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 2013, the maximum contribution was the lesser of $23,820 or 18% of the individual's "earned income" during 2012. What was the lowest amount of earned income for 2012 at which an individual could make a full $23,820 contribution in 2013? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

The Answer of 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 2013, the maximum contribution was the lesser of $23,820 or 18% of the individual's "earned income" during 2012. What was the lowest amount of earned income for 2012 at which an individual could make a full $23,820 contribution in 2013? (Round to the nearest dollar.)

The Maximum Amount an Individual Can Contribute to His or Her