1. Wait until you receive a 401(k) enrollment email from the People Team.
2. Login to RED to elect your deferral % or flat amount, and designate your beneficiary.
3. Login to Charles Schwab’s website.

You have the choice between a Traditional 401(k) and a Roth 401(k).

The basic difference between a traditional and a Roth 401(k) is when you pay the taxes. With a traditional 401(k), you make contributions with pre-tax dollars, so you get a tax break up front, helping to lower your current income tax bill. Your money—both contributions and earnings—grows tax-deferred until you withdraw it. At that time, withdrawals are considered to be ordinary income and you have to pay Uncle Sam his due at your current tax rate; there may be state taxes as well. (With certain exceptions, you’ll also pay a 10 percent penalty if you’re under 59½.)

With a Roth 401(k), it’s basically the reverse. You make your contributions with after-tax dollars, meaning there’s no upfront tax deduction. However, withdrawals of both contributions and earnings are tax-free at age 59½, as long as you’ve held the account for five years.

So it mostly comes down to deciding when it’s better for you to pay the taxes—now or later. And that depends a lot on your timeframe as well as what the future may look like.