What is the maximum amount for 2018 that an employee may elect to defer to a 401(k) or 403(b) plan?

In 2018, the maximum amount that an employee could elect to defer to a 401(k) or 403(b) plan was $18,500. This limit applied to elective deferrals made by employees to their retirement plans, allowing individuals to save more for retirement while receiving potential tax benefits.

The significance of this amount is that it represented an important milestone in encouraging retirement savings, as employees were able to maximize their contributions. Additionally, individuals aged 50 and over could benefit from a catch-up contribution provision, allowing them to contribute an additional $6,000, thus enhancing their ability to prepare for retirement as they approached their retirement years.

The other options reflect lower contribution limits that were not applicable for 2018. Therefore, the $18,500 figure distinctly marks the correct limit set by the IRS for that tax year concerning defined contribution plans like a 401(k) or 403(b).