PLAN LIKE FOR YOU AND YOURS

Transcription

1 U S A N A H E A L T H S C I E N C E S ( k ) P L A N PLAN LIKE FOR YOU AND YOURS

2 Welcome to Fidelity Investments : A guide to the transition ahead At USANA Health Sciences, Inc., we re committed to offering you resources to help you map out your retirement goals. Starting October 12, 2017, Fidelity Investments will be the new service provider for the USANA Health Sciences 401(k) Plan (the Plan ). No matter where you are in your journey, we can help you map out the retirement you envision. Get ready for the changes ahead Your retirement savings plan is an important benefit, so you need the right information, resources, and support to help you make decisions with confidence. With more than 65 years of financial services experience, Fidelity can help you put a plan in place that balances the needs of your life today with your retirement vision for tomorrow. Use this guide as a resource to help you take an active role in your retirement planning. Table of Contents Page Activity Calendar 4 Transition Highlights 6 Investment Options 7 Key Dates and Action Steps 12 2

3 A Special Note for Former Employees, Alternate Payees, and Plan Beneficiaries: If you are a former employee, alternate payee, or beneficiary with an account balance in the Plan, some of the information enclosed may not apply to you. However, you will be affected by the upcoming transition, so please read this material carefully. Important notice concerning your rights under the USANA Health Sciences 401(k) Plan: This notice is to inform you that the USANA Health Sciences 401(k) Plan will be moving to Fidelity. Certain Plan services will be temporarily unavailable in order to implement this change. These materials, as well as information about the investment options available in the Plan, can be viewed electronically at 3

4 Activity Calendar Please review this activity calendar to understand how your account may be affected during the transition period. To ensure that all information is transferred accurately from your current Plan account at Digital Retirement Solutions, Inc. to your new Plan account at Fidelity, there will be a period of time when you will be unable to direct or diversify investments in your individual accounts, obtain a loan from the Plan, or obtain a distribution from the Plan. This period during which you will be unable to exercise these rights otherwise available under the Plan is called a blackout period. Whether or not you are planning retirement in the near future, we encourage you to carefully consider how this blackout period may affect your retirement planning, as well as your overall financial plan. The blackout period for the Plan is expected to begin on October 5, 2017, and end during the week of November 19, During these weeks, you can determine whether the blackout period has ended by contacting the Fidelity Retirement Benefits Center at During the blackout period, you will be unable to direct or diversify the assets held in your Plan account. For this reason, it is very important that you review and consider the appropriateness of your current investments in light of your inability to direct or diversify those investments during the blackout period. For your long-term retirement security, you should give careful consideration to the importance of a well-balanced and diversified investment portfolio, taking into account all your assets, income, and investments. You should be aware that there is a risk to holding substantial portions of your assets in the securities of any one company, as individual securities tend to have wider price swings, up and down, in short periods of time than investments in diversified funds. Stocks that have wide price swings might have a large loss during the blackout period, and you would not be able to direct the sale of such stocks from your account during the blackout period. If you have any questions concerning this blackout, you should contact Matt Hauck at 3838 W. Parkway Blvd., Salt Lake City, UT or at

