Final answer:
Harry can contribute up to $13,500 to his 401(k) plan in 2023, since he has already contributed $9,000 to his 403(b) and the contribution limits for each plan are separate.
Step-by-step explanation:
In 2023, a 45-year-old named Harry, who works for a nonprofit organization, has already contributed $9,000 in before-tax elective deferrals to a section 403(b) plan. As defined contribution plans, both 401(k) and 403(b) plans allow employees to invest part of their income into retirement savings before taxes are applied, and these funds grow tax-deferred over time.
The contribution limit for 401(k) plans in 2023 is $22,500 for those under age 50, which means Harry can still contribute up to $13,500 to his 401(k) for the year, as the limits apply separately for the two types of plans. Therefore, Harry could maximize his retirement savings by taking advantage of both plans up to the specified limits without one affecting the other.