What is the salary reduction limit for a 401(k) plan as of current regulations?

The salary reduction limit for a 401(k) plan is primarily defined by federal regulations, which are subject to adjustment for inflation. As of the latest regulations, the correct limit for employee elective contributions to a 401(k) plan is indeed $18,000. In addition to this limit, individuals who are age 50 or older are allowed to make an additional catch-up contribution of $6,000. This catch-up provision allows those closer to retirement age to enhance their savings in the plan, acknowledging that they may need to save more aggressively as they approach retirement.

The combination of an $18,000 limit for regular contributions and a $6,000 catch-up for eligible participants confirms the total elective contribution limit for those 50 and older effectively enhances the individual's capacity to accumulate retirement savings.

Other options reflect incorrect figures, either for the base contribution or the catch-up contribution amount, which do not align with the current regulations. It's important for individuals to stay updated on these limits since they are adjusted periodically to account for inflation, but as of the data available, that combination accurately reflects the guidelines for a 401(k) plan.