5 If you would like to make any changes to your account at Digital Retirement Solutions, Inc. before the start of the blackout period, please go online at or call KEY DATES* October 5, 2017 October 6, 2017, at 11 a.m. MT October 11, 2017, at 2 p.m. MT October 12, 2017 During the week of November 19, 2017 October 2017 February 2018 PLAN ACTIVITY/ACTION STEPS BLACKOUT PERIOD BEGINS Return all necessary paperwork to Digital Retirement Solutions, Inc. to process a loan or distribution before the blackout period begins. Please allow enough time to request, receive, complete, and return the paperwork to Digital Retirement Solutions, Inc. before this deadline. This is the last day at Digital Retirement Solutions, Inc. to: Enroll in the Plan. Change your future contribution rate and how contributions will be invested. Request an exchange between investment options. Check your account balance. Your account balances are valued at the close of the market. Your account balances are scheduled to transfer to Fidelity. Review the Investment Options section of this guide to learn how your current investment lineup may change as a result of the transition. BLACKOUT PERIOD ENDS The blackout period is expected to end during this week, and the Fidelity Retirement Benefits Center and Fidelity NetBenefits website will open for all Plan services. You will be notified when the blackout period has ended and you can: Log on to NetBenefits at to set up your username and password. On NetBenefits, you can: Review your account balances Access investment option descriptions Enroll in the Plan Research investment performance Request changes to your Request a loan or distribution account Call to speak with a Fidelity representative who can answer questions and walk you through any transaction you want to make in your account. Choose your beneficiaries. Beneficiary information currently on file will not transfer to Fidelity. You can designate your beneficiaries at or call for help or to request a beneficiary form. Final account statement from Digital Retirement Solutions, Inc. will be provided. First quarterly statement is available online from Fidelity. Compare Fidelity s statement with your final account statement from Digital Retirement Solutions, Inc. Contact Fidelity with any questions. Account statements for the Plan are available online at and will not be automatically mailed to your home. To change your mail preferences and request that statements be mailed to your home address, call Fidelity at or log on to NetBenefits at Simply click Profile, then Preferences. *The timing of the plan changes and transition period, including any asset reallocations, described within this brochure depends on a variety of factors, which may include the timing and accuracy of the transfer of data, receipt of instructions, and receipt of assets. Changes in any of these factors may result in changes to the timing of the delivery of services, the transition period, and/or the dates on which, and thus the prices at which, assets in your account are sold and/or reinvested. 5

6 Transition Highlights At USANA Health Sciences, Inc., we believe in offering a strong benefits program. Together with Fidelity, we ll provide a new level of service and commitment to help you prepare for retirement. NetBenefits website Beneficiary designations NetBenefits is Fidelity s comprehensive website dedicated to retirement planning. Here is where you will manage your account, make decisions on your investment choices, and find interactive tools and calculators to help you better prepare to meet your retirement savings goals. Choose your beneficiaries. Beneficiary information currently on file will not transfer to Fidelity. With Fidelity s Online Beneficiaries Service, you can designate your beneficiaries, receive instant online confirmation, and check your beneficiary information virtually any time. Log on to NetBenefits at or call for help or to request a beneficiary form. Your payroll contribution amount will continue and transfer to Fidelity. Payroll contributions Outstanding loans At Fidelity, contributions can be made in half percent increments (e.g., 1%, 1.5%, 2%, 2.5%). Any outstanding loan balances in the USANA Health Sciences 401(k) Plan will transfer to Fidelity. If you are currently an active participant in the Plan, you will continue to repay your loan(s) in the USANA Health Sciences 401(k) Plan in the same manner as you have with Digital Retirement Solutions, Inc. The transition will not affect the terms or length of your loan(s). 1 1 Loan repayments received during the blackout period will be invested in the Fidelity Government Money Market Fund until the blackout period ends. At that time, loan repayments and any associated earnings will be posted to your account according to your investment elections on file with Fidelity. If you do not have any elections on file, your loan repayments and any associated earnings will be invested in the American Funds Target Date Retirement Funds Class R-6. You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund s sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Fidelity s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors. 6

7 Investment Options Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. Overview The Plan gives you a choice of investment options that allow you the flexibility to build your own strategy to meet your needs both long and short-term. After the transition, the Plan s investment lineup will include many of the current options and some new investment choices. Depending on which funds you currently invest in, some of your investments may change. While many accounts may need to be liquidated and reinvested in the new investment option, USANA Health Sciences, Inc. may determine that a reregistration, or in-kind transfer, is appropriate. Please be aware that the transfer methodology may vary by individual investment option, and certain options may be out of the market for a day or more while others remain fully invested during the transition. What you need to do Now is a good time to look at your situation and decide whether changes might be appropriate to better align your investment approach with your retirement goals. Before making your investment decisions, it is important that you become familiar with the various options in the Plan. Additional information regarding each investment option s risk, as well as its strategy and objective, can be obtained on the Plan s transition website at Please consider all investment information before choosing your investments. For an explanation of your rights to direct investments, any Plan restrictions, and a description of the types of fees and expenses associated with your Plan account, refer to the Participant Disclosure Notice. The Plan is intended to be a participant-directed plan as described in Section 404(c) of ERISA, which means that fiduciaries of the Plan are ordinarily relieved of liability for any losses that are the direct and necessary result of investment instructions given by a participant or beneficiary. 7

