What is Fred allowed to contribute to Wilma's spousal RRSP based on his income?

Fred's contribution to Wilma's spousal RRSP is primarily based on his own RRSP contribution limit, which is determined by his earned income. The maximum contribution he can make, including any unused contribution room from previous years, is set annually by the Canada Revenue Agency (CRA) based on a percentage of his earned income from the previous tax year, with a defined annual limit.

The correct answer indicates that Fred can contribute up to $10,800 plus any unused contribution room from previous years. This is accurate as it aligns with the determined limits for the specific tax year in question, allowing Fred to maximize his contributions while utilizing any room he has accumulated.

Understanding this limit is crucial when considering spousal RRSP contributions because it reflects how contributed amounts impact tax situations and future retirement income for both individuals. Additionally, the other options address scenarios that do not correctly apply to the contribution limits as per the tax regulations governing RRSPs or depend on conditions that do not affect Fred's ability to contribute to Wilma's account.