IRS limits
Each year, the Internal Revenue Service (IRS) sets limits that affect how much you can contribute to a 401(k) plan. These limits cover:
- Your annual contributions, which include pre-tax and Roth contributions combined
- Your pre-tax and Roth “catch up” contributions, if you’ll be age 50 or above at the end of the calendar year and have already contributed the IRS maximum annual amount
- Your eligible pay, which is the amount of your pay that can be used to make 401(k) Plan contributions
The IRS occasionally increases these annual limits to keep pace with the cost of living. For 2026 the IRS annual limits are:
| Annual pre-tax and Roth contributions | $24,500 |
| Catch-up pre-tax and Roth contributions | $8,000 |
| Eligible pay | $360,000 |
Hewlett Packard Enterprise 401(k) Plan limits
The Hewlett Packard Enterprise 401(k) Plan (the “HPE 401(k)”) has its own limits, too. You can contribute up to 50% of your annual eligible pay plus an additional 25% of eligible pay in catch-up contributions if you are age 50 and over on the last day of the calendar year, but only up to annual IRS limits. In other words, IRS limits trump HPE 401(k) limits. In addition, you have the option to make after-tax contributions in the HPE 401(k) Plan—and save beyond the IRS annual limit on pre-tax and Roth contributions—up to $66,000 of eligible pay in 2026.
The limits in action
So, how do these limits affect your ability to save for retirement? Here’s a look at three fictional HPE employees to help you understand how these limits come into play for 2026.
| Dan, Age 45 | Olivia, Age 55 | Ellen, Age 60 | |
|---|---|---|---|
| Annual election |
|
|
|
| Annual eligible pay | $150,000 | $200,000 | $250,000 |
| Hewlett Packard Enterprise 401(k) Plan contribution | $15,000 | $20,000 | $20,500 |
| Catch-up contribution | NA | $4,000 | $6,500 |
| Total annual employee contribution | $15,000 | $24,000 | $27,000 |
As you can see, Dan elects to contribute 10% of his $150,000 eligible pay to the HPE 401(k) Plan. His annual contribution of $15,000 is below the IRS 2026 limit of $24,500. Because Dan is younger than age 50, he is not eligible for catch-up contributions.
Olivia elects to contribute 10% of her $200,000 eligible pay to the HPE 401(k) Plan, which is $20,000. Because this amount is below the IRS 2026 limit of $24,500, she can contribute this full amount. Olivia can also make catch-up contributions because she’s over age 50. She elects a 2% catch-up contribution, which is $4,000 (and below both the Plan limit of 25% of eligible pay on catch-up contributions and the IRS catch-up contribution limit of $8,000).
Ellen elects to contribute 25% of her $250,000 eligible pay to the HPE 401(k) Plan. In addition, she elects a 3% catch-up contribution. However, while Ellen’s elections are below the HPE 401(k) Plan limits, they’re above the IRS limits. Ellen is limited to the IRS 2026 limit of $24,500 and catch-up limit of $8,000.
Remember, this example is based on 2026 limits. To change your HPE 401(k) Plan contribution amount, click here and log in to your Fidelity NetBenefits® account.
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Make the most of your 401(k)
Understanding annual contribution limits can help you take full advantage of available retirement savings options.