8 INVESTMENT OPTIONS AS OF OCTOBER 12, 2017 Stock Investment Options American Funds New World Fund Class R-6 American Funds SMALLCAP World Fund Class R-6 American Funds Washington Mutual Investors Fund Class R-6 Eagle Mid Cap Growth Fund Class R6 Fidelity 500 Index Fund - Premium Class Fidelity Mid Cap Index Fund - Premium Class Fidelity Small Cap Index Fund - Premium Class Fidelity Total International Index Fund - Premium Class 2 Invesco Diversified Dividend Fund Class R6 Janus Henderson International Opportunities Fund Class I Janus Henderson Triton Fund Class I Nuveen Real Estate Securities Fund Class R6 The Hartford Growth Opportunities Fund Class Y Undiscovered Managers Behavioral Value Fund Class L USANA Health Sciences, Inc. Common Stock Victory Sycamore Established Value Fund Class R6 Balanced/Hybrid Investment Options American Funds American Balanced Fund Class R-6 Principal Diversified Real Asset Fund Class R-6 Bond Investment Options Prudential Total Return Bond Fund Class Z Templeton Global Bond Fund Class R6 Stable Value Investment Option Wells Fargo Stable Value Fund Class C Target Date Investment Options American Funds 2010 Target Date Retirement Fund Class R-6 American Funds 2015 Target Date Retirement Fund Class R-6 American Funds 2020 Target Date Retirement Fund Class R-6 American Funds 2025 Target Date Retirement Fund Class R-6 American Funds 2030 Target Date Retirement Fund Class R-6 American Funds 2035 Target Date Retirement Fund Class R-6 American Funds 2040 Target Date Retirement Fund Class R-6 American Funds 2045 Target Date Retirement Fund Class R-6 American Funds 2050 Target Date Retirement Fund Class R-6 American Funds 2055 Target Date Retirement Fund Class R-6 American Funds 2060 Target Date Retirement Fund Class R-6 TICKER SYMBOL RNWGX RLLGX RWMGX HRAUX FUSVX FSCKX FSSVX FTIPX LCEFX HFOIX JSMGX FREGX HGOYX UBVLX USNA VEVRX RLBGX PDARX PDBZX FBNRX N/A RFTTX RFJTX RRCTX RFDTX RFETX RFFTX RFGTX RFHTX RFITX RFKTX RFUTX 2 There is a short-term redemption fee of 1.00% for fee-eligible shares held less than 90 days. 8

9 Investment options that are changing* When the market closes at 2 p.m. MT on October 11, 2017, several investment options offered through the Plan will no longer be available. As a result, current account balances and future contributions will transfer to the new investment options on October 12, Once the blackout period has ended, expected to be the week of November 19, 2017, all Plan services will be available, including the ability to make investment exchanges within your account. EXISTING INVESTMENT OPTION WITH DIGITAL RETIREMENT SOLUTIONS, INC. AS OF 2 P.M. MT OCTOBER 11, 2017 TICKER SYMBOL NEW INVESTMENT OPTION WITH FIDELITY, EFFECTIVE AT CLOSE OF BUSINESS OCTOBER 12, 2017 TICKER SYMBOL Vanguard 500 Index Fund Admiral Class VFIAX Fidelity 500 Index Fund - Premium Class FUSVX Vanguard Mid-Cap Index Fund Admiral Shares VIMAX Fidelity Mid Cap Index Fund - Premium Class FSCKX Vanguard Small-Cap Index Fund Admiral Shares VSMAX Fidelity Small Cap Index Fund - Premium Class FSSVX Vanguard Total International Stock Index Fund Admiral Shares VTIAX Fidelity Total International Index Fund - Premium Class 3 FTIPX 3 There is a short-term redemption fee of 1.00% for fee-eligible shares held less than 90 days. 9

