Investment advisors caution strongly against ever taking money out of your Savings Plan. But one of the greatest benefits of 401(k) plans is that they give you the option to access your money if you face a critical need. Before doing so, you should consider the fees and taxes you could incur from a loan or early withdrawal and the long-term loss to your overall retirement portfolio, which may be difficult to recover.

Loans

Through its loan feature, the Northrop Grumman Savings Plan offers you access to your savings and gives you the opportunity to borrow against your account balance, up to certain limits, which are described in the Savings Plan Summary Plan Description. You repay the loan — including interest — to your own account.

Loan repayments are made through payroll deductions. As long as you are paid from a Company payroll system, you cannot revoke or cancel payroll deductions for the repayment of your loan. If payroll deductions cannot be processed for any reason, you must make your loan payments by check except as provided under the leave of absence rules in the Savings Plan Summary Plan Description. Your loan repayments are invested the same way as your other future contributions to the Savings Plan. You can learn more about loan and repayment options, interest and fees at My Benefits Access or call the Northrop Grumman Benefits Center (NGBC) at 1-800-894-4194 regarding the necessary paperwork.

Hardship Withdrawals

You may request a hardship withdrawal from the Savings Plan only if you already exhausted all of your other financial resources, including other available withdrawals and nontaxable loans through any plan at Northrop Grumman in which you have an account balance.

You may take a hardship withdrawal from your account for any of the following reasons:

• You, your spouse, your children, or your primary beneficiary(ies) incur extraordinary qualifying uninsured medical or dental expenses or need money to obtain qualifying medical care
• You purchase a primary residence (However, you may not take a hardship withdrawal to make mortgage payments)
• You, your spouse, your children, or your primary beneficiary(ies) are paying tuition and related educational fees for post-secondary education over the next 12 month
• You are preventing eviction from or foreclosure on the mortgage of your primary residence
• You incur qualifying expenses related to:
• Adoption of a child
• Custodial care of a family member
• Payment of extraordinary legal expenses
• A sudden catastrophe
• The death of your spouse, child, or primary beneficiary(ies)
• Tuition for remedial school for a dependent
• Prevention of imminent bankruptcy
• Payment of federal, state, and/or local income taxes for the previous year.

Remember: Before you take a hardship withdrawal from the Savings Plan, be sure to consider the penalties involved. The taxable portion of your hardship withdrawal is subject to 10% federal withholding and may be subject to a 10% tax penalty. In addition, many states have similar tax penalty requirements.

You can request a withdrawal from your Savings Plan account by logging on My Benefits Access or by calling the Northrop Grumman Benefits Center (NGBC) at 1-800-894-4194.