FEIE and 401k?

[The 585]

Good evening! I'm considering a new position that would be in Europe, but for a US company. I was told the total compensation would be completely tax exempt if I stay for at least 330 days since it's within the $105k Foreign Earned Income Exemption (FEIE) threshold.

That brings up the question, would I be eligible to contribute to the company's 401k plan? My research indicates that IRA contributions would be a definite no-go unless we end up above the income threshold, but I can't find a definite answer on whether or not I'd be able to contribute exempt income to my 401k plan. The company offers Roth 401k contribution options AND after-tax contributions, so mega backdoor Roth could be a potential too.

Articles like https://blog.visor.com/expats/saving-retirement-expat/ make it appear that 401ks CAN be contributed to, and even recommends Roth 401k contributions because they will never be taxed.  However, articles like https://moneymattersforglobetrotters.com/claim-feie-or-contribute-to-401k/ make it seem unclear whether or not 401k contributions can be made with FEIE income.

Does anyone have a clear answer on whether or not I'd be able to do Roth 401k contributions to my plan with the excluded income? And if so, could I go above and beyond and do mega backdoor Roth contributions? Thanks in advance!

[reeshau]

Did the company suggest that you could contribute to its 401k?  While working in Europe, will you be an employee of the company's US operations?

As an example:  I transferred for my company from the US to its European operations.  For all intents and purposes, I quit the US company, and was hired by the European company.  I participate in the Irish company pension plan.  The US 401k, in which I still have money, is not an option for further contribution.

Unless you are considering some kind of ex-pat / international service assignment, where some or all of you pay still comes from the US, I don't think you will have the 401k as an option, either.

[The 585]

Thanks for the example. My situation would be different, I'd be working for a US company under an international service agreement. I'll be a temporary resident with a visa work permit.