10 Investment options that are not changing The current investment options listed below will remain in the Plan. Any balances you have invested in these investment options as of October 11, 2017, will transfer to the same funds (referred to as an in-kind transfer). Future contributions will continue to be invested in these funds. CURRENT INVESTMENT OPTIONS American Funds 2010 Target Date Retirement Fund Class R-6 American Funds 2015 Target Date Retirement Fund Class R-6 American Funds 2020 Target Date Retirement Fund Class R-6 American Funds 2025 Target Date Retirement Fund Class R-6 American Funds 2030 Target Date Retirement Fund Class R-6 American Funds 2035 Target Date Retirement Fund Class R-6 American Funds 2040 Target Date Retirement Fund Class R-6 American Funds 2045 Target Date Retirement Fund Class R-6 American Funds 2050 Target Date Retirement Fund Class R-6 American Funds 2055 Target Date Retirement Fund Class R-6 American Funds 2060 Target Date Retirement Fund Class R-6 American Funds American Balanced Fund Class R-6 American Funds New World Fund Class R-6 American Funds SMALLCAP World Fund Class R-6 American Funds Washington Mutual Investors Fund Class R-6 Eagle Mid Cap Growth Fund Class R6 Invesco Diversified Dividend Fund Class R6 Janus Henderson International Opportunities Fund Class I Janus Henderson Triton Fund Class I Nuveen Real Estate Securities Fund Class R6 Principal Diversified Real Asset Fund Class R-6 Prudential Total Return Bond Fund Class Z Templeton Global Bond Fund Class R6 The Hartford Growth Opportunities Fund Class Y Undiscovered Managers Behavioral Value Fund Class L USANA Health Sciences, Inc. Common Stock Victory Sycamore Established Value Fund Class R6 Wells Fargo Stable Value Fund Class C TICKER SYMBOL RFTTX RFJTX RRCTX RFDTX RFETX RFFTX RFGTX RFHTX RFITX RFKTX RFUTX RLBGX RNWGX RLLGX RWMGX HRAUX LCEFX HFOIX JSMGX FREGX PDARX PDBZX FBNRX HGOYX UBVLX USNA VEVRX N/A 10

11 Are you invested in the USANA Health Sciences, Inc. Common Stock? The USANA Health Sciences, Inc. Common Stock ( stock ) will remain an investment option in the Plan; it will be reregistered (transferred in-kind) and remain fully invested during the transition. An important change is being made to the stock in your Plan account. Please read below. Real Time Trading The stock will be converted from a unitized stock fund to a real time traded stock fund. With real time traded stock funds, when you make a trade, the order is immediately sent to market during normal market hours 4 and is then eligible for execution (versus the use of a unitized stock fund where the fund is priced once daily). In the unitized stock fund, you currently hold units that contain shares of stock and a small portion of cash or other liquid investments. After the conversion from the unitized stock fund to real time traded stock takes place, you will only hold shares of USANA Health Sciences, Inc. stock in your Plan account. Number of Units/Shares Please be aware that the number of units that you currently hold in your Plan account will not equal the number of shares that you will hold in your Plan account after the conversion takes place. This is because the unitized stock fund has its own price per unit and the real time traded stock uses the market traded price per share, which is different. However, the total value of your holdings in stock will be the same immediately before the transition (in the unitized stock fund) as it will be immediately after the transition (in the real time traded stock). Please see the flyer, Understanding Real-Time Trading in Your Company Stock, for more information on how real-time trading works. 4 Response times may be subject to market conditions and system availability. On rare occasions, market conditions, system availability, or other circumstances may prevent Fidelity from accepting a Plan s real-time company stock exchange requests. In that event, no company stock exchange will be allowed and you will not be able to direct your Plan s real-time trade. You will be asked to try again at a later time. Neither the Plan, nor your employer, nor Fidelity will be responsible for any losses, damages, or missed price opportunities in these circumstances. 11

12 Key Dates and Action Steps Before the blackout period begins on October 5, 2017: Make any changes to your Digital Retirement Solutions, Inc. account. Call or go online to After the blackout period, scheduled to end the week of November 19, 2017: Log on to NetBenefits at to: Set up your username and password to access your account. Add your preferred address and elect edelivery. Enroll in the Plan, adjust your contribution amount, and/or change your investment elections. Enter or update your beneficiary information. Access information about each investment option available in the Plan, including investment risk, strategy, and objective. Review the fact sheet or prospectus, if available. Go mobile. Download the NetBenefits mobile app. Download a NetBenefits mobile app from the App Store, Google Play store, or Windows Store. Screenshots are for illustrative purposes only. System availability and response times may be subject to market conditions. The trademarks and service marks appearing herein are the property of their respective owners.all other trademarks and service marks are the property of FMR LLC or an affiliated company, and may be registered. Investing involves risk, including risk of loss. This document provides only a summary of the main features of the USANA Health Sciences 401(k) Plan, and the Plan document will govern in the event of any discrepancies. Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI FMR LLC. All rights reserved