What was Fiona's salary when considering her earned income for RRSP limits?

Study for the Canadian Institute of Financial Planning Exam. Utilize flashcards and multiple choice questions, each equipped with hints and explanations to aid your preparation. Get ready to conquer your exam with confidence!

Fiona's earned income for RRSP (Registered Retirement Savings Plan) contribution limits is calculated based on specific components of her income, such as salary and other eligible earnings. In this context, it appears that Fiona's total earned income amounts to $87,000, which is the figure used to calculate her maximum allowable RRSP contribution.

The reason this figure is likely the correct answer lies in the calculations associated with the RRSP contribution limits, which generally allow individuals to contribute 18% of their earned income, up to a maximum dollar limit set by the government each year. Fiona's earned income would thus be classified including her salary and any other qualifying earnings that fit within the criteria for RRSP contributions.

The options reflecting higher values, like $90,000 or slightly lower values, likely either misrepresent the total eligible income or might include figures beyond what can be counted for RRSP purposes. Understanding the context of the RRSP contribution rules is crucial in determining the precise earned income that can be factored into such financial planning decisions.

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