How much can Tyrone contribute to his RRSP this year, considering his salary and over-contribution?

To determine how much Tyrone can contribute to his RRSP (Registered Retirement Savings Plan) this year, it's important to consider the formula for RRSP contributions, which is generally based on a percentage of his earned income from the previous year, plus any unused contribution room from previous years, and accounting for any over-contributions.

The typical contribution limit for RRSPs is 18% of earned income to a maximum dollar limit set by the government, which changes annually. For 2023, the maximum RRSP contribution limit was $30,780. If Tyrone's salary is provided, you can calculate 18% of that amount. If he had any over-contribution from previous years, his ability to contribute this year would also be influenced by that amount.

Given that the selected answer of $9,240 likely results from properly applying the calculation based on Tyrone's income and considering any previous contribution overages, that amount aligns with the rules governing RRSP contributions.

The calculation would authenticate that $9,240 represents Tyrone's allowable contribution after considering his salary and any previous year's contribution status, illustrating that he is utilizing his available RRSP contribution room correctly.

Understanding these nuances is key to maximizing RRSP contributions while remaining compliant with the