Investment Plan — 401(k)

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.

Catch-Up Contributions

If you are age 50 or above, you can make additional catch-up contributions based on your age:

• Age 50–59 or 64+: You can contribute up to $31,000.
• Age 60–63: You can contribute up to $34,750.

The amounts above are 2025 limits and are subject to change for 2026.

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

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.

 

After-Tax Contributions

Boost your retirement savings beyond the standard pre-tax and Roth contribution limits by using after-tax dollars.

If you’ve already maxed out your annual pre-tax and Roth 401(k) contributions, you can still contribute more — up to the overall IRS defined contribution limit (including employer contributions and after-tax contributions).

For example, let’s say you contribute the maximum pre-tax amount. Your employer contributions are $10,000. You can still contribute the difference between your contributions + your employer contributions and the after-tax total limit. This strategy allows you to take full advantage of your 401(k) plan’s contribution limits and potentially convert those after-tax dollars to Roth for tax-free growth.

Convert After-Tax Contributions to Roth for Tax-Free Growth

If you’ve already reached the annual IRS limit for pre-tax and Roth 401(k) contributions, you can still contribute more using after-tax dollars—up to the total annual plan limit. For 2025, that limit is $70,000 if you’re under age 50, or $77,500 if you’re age 50 or older (including your contributions, Avista’s matching contributions, and any after-tax contributions).

Once you’ve made after-tax contributions, you can convert any portion of those funds to your Roth 401(k) account through an in-plan Roth conversion. This strategy allows you to build a potentially tax-free retirement balance by paying taxes on the converted amount now, so that future qualified withdrawals—including investment earnings—are tax-free.

Note: When you convert funds, you’ll pay income tax on the funds that you convert, but those contributions—and any investment gains from those funds—will be tax free when you retire.

The amounts above are 2025 limits and are subject to change for 2026.

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.