Investment Plan — 401(k)

The Avista Corp Investment Plan – 401(k) makes it simple and rewarding to save for your future

Taking steps to ensure your current and future financial security is an important part of your overall well-being. The Avista Corp Investment Plan – 401(k) helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.

Key Features at a Glance

  • Current tax savings. You will pay less in income taxes when you make pre-tax contributions.
  • Roth after tax contributions. Contributions to a Roth account are on an after-tax basis. Therefore, distributions from your Roth account — plus any earnings — will be tax-free if you meet certain conditions.
  • Tax-deferred investment growth. With 401(k) contributions, your money has the potential to grow faster.
  • Wide range of investment choices. Choose how you want to invest your money.
  • Convenient payroll deductions. The 401(k) makes it easy to save for your future.
  • Matching contribution from Avista. The company will match up to 6% of your contributions (both pre-tax and Roth, and regardless of whether you were automatically enrolled in the Plan) during the plan year. The formula is based on your hire date and employee group.

 

Eligibility and Enrollment

Eligible employees are enrolled in the plan automatically at a paycheck deduction rate of 6% of your eligible gross pay. Employees hired on or after April 1, 2022 are automatically enrolled in the plan at a paycheck deduction rate of 6% of your eligible gross pay.

Your contributions will be invested in an age-appropriate target date fund. You can opt out, contribute a different amount, or change your investment fund at any time by visiting Vanguard or calling 800-523-1188.

Contributions

Your payroll deduction rate automatically increases each January:

  • If you were hired prior to January 1, 2018, your deduction automatically increases by 1% until you reach 6%.
  • If you were hired on or after January 1, 2018, your deduction automatically increases by 1% until you reach 15%.

You may contribute between 1% and 75% of your eligible pay to your plan account, up to annual IRS limits. In 20243, the IRS limits allow you to contribute up to:

  • $23,000 if you are under age 50.
  • $30,500 if you are age 50 or older this year (which includes an additional $7,500 in catch-up contributions, made as a separate dollar amount election).

Try to contribute at least 6% to take full advantage of the match — otherwise, you are leaving free money on the table. Log in to Vanguard to increase your contribution rate.

Matching Contributions

The company will match up to 6% of your contributions (both pre-tax and Roth, and regardless of whether you were automatically enrolled in the Plan) during the plan year. There are different Company matching contribution formulas that apply, depending on when you are hired or rehired and your employee group.

Avista’s contributions become 100% vested after your one-year employment anniversary.

Local 77-B Employees
hired prior to January 1, 2011		 Local 77-B Employees
hired on or after January 1, 2011
(externally or from Non-Bargaining without Defined Pension Benefit)
Your Company matching contribution is $0.75 for every $1 of contribution you make to the Plan up to a maximum of 6% of pay. Effective January 1, 2011 your Company matching contribution is $1 for every $1 of contribution you make to the Plan up to a maximum of 6% of pay.
Company contributions become 100% vested after a participant has reached their one-year employment anniversary. Company contributions become 100% vested after a participant has reached their one-year employment anniversary.
You can contribute the lesser of 75% of your pay or up to the IRS limit. You can contribute the lesser of 75% of your pay or up to the IRS limit.

Company Non-Elective Contribution

Note: Available for new employees hired externally or from Non-Bargaining without Pension Benefit.

The Company will make a non-elective contribution to the Plan on your behalf if you are eligible to receive such contributions.

Contribution amounts:

  • Employees under age 40 receive a 3% contribution
  • Employees age 40-49 receive a 4% contribution
  • Employees age 50 and older receive a 5% contribution

Your contribution will begin on your very first paycheck. It will be placed automatically in the Target Date Retirement Funds until you elect otherwise. You can go to Vanguard at any time to change how this contribution is invested.

Note: This Non-Elective Contribution will be invested in the same funds that you elect for your 401(k).
You will be vested in the plan after three years of service.

 

Name a Beneficiary

It is important to designate a beneficiary to receive the value of your 401(k) account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit Vanguard to add or change a beneficiary.

Withdrawals and Loans

The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age.

There are rules around withdrawals and loans. For more information, visit Vanguard or call 800-523-1188.