401(K) PLAN FOR SCHEDULED EMPLOYEES - VANGUARD (BNSF NON-SALARIED EMPLOYEES 401(K) RETIREMENT PLAN) WE ARE BNSF. 401(k) Plan for Non-Salaried Employees 2 CONTENTS HOW THE PLAN WORKS IN BRIEF .............................................................................................................. 4 Investing in Your Own Future ................................................................................................................... 4 Company Contributions ............................................................................................................................ 4 You Direct the Investment of Your Account ............................................................................................. 4 Accessing Your Funds Before Retirement ................................................................................................. 5 Survivor Benefit......................................................................................................................................... 5 Portability and Vesting .............................................................................................................................. 5 PURPOSE OF THIS SPD ................................................................................................................................ 5 Your “User’s Guide” .................................................................................................................................. 5 Improving Your Benefits “Mileage” ........................................................................................................... 5 The Fine Print ........................................................................................................................................... 5 ENROLLING IN THE PLAN ............................................................................................................................ 6 Who Is Eligible? ........................................................................................................................................ 6 How to Enroll (Setting Up Your Account) ................................................................................................. 6 HOW THE PLAN WORKS .............................................................................................................................. 7 Your Contributions .................................................................................................................................... 7 Before-tax Contributions ........................................................................................................................... 7 Roth Contributions .................................................................................................................................... 8 Non-Roth After-tax Contributions.............................................................................................................. 9 “Catch-up” Contributions ........................................................................................................................... 9 Comparing the Types of Contributions You May Make .......................................................................... 10 Company Contributions .......................................................................................................................... 10 Other IRS Limits...................................................................................................................................... 11 Impact of Contributions on Other Benefits .............................................................................................. 12 Your Accounts......................................................................................................................................... 12 Your Investment Choices ........................................................................................................................ 13 Changing Your Contributions and Investment Choices .......................................................................... 14 Deadline for Trades in the BRK Class B Stock Fund ............................................................................. 14 20% Limit on BRK Class B Stock Fund Investments ............................................................................. 15 Purpose of Plan Loans and Withdrawals ................................................................................................ 15 Loans from Your Account ....................................................................................................................... 15 Withdrawals ............................................................................................................................................ 18 Vesting and Your Vested Interest ........................................................................................................... 19 Receiving Your Account (Distribution) .................................................................................................... 21 Payment Options .................................................................................................................................... 22 Taxation of Plan Distributions ................................................................................................................. 23 Rollover Contributions and Distributions ................................................................................................ 23 Your Beneficiary ..................................................................................................................................... 25 Claim and Appeal Procedures ................................................................................................................ 26 OTHER IMPORTANT PLAN PROVISIONS, RULES AND CONSIDERATIONS ................................................... 27 Future of the Plan ................................................................................................................................... 27 Qualified Domestic Relations Order (QDRO) Administration ................................................................. 27 “Top-Heavy” Rules .................................................................................................................................. 27 Liens ....................................................................................................................................................... 27 Military Provisions ................................................................................................................................... 28 ADMINISTRATIVE INFORMATION ............................................................................................................. 28 To Table of Contents To Defined Terms 401(k) Plan for Non-Salaried Employees 3 YOUR RIGHTS UNDER ERISA .................................................................................................................. 29 WHOM TO CONTACT FOR ASSISTANCE WITH QUESTIONS ..................................................................... 30 OFFICES OF THE EMPLOYEE BENEFITS SECURITY ADMINISTRATION, U.S. DEPARTMENT OF LABOR .............................................................................................................. 31 FREQUENTLY ASKED QUESTIONS AND ANSWERS ................................................................................... 32 DEFINED TERMS ........................................................................................................................................ 37 APPENDIX ................................................................................................................................................... 39 Eligible Employees ................................................................................................................................. 39 SUPPLEMENT TO THE BNSF RAILWAY COMPANY NON-SALARIED EMPLOYEES 401(K) RETIREMENT PLAN SUMMARY PLAN DESCRIPTION To Table of Contents To Defined Terms 401(k) Plan for Non-Salaried Employees 4 BNSF RAILWAY COMPANY NON-SALARIED EMPLOYEES 401(K) RETIREMENT PLAN [401(K) PLAN FOR NON-SALARIED EMPLOYEES – VANGUARD] The Big Picture An Overview of the 401(k) Plan for Non-Salaried Employees Effective July 15, 2020 HOW THE PLAN WORKS IN BRIEF Investing in Your Own Future Defined terms: For the meaning of terms in Setting aside money from today’s paycheck for blue, click to see the Defined Terms section. tomorrow’s goals – such as your retirement – and choosing how to invest it makes sound Links: Click on blue italic items to link financial sense. The BNSF 401(k) Plan is a way directly the section indicated. for you to invest in your own future. The Plan gives you the flexibility to contribute Previous view: Return to your previous page by right clicking and selecting the from 1% to 25% of your current compensation “previous view” option. To add the handy into your 401(k) account. You also choose “previous view” button to your toolbar, open whether contributions are made from your your Adobe Reader tools and select Page before-tax compensation, which reduces your Navigation, then Previous View. current income taxes, or from after-tax compensation either as Roth contributions or BNSF’s contributions represent an immediate non-Roth contributions, or a combination. In return on the investments you make in your own addition, the Plan offers options to convert financial security. before-tax money