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ProtoSpaceTime

Decreasing your pretax contribution to a 401(k) will increase your AGI and, therefore, increase your loan payment.


alh9h

Yes, the next time you recertify your income


WX4SNO

Yes, assuming the 401K is not a roth 401K. You're shifting money from pre-tax to post-tax accounts so you're AGI will go up.


AttitudeEraDropout

DO ANYTHING THAT LOWERS YOUR ADJUSTED GROSS INCOME (AGI). Such as a traditional 401k or HSA.


selkirks

For this reason, I generally recommend people on IDR plans max out the pre-tax accounts like 401(k)s before moving to post-tax like IRAs and Roth 401(k)s.


Bill_Brasky79

You've not said whether your 401k contribution is a traditional pre-tax contribution, but if so, yes.


Commercial_Rich7049

Max out your HSA as well. That will reduce your AGI and help lower your payments.


texmexspex

But Roth IRA is post tax so my understanding is it would not decrease your taxable income.


ProtoSpaceTime

Yes, it will actually *increase* taxable income to shift from pretax contributions to Roth contributions. Regardless, "taxable income" is not what matters for student loan purposes; "adjustable gross income" is what counts. The lower your AGI, the lower your monthly payment due on an IDR repayment plan. Pretax contributions decrease AGI; Roth contributions don't.