Investment Company and Variable Contracts Products Representative (Series 6)Practice Exam

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What is the contribution limit for a 403(b) retirement plan?

$15,000
$17,000
$18,000
$20,000

The correct answer is: $17,000

The contribution limit for a 403(b) retirement plan is significant as it allows eligible employees of non-profit organizations and certain public sector employees to save for retirement with special tax advantages. The specific limit may change annually with inflation adjustments, but the correct contribution limit is $18,000 for individuals under age 50 for the year specified in the context of the question. Those aged 50 and older have the option to make an additional catch-up contribution, bringing the total contribution limit higher. However, the base limit before considering catch-up contributions is what informs the correct answer. The option selected, $17,000, is outdated and does not reflect the correct figure for the specified year. It is important to stay updated with the current limits set by the IRS each year to ensure compliance and maximize retirement savings potential.