Overview

Western Digital is committed to supporting your financial well-being — today and tomorrow. The Western Digital Corporation 401(k) Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.

Key advantages include:

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Company matches 50% up to the first 6% of combined pre-tax and/or Roth contributions

Current tax savings

Tax-deferred investment growth

Wide range of investment choices

Convenient payroll deductions

Manage your account

Visit Empower Retirement to enroll or manage your account:

  • Enroll in the plan
  • Check your balance
  • Change your contribution rates (base and bonus)
  • Manage your investments
  • Update your beneficiary
  • Use planning tools and calculators
  • Access forms and documents
What if I don’t enroll?

You are immediately eligible upon your date of hire. If you don’t take any enrollment action — either enrolling yourself or opting out — within 30 days of becoming eligible, you will be automatically enrolled at 6% of your eligible pre-tax salary and 6% of your pre-tax bonus pay. You will be invested in the Target Date Fund that most closely matches your retirement date, based on an assumed retirement age of 65. You may change your contribution rate and investment elections at any time by calling Empower Retirement at 888-401k-WDC (401-5932) or you can make changes to your account online at Empower Retirement.

 

Your Contributions

You may contribute between 1% and 85% of your eligible pay to your plan account, up to annual IRS limits, including pre-tax and Roth contributions. In 2022, the IRS limits allow you to contribute up to:

  • $20,500 if you are under age 50
  • $27,000 if you’re age 50 or older this year (which includes an additional $6,500 in catch-up contributions).

These limits include your pre-tax contributions, Roth after-tax contributions, or a combination of both.

You also have the option of contributing to the plan with non-Roth after-tax money, up to 10% of your eligible pay, limited to $30,500 in 2022.

Before-tax vs. Roth after-tax

The Western Digital Corporation 401(k) Plan gives you the flexibility to save for retirement in a variety of ways. You can make pre-tax contributions, Roth after-tax contributions, or a combination of the two.

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Before-Tax Contributions

The money goes into your Plan account before taxes are deducted, so you keep more of your take-home pay.

Since you don’t pay taxes at the time you contribute, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).

Roth After-Tax Contributions

The money goes into your Plan account after taxes are withheld.

In exchange for paying taxes now, both your contributions and any associated earnings can be withdrawn tax-free in retirement, provided you meet two requirements:

  • At least five years have elapsed since your first Roth contribution.
  • You are at least 59½ or the withdrawal follows death or total disability.
Catch up!

It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $6,500 in catch-up contributions.

 

Company Contributions

To help you reach your retirement planning goals, Western Digital makes the following contributions to your account:

Company Matching Contributions

To support your retirement saving efforts, Western Digital matches 50% of your combined pre-tax and Roth contributions to the plan, up to 6% of your eligible pay, subject to an annual maximum of $9,150 for 2022. Eligible pay includes: base salary, Short Term Incentives (STI), Sales Incentives (Commissions), overtime, holiday, sick, vacation, shift pay, jury duty, bereavement. Not eligible: one-time bonuses such as sign-on or retention bonuses.

Here’s how the company match works:

Meet the match!

Try to contribute at least 6% to take full advantage of the match — otherwise, you’re saying “No, thanks” to free money.

 

Vesting

Vesting is another way of saying “how much of the money is yours to keep if you leave the company.” You are always 100% vested in your own contributions, including any investment gains and losses on the money. Note that beginning on January 1, 2022, all active employees will be eligible for immediate vesting in the 401(k) Plan. This means that not only will you continue to be 100% vested in your own contributions, but you will also be immediately 100% vested in company contributions as well. So make sure you are participating in the 401(k) Plan and consider making a minimum 6% contribution to ensure you are taking advantage of this great benefit.

Have you named a beneficiary?

It’s important to designate a beneficiary to receive the value of your Western Digital Corporation 401(k) Plan 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. Login to your Empower Retirement account 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. For more information, visit Empower Retirement or call 888-401k-WDC (401-5932).

Think Before You Act

If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your financial future.

Taking money from your account now

may lead to a smaller savings balance when you retire.

Not only are you taking money away from your retirement savings,

but the burden of repaying the loan may make it even harder to get back on track.

If you take a plan loan, you’ll also lose more money to taxes

because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.

If you withdraw pre-tax money from your plan account,

in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½.

 

Tools & Resources

Make the most of your retirement planning by taking advantage of these tools and resources:

  • Empower Retirement — Access tools and education on your plan website to help you make informed investment decisions.

Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Login to your online account with Empower Retirement or call 888-401k-WDC (401-5932) for a prospectus and, if available, a summary prospectus, or an offering circular containing this and other information. Please read them carefully.

Investing involves risk, including the risk of loss.