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:

Behavior Modification

The use of learning theory techniques, such as reinforcement and punishment, to alter human behavior.

Undesirable Behavior

Actions or conduct that are not wanted or approved of, often because they are harmful, inappropriate, or disruptive.

Desirable Behaviors

Refers to actions or reactions that are considered appealing, appropriate, or positive by a social group or cultural standard.

Systematic Desensitization

A behavioral therapy technique used to reduce anxiety and fear responses through gradual exposure to the feared object or situation.