Retirement Accounts
An employee participates in both a 403(b) plan and a 457 plan through their employer. For 2025, what is the maximum total they can defer across both plans (assuming they are under age 50)?
457 plan limits are separate from 401(k)/403(b) limits. An employee can contribute the full $23,500 to their 403(b) AND the full $23,500 to their 457, for a total of $47,000 in tax-advantaged deferrals. This is a signifi
Complete Analysis & Legal Rationale
457 plan limits are separate from 401(k)/403(b) limits. An employee can contribute the full $23,500 to their 403(b) AND the full $23,500 to their 457, for a total of $47,000 in tax-advantaged deferrals. This is a significant advantage for eligible government and nonprofit employees.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.