Mr. Mendez earned income for the first time in 2019. At the end of the year, his unused RRSP deduction limit was $12,000. For the 2020 tax year, his new contribution room was $11,250. Mr. Mendez is also very careful and has not "over-contributed" to his RRSP so far. On July 2nd last year, he made a $30,000 contribution to his RRSP. But on December 2nd, he realized he had calculated wrong and had over-contributed for the year. Now Mr. Mendez is facing an over-contribution penalty and must remove funds from his RRSP. What is the total amount of the financial penalty that Shawn owes to Canada Revenue Agency due to his "excess" contribution? $190.00 237.50 $270.00 $337.50
Mr. Mendez earned income for the first time in 2019. At the end of the year, his unused RRSP deduction limit was $12,000. For the 2020 tax year, his new contribution room was $11,250. Mr. Mendez is also very careful and has not "over-contributed" to his RRSP so far. On July 2nd last year, he made a $30,000 contribution to his RRSP. But on December 2nd, he realized he had calculated wrong and had over-contributed for the year. Now Mr. Mendez is facing an over-contribution penalty and must remove funds from his RRSP. What is the total amount of the financial penalty that Shawn owes to Canada Revenue Agency due to his "excess" contribution? $190.00 237.50 $270.00 $337.50
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mr. Mendez earned income for the first time in 2019. At the end of the year, his unused RRSP deduction limit was $12,000. For the 2020 tax year, his new contribution room was $11,250. Mr. Mendez is also very careful and has not "over-contributed" to his RRSP so far. On July 2nd last year, he made a $30,000 contribution to his RRSP. But on December 2nd, he realized he had calculated wrong and had over-contributed for the year. Now Mr. Mendez is facing an over-contribution penalty and must remove funds from his RRSP. What is the total amount of the financial penalty that Shawn owes to Canada Revenue Agency due to his "excess" contribution?
$190.00
237.50
$270.00
$337.50
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