How Much You Can Contribute to Your RRSP Depends on Your

question 94

Multiple Choice

How much you can contribute to your RRSP depends on your

• A)length of time on the job.
• B)age, residency, and tax status.
• C)other taxable investments made during the year.
• D)earned income and pension adjustment.

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Definitions:

Taxable Income

Income subject to tax by federal, state, or local tax authorities.

Gross Income

The total revenue received before any deductions or allowances, typically in the context of business revenues or individual wages before taxes.

Deductions

Amounts subtracted from gross income to reduce taxable income, including certain expenses, contributions, and allowances.

Sales Tax

A tax imposed by a government on the sale of goods and services, usually calculated as a percentage of the sales price.