What is the maximum that Lewis can contribute to his RRSP given his earned contribution room and unused contribution room?

Study for the TNL LLQP Segregated Funds and Annuities Exam. Utilize flashcards and multiple choice questions, each with hints and explanations, to effectively prepare for your certification!

To determine the maximum that Lewis can contribute to his RRSP, it is essential to understand how RRSP contribution limits work. The contribution room typically includes both the amount earned for the current year and any unused contribution room from previous years.

If Lewis has an earned contribution room of $84,930, along with any additional unused contribution room he may have, it indicates that this is his total allowable contribution amount. The RRSP contribution limits are designed to allow individuals to save for retirement effectively, with the ability to catch up on contributions from previous years.

Given that the selected answer reflects the total contribution room available to Lewis, it indicates he has reached the maximum limit allowed for his RRSP contribution. Therefore, if the total contribution room sums up to $84,930, choosing this value indicates a correct understanding of how individual contributions to RRSPs are calculated based on available room.

When assessing the other options, it is evident that they do not reflect either the complete earned amount or fail to account for the unused contributions, which would not provide an accurate picture of Lewis's maximum allowable contribution. Hence, choosing the maximum listed option highlights that Lewis is maximizing his tax-advantaged retirement savings potential based on the room he has available.

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