Huntington Ingalls Industries Savings Plan Summary Plan ...

1 2020 Huntington Ingalls Industries Savings plan Summary plan Description January 1, 2020 HII Savings plan 1 Table of Contents A GUIDE TO YOUR Huntington Ingalls Industries Savings plan .. 5 plan HIGHLIGHTS .. 6 YOUR Savings plan RESOURCES: UPOINT AND THE HIBC .. 7 COMMUNICATION PREFERENCES .. 9 ELIGIBILITY .. 9 PARTICIPATING Huntington Ingalls Industries BUSINESS UNITS/SUB-PLANS .. 10 HOW TO ENROLL IN THE Savings plan .. 10 AUTOMATIC ENROLLMENT FOR ACTIVE EMPLOYEES TRANSFERRED FROM NORTHROP GRUMMAN CORPORATION .. 10 AUTOMATIC ENROLLMENT FOR NEW HIRES AND REHIRES .. 10 ENROLLMENT FOR CURRENT EMPLOYEES .. 10 NAMING YOUR BENEFICIARY .. 11 YOUR CONTRIBUTIONS TO THE Savings plan .. 12 HOW MUCH YOU CAN CONTRIBUTE.

2 12 YOUR CONTRIBUTIONS AT A GLANCE .. 13 2020 IRS plan CONTRIBUTION LIMITS .. 14 CATCH-UP CONTRIBUTIONS FOR PARTICIPANTS AGE 50 AND OLDER .. 15 CONTRIBUTIONS FOR HIGHLY COMPENSATED EMPLOYEES (HCES) .. 15 IF YOU PARTICIPATED IN ANOTHER EMPLOYER S Savings plan .. 15 MAKE-UP CONTRIBUTIONS AFTER A MILITARY LEAVE OF ABSENCE .. 15 ROLLOVER CONTRIBUTIONS .. 16 CHANGING YOUR CONTRIBUTIONS .. 18 Huntington Ingalls Industries CONTRIBUTIONS TO THE Savings plan .. 18 COMPANY MATCHING CONTRIBUTIONS AND COMPANY RETIREMENT ACCOUNT CONTRIBUTIONS .. 18 Huntington Ingalls Industries MATCHING CONTRIBUTIONS BY SUB- plan .. 18 COMPANY MATCHING CONTRIBUTIONS IN SUB- plan A .. 19 COMPANY MATCHING CONTRIBUTIONS IN SUB- plan CC.

3 21 COMPANY MATCHING CONTRIBUTIONS IN SUB- plan D .. 21 COMPANY MATCHING CONTRIBUTIONS IN SUB- plan GG .. 21 COMPANY MATCHING CONTRIBUTIONS IN THE AMSEC SUB- plan .. 22 COMPANY MATCHING CONTRIBUTIONS IN THE CM (CAMBER) SUB- plan .. 22 COMPANY MATCHING CONTRIBUTIONS IN THE SN3 SUB- plan AND THE UPI SUB- plan .. 23 Huntington Ingalls Industries RETIREMENT ACCOUNT CONTRIBUTIONS .. 25 DEFINITION OF ELIGIBLE COMPENSATION .. 25 HOW YOUR ACCOUNT IS VALUED: UNITS AND UNIT VALUES .. 28 TRACKING AND MANAGING YOUR ACCOUNT BALANCE .. 28 VESTING .. 29 LOANS .. 30 OVERVIEW .. 30 LOANS TRANSFERRED FROM NGSP OR TSD Savings plan .. 30 IF YOU ARE CONSIDERING A LOAN .. 30 HOW TO REQUEST A LOAN .. 30 HII Savings plan 2 REQUIRED DOCUMENTATION.

