What is the likely outcome for the RRSP contributions made by Fiona and Gerald?

The likely outcome for the RRSP contributions made by Fiona and Gerald is that Fiona will receive the contribution receipt, which will reduce her available contribution room. This is because in the case of an RRSP, the individual who makes the contribution is recognized by the Canada Revenue Agency (CRA) as the contributor, even if the account is held in another person’s name.

When a contribution is made to an RRSP, it affects the contribution room of the person who is designated as the account holder. Since Fiona is the account owner, her contribution room will be reduced by the amount of the contribution. Furthermore, the receipt for the contribution is issued in her name, allowing her to report it on her tax return if applicable, even though the actual contribution may have come from Gerald.

This scenario emphasizes the importance of understanding how RRSP contributions impact contribution room and tax benefits, as well as the relationship between contributors and account holders in the system.