BLACKHAWK EMPLOYEE RETIREMENT PLAN

BLACKHAWK EMPLOYEE RETIREMENT PLAN

Whether your retirement is 40 years away or on the horizon, it is important to take stock of your situation and take charge. Industry professionals estimate that some Americans will spend nearly one third of their lives in retirement. Fortunately, the BlackHawk Industrial Distribution, Inc. 401(k) Plan offers the tools, education and investment options to help you prepare for retirement. 2

Enrollment Overview BlackHawk Industrial Distribution, Inc. 401(k) Plan What do you see yourself doing when you retire? Maybe you re looking forward to spending more time with your family and sharing your hobbies with others. Or maybe you hope to travel the world! For the vast majority of Americans, Social Security benefits will not provide enough income to cover expenses and make retirement comfortable. When you re deciding how much to contribute towards your retirement, a good place to start is deciding how you ll use your retirement account. Will your retirement account be your primary source of income or fun money to supplement your lifestyle? The answer will have an impact on how much you decide to contribute towards retirement. How to get started! When it comes to retirement, it can be easy to think that you will have plenty of time later to make important decisions about your future. To have a better chance of reaching your retirement goals, it is important to make key decisions today. BlackHawk Industrial has put you on a good path by offering a retirement plan, but now it is up to you to take advantage of this important benefit. Read on for more information about the five steps you can take now to enroll in your plan. 1. Review the booklet. Yes, all of it! 2. Log on to PayCom at www.paycom.com 3. Choose how you want to contribute: Roth or Traditional 401(k) 4. Pick a percentage of your income to contribute (NOTE: In order to take full advantage of the BlackHawk Industrial match, you need to select at least 6%) 5. Funds will automatically go into your Qualified Default Investment Alternative (T. Rowe Price Target Date Funds). If you want to change your funds selection, go to www.blackhawkid401k.com and click on Enroll or View Your Account. Target Date Funds are designed for people who plan to retire and begin taking withdrawals during or near a specific year. These funds use a strategy that reallocates equity exposure to a higher percentage of fixed investments; the funds will shift assets from equities to fixed-income investments over time. As a result, the funds become more conservative over time as you approach retirement. It s important to remember that no strategy can assure a profit or prevent a loss in a declining market and the principal value of the Target Date Funds is not guaranteed at any time, including the target date. Target Date Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Target Date Funds, an investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds. The principal amounts invested into these funds are not guaranteed at any point and may lose value. PayCom is not an affiliate of American United Life Insurance Company (AUL) and is not a OneAmerica company. 3

Auto Enrollment Opt-out or be enrolled at 3 percent You may have heard the saying, If you don t do it, nobody will. However, that doesn t apply to the BlackHawk Industrial Distribution, Inc. 401(k) Plan. If you do not make a selection or opt-out of your 401(k) plan within 30 days after your effective date you will be enrolled automatically. This means that 3 percent of your wages, salary, earnings (and bonus, if applicable) will be invested in the appropriate T. Rowe Price target date option. The specific model for any individual may be based on the individual s age. The plan also provides for an automatic increase in your contribution percentage. If you remain automatically enrolled in the plan, your deferral will be increased by 1 percent annually until it reaches 6 percent. Of course, you can opt out of being automatically enrolled in the plan at any time by logging in at www.blackhawkid401k.com and making your selection! BlackHawk Industrial recognizes the importance of preparing for your future goals. That is why they provide this retirement plan as an important benefit to you. Through this plan, contributions are taken out of your check with payroll deduction. It s like paying yourself first each payday, and because payroll deductions occur automatically, you don t have to do anything. Also, contributing to your retirement plan will not affect the calculation of your Social Security benefits, if applicable. It is a smart idea to participate in your retirement plan as soon as possible, which is why your plan has an auto-enrollment feature. By contributing right away, your account may have more time to weather ups and downs in the stock market. The benefits of preparing today! Compounding is a term that describes when an initial investment generates a gain that is reinvested and then experiences additional earnings. When the new balance (the original investment plus the gain) generates further earnings, the initial gain increases the total return of your initial investment. When those gains are reinvested, future positive earnings are further compounded. Compounding example Thanks in part to compounding, the difference between the contributions to Michael s account and his actual account balance at retirement is $151,149! Michael Age 25 $100 Monthly contribution over 40 years Total contribution $48k = $199,149 at retirement Note: This hypothetical investment return and fictitious name is designed to demonstrate the impact of compounding returns and is not indicative of any particular investment or performance. Hypothetical returns assume reinvestment of earnings and a 6 percent average return on investment. Actual returns or principal value will vary. Balance shown is before reduction of taxes. An investor should consider his or her current and anticipated investment horizon and income tax bracket when making an investment decision, as the example may not reflect those factors. 4

