Grand Trunk 401(k) match, vesting and fees

All participants are fully vested in their account balance at the time of contribution, including the Company’s matching contribution and related earnings from such contributions, except for account balances under the DC Plan Feature. These account balances vest after three years of employment or earlier if the participant reaches normal retirement age, as defined.

Eligible union employees may participate in the Plan any time on or after their date of hire while the Plan has an “automatic enrollment feature” permitting employers to automatically enroll new non-union hires or employees promoted into management. Eligible new management employees are automatically enrolled in the Plan and treated as having elected to defer 3% of their eligible earnings, unless they make an affirmative election to decline participation in the Plan or to change their deferral percentage.

A Roth 401(k) option allows participants to make contributions on an after-tax basis, earn tax-free investment returns and receive tax-free withdrawals. The Company will match Roth 401(k) contributions based on the same formula as for pre-tax 401(k) contributions. Consistent with provisions established by the IRS, the Plan’s limit for pre-tax/Roth contributions by a participant is $23,000 for 2024. Participants who are at least age 50 by the end of a particular plan year and have contributed the maximum 401(k) deferral amount allowed under the Plan for that year are eligible to contribute an additional portion of their annual eligible earnings on a before-tax/ Roth basis as “catch-up” contributions, up to the annual IRS limit of $7,500 for 2024.

Participants may borrow from their accounts by taking one loan with a minimum amount of $1,000, and a maximum amount of $50,000, reduced by the participant’s highest outstanding loan balance in the prior one-year period (if any) or 50% of their vested account balance. Participants may not borrow from their account balance under the DC Plan Feature. General purpose loans must be repaid within 5 years; if the funds are used to construct or purchase a primary residence, funds must be repaid within 10 years. The interest rate on the loans is equal to the prevailing prime rate as of the beginning of the calendar quarter in which the participant applies for the loan plus 1%, which ranged from 4.25% to 9.5% for loans outstanding at December 31, 2024. Principal and interest are paid in equal installments through employee payroll deductions. Participants may prepay the entire outstanding loan balance at any time without penalty.