That is normal, the washer is raw steel. This happened on my other bike as well. I would suggest replacing with s.s. or remove it, knock the rust of, prime and paint.
Waxing this raw steel will get you no where..

no rust here though, but will definitely watch out for it

Same spot with mine.I'm getting really tired of cheap parts on my harley.The clamps used to hold the heat-shields on my fatbob are so cheap the shields rattle!I tried tightening them and two have stripped,and the dealer says I have to replace them at my cost.I took the shields right off now I couldn't stand the noise any more!

Mine is rusty as well but I just left it since it was raw metal. I will think about getting a stainless steel washer one if these days.

Still no word on warranty coverage.

I originally thought it was just a washer, so wasn't too worried about it, but it's actually the bottom of the steering head fork stem.

I had rust on the same spot and a couple of others. Also had a little bit of rust on the spokes, but honestly I do not clean the bike very often and I ride in all weather. I decided to start using Bull Frog rust preventative. I used the wax on the wheels and the spray on other parts and so far it has worked very well.

http://www.bull-frog.com/

Call me kooky but you're worried about a washer that you can barely see without crouching down getting a little rusty? Wouldn't a warm area that you stated you store your bike in promote rust because warm air usually has more humidity?

no washer... looks that way because of the retaining ring.

Its only surface rust on a piece of raw steel that will never rust though in your lifetime. The steering stem rides in the bearings and is usually raw on most bikes.

If it bothers you, paint it...then get back to riding it instead of looking at it!

Yeah, I could sanded off the rust and repainted it twice in the amount of time I've wasted trying to get warranty coverage. Plus who knows what they'd do, if they did cover it - give me a new one that starts rusting, too? ;-)

So, point taken.