Enrollment Overview Plan Overview Do I want Roth or 401(k)? Your plan offers both options, which are great ways to invest, but both are very different. The choice really comes down to when you want to pay your taxes. Uncle Sam is going to get them now or later. If you pick Roth, you pay the taxes now. With traditional 401(k) you pay taxes when you take your money. How much can I contribute? Through payroll deduction you can contribute up to 100 percent of your wages, salary, earnings (and bonus, if applicable), up to IRS allowable limits. Visit www.irs.gov for more information on the IRS limits for the current calendar year. How much does BlackHawk contribute? BlackHawk matches your first 1 percent of contribution 100 percent, and 50 percent on the next 5 percent. If you want every dime of match money, you will need to contribute 6 percent. Do I get to keep all the money if I am no longer working at BlackHawk? You always get to keep your money. However, you are vested in two years. This means that you get to keep 100 percent of the match money after you have worked for BlackHawk two years. After one year, you can keep 50 percent of the match money. What do I do with my money from a previous employer? You can rollover money from any qualified retirement plans. Talk to your BlackHawk Benefits Manager for more information. Who do I contact with specific questions? Contact your BlackHawk Benefits Manager for information regarding: Loans 401(k) payroll deduction errors General plan questions Rollover and separation forms Contact American United Life Insurance Company, a OneAmerica company at 1-800-249-6269 (Monday - Friday, 8 a.m. to 8 p.m. EST) for information regarding: Statement questions Website questions Withdrawal information Loan payoffs Taking Loans from Your Account Taking a loan from your retirement account is a personal decision. You should consider your options carefully and speak with a financial professional. Here are things to consider before taking a loan from your account... Your plan s specifications Before taking a loan from your account, please consider that your plan: Has a $75 fee to set up and maintain the loan Only allows you to take out one loan at a time Has a minimum account balance of $2,000 that you need to have before taking a loan. The minimum loan that can be taken is $1,000 and you can only take up to 50% of your account balance. Allowable reasons for taking a loan Medical expenses not covered by insurance Prevent eviction or foreclosure Funeral expenses Catastrophic event Purchase a primary residence College tuition Facts and extreme circumstances as approved through committee by your BlackHawk Benefits Manager Possible taxes and penalties If you are not able to pay back the remaining balance during the specified loan repayment period or you change employers and are not able to pay it back at that time, that amount will be considered a distribution from your account. You would have to pay taxes and possible penalties on the amount you still owe. Potential for missed investment returns You could be losing money if the rate of return your remaining invested contributions are earning is higher than the interest rate on your loan (the amount you are paying yourself back each month). Other options for borrowing Your retirement account is meant for long-term financial goals, rather than short-term objectives. This account should be a last option for borrowing money. There may be alternatives to cover your financial needs. To get approval for taking out a loan, please contact your BlackHawk Benefits Manager. 5

Managing Your Account Online American United Life Insurance Company (AUL), a OneAmerica company, has a wonderful participant website which makes it easy to maneuver through your account. We encourage you to use this site. Here are some of the benefits... Look at your account activity and balance Once logged in to your account, you can see your entire account balance broken down either by the amount allocated to each investment option or by the different contribution types (such as your own contributions from your pay, a rollover from another retirement plan or an employer match). You can also review your account activity for a selected period of time. Review or change personal information You are able to view and change personal information such as your address, contribution deferral amount and beneficiary information. In addition, you have the ability to manage your password and security information to help protect your information. Access plan details Specific information about your plan s features and requirements are available under My Plan. This includes summary and important documents. View investment information By choosing Current Elections under the Investment Options menu, you are able to see the investment options into which your contributions are currently allocated. Clicking on the name of an investment will open an investment option summary page for that option can be accessed by choosing Performance. Transfer balance and change future elections As your investment strategy changes, you have the ability to transfer your current account balance to different investment options and revise your future investment elections online. Transferring current account balance: Choose Transfer under the Account Balance option to transfer your current account assets to different investment options by dollar amount, percent of your account balance, automatic rebalancing, dollar cost averaging or interest sweep transfer. Changing future investment elections: This option, which can be accessed under the Investment Options menu, shows you the investment options available under your plan, along with the percentage of your future contributions you currently have elected to invest in each option. To change this allocation, enter a new percentage in the Reallocated Percentage column. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary or investment advice. Visit www.blackhawkid401k.com to access your account and to learn more about retirement preparation. 6

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Your future. Our goal. Note: Non-registered group annuity contracts are issued by American United Life Insurance Company (AUL), One American Square, Indianapolis, IN 46206, 1-800-249-6269. Neither AUL nor its representatives provide tax, legal, fiduciary, or investment advice. Retirement plans from American United Life Insurance Company (AUL) are funded by an AUL group annuity contract. While a participant in an annuity contract may benefit from additional investment and annuity related benefits under the annuity contract, any tax deferral is provided by the plan and not the annuity contract. Investing involves risk which includes potential loss of principal. About OneAmerica A national leader in the insurance and financial services marketplace for 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset based long-term care solutions and employee benefit plan products. Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources that are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit OneAmerica.com/companies. American United Life Insurance Company a OneAmerica company One American Square, P.O. Box 368 Indianapolis, IN 46206-0368 1-800-249-6269 www.oneamerica.com 2017 OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc. R-22865 03/20/17