4 31 HOW MUCH YOU CAN BORROW .. 31 ORDER IN WHICH YOUR ACCOUNT DOLLARS WILL BE BORROWED .. 32 TERMS OF YOUR LOAN .. 32 INTEREST RATE AND FEES .. 32 REPAYING YOUR LOAN .. 33 IF YOU HAVE AN OUTSTANDING LOAN WHILE ON A LEAVE OF ABSENCE .. 33 IF YOU DEFAULT ON YOUR LOAN .. 34 IF YOU HAVE AN OUTSTANDING LOAN AND YOU TRANSFER .. 34 IF YOU HAVE AN OUTSTANDING LOAN WHEN YOUR EMPLOYMENT ENDS .. 34 WITHDRAWALS .. 34 OVERVIEW .. 34 HOW TO REQUEST A WITHDRAWAL .. 34 ORDER IN WHICH ACCOUNT DOLLARS ARE WITHDRAWN .. 35 QUALIFIED ROTH 401(K) WITHDRAWALS .. 35 PARTIAL WITHDRAWALS .. 36 AGE 591 2 WITHDRAWALS .. 36 WITHDRAWALS AT AGE 701 36 HARDSHIP WITHDRAWALS .. 36 QUALIFIED RESERVIST WITHDRAWALS .. 39 MILITARY WITHDRAWALS.

5 39 RECEIVING YOUR Savings plan BENEFITS .. 39 WHEN BENEFITS ARE PAID TO YOU .. 39 OPTIONS FOR RECEIVING YOUR BENEFITS .. 39 AGE 701 2 40 HOW TO REQUEST A DISTRIBUTION OF YOUR BENEFITS .. 41 HOW TO REQUEST A ROLLOVER OUT OF THE plan .. 41 WHAT HAPPENS TO YOUR BENEFIT WHEN YOU DIE .. 42 TAXES AND YOUR Savings plan BENEFITS .. 42 PAYING TAXES ON YOUR Savings plan BENEFITS .. 42 TAXES ON WITHDRAWALS WHILE YOU ARE WORKING .. 43 TAXES ON DISTRIBUTIONS AFTER YOUR EMPLOYMENT ENDS .. 44 Roth 401(k) Contributions .. 44 Tax-deferred and Company Contributions .. 44 After-tax Contributions .. 44 Rollovers .. 44 TEN-YEAR AVERAGING RULES .. 45 IMPORTANT NOTE ABOUT TAXES .. 45 INVESTING IN THE Savings plan .

6 46 YOUR INVESTMENT CHOICES .. 46 ALLOCATING YOUR INVESTMENTS .. 46 Allocating New Contributions .. 46 Rebalancing Your Account .. 46 Restrictions on Retirement Path Portfolio or Core Investment Fund Transfers .. 46 Example: Core Investment Fund Transfer .. 47 Certain Transactions Are Not Affected .. 47 Schwab PCRA Restrictions .. 47 CHANGING YOUR INVESTMENT ELECTIONS .. 47 HII Savings plan 3 FIDUCIARY INVESTMENT RESPONSIBILITY .. 48 Information You Must Receive .. 48 Information You May Request .. 49 Confidentiality of Information Regarding the Huntington Ingalls Industries Stock Fund .. 49 BASICS OF INVESTING .. 50 OVERVIEW .. 50 DIVERSIFICATION .. 50 SAVING REGULARLY .. 50 TAX-DEFERRED COMPOUNDING.

7 50 RISK AND RETURN .. 50 ASSET CLASSES .. 51 BONDS .. 51 STOCKS .. 52 PASSIVELY MANAGED VS. ACTIVELY MANAGED FUNDS .. 52 THE RETIREMENT PATH PORTFOLIOS INVESTMENT OPTIONS .. 52 IS A RETIREMENT PATH PORTFOLIO RIGHT FOR YOU? .. 53 THE CORE INVESTMENT FUND OPTIONS .. 53 Overview of the Core Investment Fund Options .. 53 YOUR CORE INVESTMENT FUNDS AT A GLANCE .. 55 STABLE VALUE FUND .. 56 FIXED INCOME FUND .. 57 BALANCED FUND .. 57 EQUITY FUND .. 57 INTERNATIONAL EQUITY FUND .. 57 SMALL CAP FUND .. 58 EMERGING MARKETS EQUITY FUND .. 58 Huntington Ingalls Industries STOCK FUND .. 58 How the Huntington Ingalls Industries Stock Fund Works .. 58 Dividends .. 59 Diversifying Your Huntington Ingalls Industries Stock Fund Account Balance.

