Traditional 401k tax deduction income limit

[thegoodreturn]

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.

[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.

[thegoodreturn]

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?

[Critter-3]

Pre tax contributions to a 401K has no income limitations from the IRS however as already mentioned the employer may have limits to consider. 

[Opus 17]

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@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?

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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.