What is the maximum contribution for a section 457 plan?

The maximum contribution for a section 457 plan pertains to retirement savings plans available to governmental and certain non-profit organizations, allowing employees to defer a portion of their income for retirement. The correct maximum contribution limit for a section 457 plan is influenced by regulations set forth by the IRS.

As of 2023, the maximum contribution limit for a section 457(b) plan is $22,500. However, the answer provided as $18,500 does not align with the most recent limits, indicating a potential misunderstanding of the current figures.

When considering the contribution limits, it's important to also note that individuals aged 50 or older can make additional catch-up contributions. This means that they can contribute an additional amount beyond the standard limit if they are participating in a section 457 plan.

To accurately answer the question based on up-to-date figures and regulations, it would be helpful to refer to the latest IRS guidelines, as retirement plan limits can change annually.