What is the maximum amount for 2018 that an employee may elect to defer to a 457 plan?

For the year 2018, the maximum amount an employee could elect to defer to a 457 plan was set at $18,500. This limit reflected the contribution amounts managed by the IRS, which regularly adjusts these figures based on inflation and other factors.

The 457 plan, which is commonly available to state and local government employees as well as certain non-profit organizations, allows participants to defer a portion of their salary into a retirement savings account on a pre-tax basis. The terms of these plans can vary between employers, but the overall contribution limits are outlined by federal regulations.

In this case, the figure of $18,500 for 2018 was in line with the annual limits specified by the IRS for various retirement plans, such as 401(k) and 403(b) plans as well. Understanding these contribution limits is crucial for financial planning and ensuring that employees can maximize their retirement savings within legal limits each year.

The other amounts listed in the choices either preceded or succeeded the 2018 limit or pertain to different types of retirement plans.