Question
Required information [The following information applies to the questions displayed below.] Reggie is a self-employed taxpayer who turns 59 years old at the end of
Required information
[The following information applies to the questions displayed below.]
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2019). In 2019, 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? (Round your intermediate calculations to the nearest whole dollar amount.)
1) a. He sets up a SEP IRA.
Max contribution is ____
2) b. He sets up an individual 401(k).
Max contribution is _____
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