8 59 Distributions .. 59 Voting and Sale of Huntington Ingalls Industries Stock .. 59 A CLOSER LOOK: BENCHMARKS .. 60 OVERVIEW .. 60 FTSE 3-MONTH TREASURY BILL INDEX .. 60 BARCLAYS CAPITAL AGGREGATE BOND INDEX .. 60 MORGAN STANLEY CAPITAL INTERNATIONAL EAFE EUROPE, AUSTRALASIA, FAR EAST INDEX (MSCI EAFE ) .. 60 MSCI ACWI EX USA INDEX .. 60 RUSSELL SMALL CAP COMPLETENESS INDEX .. 60 MSCI EMERGING MARKETS INDEX (ND) .. 61 SCHWAB PERSONAL CHOICE RETIREMENT ACCOUNT (PCRA) .. 61 OVERVIEW .. 61 IF YOU ARE CONSIDERING THE SCHWAB PCRA .. 61 HOW THE SCHWAB PCRA WORKS .. 61 MUTUAL FUNDS AVAILABLE THROUGH THE PCRA .. 62 INVESTMENTS NOT AVAILABLE THROUGH THE PCRA .. 62 SPECIAL SCHWAB PCRA PROVISIONS.

9 63 HOW TO OPEN A SCHWAB PCRA .. 64 HII Savings plan 4 MANAGING YOUR SCHWAB PCRA .. 64 PLACING TRADE ORDERS .. 65 SCHWAB RESOURCES AT YOUR DISPOSAL .. 65 Monthly Statements .. 65 SPECIAL plan PROVISIONS FOR FORMER PARTICIPANTS OF PREVIOUS PLANS .. 66 SPECIAL plan PROVISIONS: PAYMENT OPTIONS .. 66 About the Payment Options .. 66 Annuity Account Definitions .. 67 SPECIAL plan PROVISIONS: BENEFITS WHEN YOU DIE .. 67 GENERAL plan INFORMATION .. 68 ADMINISTRATIVE FEES .. 68 FUTURE OF THE plan .. 68 plan 68 PENSION BENEFIT GUARANTY CORPORATION (PBGC) .. 68 TOP HEAVY RULES .. 68 CORPORATE OFFICER TRADING 69 PAYMENT OF BENEFITS TO ALTERNATE PAYEES .. 69 UNCLAIMED BENEFITS .. 69 INCAPACITY OF PARTICIPANT OR BENEFICIARY.

10 69 ADMINISTRATION .. 70 YOUR RIGHTS UNDER FEDERAL LAW (ERISA) .. 70 Your Rights to Receive Information About Your plan and Benefits .. 70 Prudent Actions by plan Fiduciaries .. 70 Enforcing Your Rights .. 71 Assistance with Your Questions .. 71 HOW TO CLAIM BENEFITS .. 71 ADMINISTRATION OF THE plan .. 72 plan DOCUMENTS .. 73 plan RULES .. 73 INFORMATION PROVIDED PURSUANT TO FEDERAL SECURITIES LAWS .. 73 GENERAL INFORMATION .. 73 EMPLOYEES WHO MAY PARTICIPATE IN THE plan .. 74 SECURITIES TO BE OFFERED .. 74 RESALE 74 INVESTMENT OF FUNDS .. 74 TAX EFFECTS OF plan PARTICIPATION .. 75 FORFEITURES AND PENALTIES .. 75 CHARGES, DEDUCTIONS, AND LIENS THEREFORE .. 75 REGISTRANT INFORMATION AND EMPLOYEE plan ANNUAL INFORMATION.