Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2023). In 2023, her net Schedule C income was $316,000. This was her only source of income. This year, Rita is considering setting up a retirement plan.

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

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

Problem 13-85 Part a (Algo)

a. She sets up a SEP IRA.

answer is not $58,000