Investment priority flowchart for Washington State PERS 2 workers
A vertical flowchart showing the recommended order for investing money as a Washington State PERS 2 employee, from emergency fund through taxable brokerage account.
Already in PERS 2?
As of May 2026, you are already contributing 5.38% of your salary automatically.
Everything below builds on top of that.
Step 1: Emergency fund
3 to 6 months expenses, ideally in a high-yield savings account
Step 2: Pay off high interest debt
Anything above ~8%, highest APR first
Step 3: HSA (if you have a qualifying plan)
$4,400 individual / $8,750 family
Triple tax-free. Skip to step 4 if not applicable.
Step 4: Deferred comp 457(b)
Up to $24,500 / $32,500 ages 50+ / $35,750 ages 60-63
No early withdrawal penalty
Step 5: IRA
Traditional IRA
Up to $7,500
Roth IRA
Up to $7,500
Combined contribution up to $7,500
Roth will likely be the better option for most state workers following this
flowchart, but your mileage may vary
Step 6: Partner's 401(k) or 403(b), if applicable
Up to $24,500 / $32,500 ages 50+ / $35,750 ages 60-63
If employer match exists, move this to step 2*
Step 7: Taxable brokerage account
e.g. bonds, index funds. No contribution limits.
*If your partner's employer offers a match, capture it before paying off moderate interest debt.
This is for informational purposes only and does not constitute personalized financial advice.