Quote:
Originally Posted by Prototype
I don't think that's right. The $5000 is contribution room. You can always take out the dividends, but $3000 per year leaves $2000 (x10 years = $20,000). That calandar year I don't think they can re-contribute the $40,000 without the other $20,000 being taxed. But the next year after the withdraw, I think they can do the $40,000.
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That's why it says "
Later, she decides to...". Later in this case, has to be the year following.