Roth Contribution Refund

February 7, 2019

To: Participant in the USS 401(k) Plan for USW-Represented Employees (“Plan”)

Subject: Refund of Roth 401(k) Contribution

Dear Colleague:

As part of the contract negotiations between U. S. Steel and the United Steelworkers of America, you received a $4,000 gross Signing Bonus in late 2018. That payment was correctly considered a Bonus-Type Payment in the USS 401(k) Plan and your pre-tax 401(k) contributions were properly deducted from such payment. You also have an after-tax Roth 401(k) election in place that applies to only Regular Earnings in the Plan and should not have been applied to the Signing Bonus. Unfortunately, an error occurred, and your Roth 401(k) election was incorrectly applied to the Signing Bonus payment resulting in errant contributions being made to your Plan account.

The Company is obliged to correct this error by removing this incorrect Roth 401(k) contribution from your account and refunding it to you. You will receive the contribution back to you in the form of an adjustment on your paycheck that is paid on February 19th. It will appear on your paystub as an Adjustment Deduction Refund and will not be subject to any further taxation or counted as eligible earnings for any benefit plan. No further action is required on your end.

Unfortunately, this error will result in the need for the Company to issue you a corrected wage statement (Form W-2c) for 2018. Roth contributions are listed in Box 12 of Form W-2 with a code of AA and returning these contributions to you results in a change to that amount only. No amount in any other box on your W-2 will change since Roth Contributions are post-tax deductions from your pay.  Expect this W-2c to be mailed to your home within 3-4 weeks of receiving this letter.  Please note that if you have already filed your 2018 personal income tax returns, you will not be required to file an amended return as a result of receiving this Form W-2c.

We apologize for this error and appreciate your patience as we rectify the matter. If you have any questions on this matter, please contact a Plan Administration representative at [email protected] or the Benefits Service Center at 1-877-877-4586 or 412-433-5790.

Thank you,

Savings Plan Administration