When it comes to RRSP and TFSA, Kevin’s father, George has simply transferred the amounts to both plans based on what his tax advisor recommends. George has always contributed the maximum to both his RRSP and TFSA on January 1^st each year, but without quite understanding how either the RRSP or TFSA work. He has therefore asked Kevin to work out a few scenarios for him to help him better understand. 

George: (currently 41 years old, birthday is June 23rd):

• graduated in April 2000 and met Kevin’s mother at their graduation ceremony, they married a year later; and
• started his own business upon graduation and always paid himself a salary of $300,000 each year for the last 22 years.

George wants to know how his tax advisor calculated his 2021 RRSP contribution.

Calculate George’s 2021 RRSP contribution.

Answer rating: 100% (QA)

Year Estimated income In Contibution RRSP Limit Un used limit Apr00 300000 54000 13500 40500 Apr01 3... View the full answer