Benito has $5,479 carry-forward balance from unused RRSP contribution room in the prior year. He had a salary
income of $66,015 last year. The maximum contribution for
the year is the lesser of $26,500 or 18% of prior year's
earned income. He and his employer each contributed 3%
of his salary to a defined contribution pension plan.
Investment income totaled $6,500 from interest and
dividends in the prior year. How much could Benito
contribute to his RRSP this year?