The Maximum Amount an Individual Can Contribute to His or Her

question 313

Short Answer

The maximum amount an individual can contribute to his or her Registered Retirement Savings Plan (RRSP) for a year is set from time to time by the Regulations of the Income Tax Act. For the year 2016, the maximum contribution was the lesser of $23,820 or 18% of the individual's "earned income" during 2015. What was the lowest amount of earned income for 2015 at which an individual could make a full $23,820 contribution in 2016? (Round to the nearest dollar.)

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Definitions:

Account Representation

The process or act of managing customer accounts by a designated sales or service representative within an organization.

Detail Selling

A sales strategy focusing on the specific features and benefits of a product or service to persuade potential customers.

Business System

An organized set of procedures, processes, and methods that a company uses to conduct business and achieve its objectives.

Equitable Value

The fair and unbiased assessment of the worth of goods, services, or properties, considering all relevant factors to ensure fairness to all parties involved.