Philip just won $100,000 in the lottery! With this money he would like to invest it wisely and put as much as he can in a Tax-Free Savings Account (TFSA). Calculate Philip’s maximum amount that he can contribute to his TFSA assuming the following:We are December 17, 2021Philip is 60 years old and just retiredPhilip contributed $4,000 to his TFSA in 2019Tax-Free Savings Account (TFSA): Annual LimitsYearsAnnual LimitYearsAnnual LimitYear started 2009 - 2012$5,000/year2016 - 2018$5,500/year2013 - 2014$5,500/year2019 - 2020$6,000/year2015$10,000/year2021$6,000/yeara. $75,500b. $60,000c. $71,500d. $15,500e. Philip can no longer contribute to his TFSA as he is retired.

Tax-free savings accounts (TFSAs) are a type of tax-advantaged account available to Canadian…

Answered: Philip is 60 years old and just retired…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Philip just won $100,000 in the lottery! With this money he would like to invest it wisely and put as much as he can in a Tax-Free Savings Account (TFSA). Calculate Philip’s maximum amount that he can contribute to his TFSA assuming the following:

We are December 17, 2021
Philip is 60 years old and just retired
Philip contributed $4,000 to his TFSA in 2019

Tax-Free Savings Account (TFSA): Annual Limits
Years	Annual Limit	Years	Annual Limit
Year started 2009 - 2012	$5,000/year	2016 - 2018	$5,500/year
2013 - 2014	$5,500/year	2019 - 2020	$6,000/year
2015	$10,000/year	2021	$6,000/year

a. $75,500

b. $60,000

c. $71,500

d. $15,500

e. Philip can no longer contribute to his TFSA as he is retired.

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