Has the laws/rules changed?
I thought higher earners were limited to what they could stash in a 401(k) based on a formula to the extent that what non-executive pay employees participation level is at the company.
That is, the more a company successfully incentivizes employees to participate, the more income an executive can put in the plan.
Yup. I contribute the limit.
All this does is make it harder for the high income earner to reduce their overall taxable AGI which keeps them in the higher 32% and 35% tax brackets rather than qualifying for 24%.
With the elimination of the federal mortgage interest and state taxes deduction this guarantees high earners will have to look for other tax schemes to lower their tax bracket. In the end the tax man gets to take a bigger bite out of your total income if you are successful.