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

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$[$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 C income was $$268,000.$ 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.

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