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D is correct because Sujay’s registered retirement savings plan (RRSP) contribution room for the year will be reduced by $3,600. This is because his employer’s defined contribution pension plan is considered a registered pension plan (RPP), which affects his RRSP contribution room through a pension adjustment (PA). The PA is calculated as 18% of his earned income in the previous year minus his RPP contributions in the current year. In this case, Sujay’s PA for the current year is $3,600, which is 18% of his $60,000 salary minus his 3% contribution ($1,800) and his employer’s 3% contribution ($1,800). The PA reduces his RRSP contribution room for the next year by the same amount. It will have an effect on his RRSP contribution room (A), as it is not based on earned income only, but also on RPP contributions. It will not reduce his contribution room by $51,800 (B), as this is more than his earned income. It will not reduce his contribution room by $10,800 ©, as this is 18% of his earned income without subtracting his RPP contributions.

A fixed-period systematic withdrawal plan (SWP) is specifically designed for investors who need income over a defined time frame, making Option C the correct choice. The Investment Funds in Canada course explains that fixed-period plans “provide regular withdrawals over a specified number of years, after which the fund is depleted.”

Samantha’s income requirement is temporary—she needs income for five years (ages 60 to 65) until her pension benefits begin. A fixed-period SWP ensures that withdrawals are structured to exhaust or significantly reduce the investment precisely at the end of that period, aligning perfectly with her objective.

A life SWP (Option B) is intended to provide income for an unknown duration and does not match Samantha’s defined timeframe. A constant SWP focuses on maintaining consistent withdrawal amounts indefinitely, which may result in premature depletion or excess capital. A ratio SWP adjusts withdrawals based on portfolio value and does not guarantee coverage for a specific period.

The CIFC text stresses that withdrawal strategies must align with time horizon and income needs, both of which clearly point to a fixed-period plan in this case. Therefore, Option C is fully correct and CIFC-verified.