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Note: This module will move to cloudandthings/policy-packer

terraform-aws-policy-packer

Pack AWS policy SIDs to get around policy character limits.

For managed policies You can add up to 10 managed policies to an IAM user, role, or group.

The size of each managed policy cannot exceed 6,144 characters.

Note
IAM does not count white space when calculating the size of a policy against this quota.
For service control policies 5,120 characters

https://docs.aws.amazon.com/IAM/latest/UserGuide/reference_iam-quotas.html
https://docs.aws.amazon.com/organizations/latest/userguide/org_troubleshoot_policies.html#scptoolong