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

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Enhance your competence for the Series 6 Exam. Study with expertly crafted multiple-choice questions, each complete with hints and detailed explanations. Elevate your performance and pass the exam with confidence.

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What is the maximum contribution limit for a 457 plan?

$15,500
$17,000
$19,500
$22,000

The correct answer is: $17,000

The maximum contribution limit for a 457 plan is generally determined by regulatory guidelines set by the Internal Revenue Service (IRS). The correct contribution limit, which reflects the ability to defer income into a retirement savings plan for certain government and non-profit employees, is subject to annual adjustments based on inflation and other factors. In recent years, the limit has often increased to allow employees to save more for retirement. For 2022, for example, the limit was set at $20,500; this reflects a trend where limits tend to rise periodically. It's important to refer to the most current IRS guidelines or resources to verify the limits applicable for the specific plan year. However, the contribution limits can differ based on the specifics of the individual's situation, such as age and whether they qualify for catch-up contributions. Those approaching retirement age may have additional allowances, increasing their ability to save in their 457 plans. Thus, while the selected answer might align with prior contribution limits, it doesn't adhere to the most recent standards. Therefore, understanding the specific nuances of 457 plans is essential to accurately assess contribution limits and to ensure compliance with federal regulations.