Elvira is a self-employed taxpayer who turns 42 years old at the end of the year (2019).

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Elvira is a self-employed taxpayer who turns 42 years old at the end of the year (2019). In 2019, her net Schedule C income was $130,000. This was her only source of income. This year, Elvira is considering setting up a retirement plan. What is the maximum amount Elvira may contribute to the selfemployed plan in each of the following situations?

a. She sets up a SEP IRA.

b. She sets up an individual 401(k)

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