How does the new Roth fit within the WaMu Savings Plan?
In short, the new Roth 401(k) broadens your arsenal of investment options. It gives you another strategy. When the new Roth is up and running, your WaMu Savings Plan can have three contribution sources: this new Roth, the current 401(k) and your company match. The first two contribution sources come from you, as a participant, if you choose to be in the program. The third contribution source comes from WaMu and is triggered by your participation (for details on how the company match works, go to the WaMu Wealth page on WaMu.net). Keep in mind that the company match is ALWAYS pre-tax — meaning that the company match and associated earnings will be taxed at a later date — regardless of the type of employee contribution that triggers the match.
