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Texa$aver and Roth Contribution

In recent surveys, employees indicated a strong interest in adding a Roth feature to Texa$aver. As a result, effective January 2, 2012, Texa$aver offers a Roth contribution option in both the 401(k) and 457 Plans. Both Plans now give you the flexibility to designate all or a portion of your contributions as Roth contributions. Roth (after-tax) and traditional (before-tax) contributions each have their own advantages. Please review the following FAQs and carefully consider which option is best for you. For more detailed FAQs, please visit www.texasaver.com.

Roth contributions allow participants to contribute to the Texa$aver 401(k) and/or 457 Plan with after-tax dollars. No taxes are withheld from Roth contributions or their earnings when a distribution is taken as long as it is a “qualified” distribution (see “What is considered a qualified Roth distribution?”). You can designate all or a portion of your 401(k) and 457 Plan contributions as Roth contributions.