Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2022). In 2022, his net Schedule C income was $254,000. 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?

Note: Round your intermediate calculations to the nearest whole dollar amount.

a. He sets up a SEP IRA.

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