Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2014). In 2014, his net Schedule C income was $300,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan.

What is the maximum amount he may contribute to the self-employed plan in each of the following situations?

a.He sets up a SEP IRA.

Maximum amount contributed____?

b.He sets up an individual 401(k).

Maximum amount contributed____?