@thegoodreturn wrote:
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?
Your ability to exclude income from taxation by contributing it to a pre-tax 401(k) is not limited by your income by the IRS. (It's not really a deduction, it's an exclusion, because it comes out of your gross income before being reported on your W-2.) The limit is $20,500, or $27,000 if you are over age 50.
Your employer can't favor highly paid employees, so your employer might have a limit as to what you can contribute.
If you are covered by a retirement plan at work, your ability to also contribute to a pre-tax or Roth IRA on the side is definitely limited.
