Question

Traditional 401k tax deduction income limit

Forum|Forum|4 years ago
May 3, 2022
1 reply
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My employer has a retirement plan, and I can elect for roth 401k and / or traditional 401k contributions.

To get the full tax deduction on traditional 401k contributions, is there a limit on my income? I feel like I saw a limit a few years ago, but a quick Google search today didn't turn up anything.

M

Mike9241

no income limits currently for employer 401(k) plans (Roth or traditional). however, the plan itself could limit contributions. Every year, the Employee Retirement Income Security Act (ERISA) requires employers to undergo 401k discrimination testing to ensure plans are not discriminating against lower-income employees. the highly compensated may find that some of their contributions returned so the plan remains qualified.

T

thegoodreturnAuthor

Thanks Mike9241.

And just to confirm, this is for being able to take the full tax deduction on traditional 401k contributions, instead of merely being able to contribute to a traditional 401k?