Required Information

Problem $13-85($LO $13-5)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Rita is a self$-$employed taxpayer who turns $39$ years old at the end of the year. In the current year, her net Schedule $\backslash ($ C $\backslash )$ income was $\backslash (\backslash$$ $298,000\backslash ).$ 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 Intermedlate 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 complete but not entirely correct.

Requlred Information

Problem $13-85($LO $13-5)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Rita is a self$-$employed taxpayer who turns $39$ years old at the end of the year. In the current year, her net Schedule $\backslash ($ C $\backslash )$ income was $\backslash (\backslash$$ $298,000\backslash ).$ 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 Intermedlate calculations and final answers to the nearest whole dollar amount.

Problem $13-85$ Part b $($Algo$)$

b$.$ She sets up an individual $401($k$).$