Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2019).

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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 selfemployed plan in each of the following situations?

a. He sets up a SEP IRA.

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

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McGraw Hills Essentials Of Federal Taxation 2020 Edition

ISBN: 9781260433128

11th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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