UFPI UFP Industries Inc

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 11-K

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For the fiscal year ended December 31, 2020

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OR

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Commission file number:  0-22684

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UFP Industries, Inc. Employees' Profit Sharing

and 401(k) Plan

(Full title of the plan and the address of the plan, if different from that of issuer named below)

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UFP Industries, Inc.

2801 East Beltline NE

Grand Rapids, Michigan 49525-9736

(Name of issuer of the securities held pursuant to the plan and the address of its principal executive office)

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Table of Contents

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Financial Statements and Supplemental Schedules

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Years Ended December 31, 2020 and 2019

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Contents

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Report of Independent Registered Public Accounting Firm	3
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Financial Statements	​
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Statements of Net Assets Available for Benefits	4
Statements of Changes in Net Assets Available for Benefits	5
Notes to Financial Statements	8
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Supplemental Schedule	​
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Schedule H, Line 4i—Schedule of Assets (Held at End of Year)	13

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Statements of Net Assets Available for Benefits

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​	December 31
​	2020		​	2019
Assets	​	​	​	​	​
Investments, at fair value	$	432,430,373	​	$	345,502,073
Notes receivable from participants	​	13,130,797	​	​	11,874,083
Employer contribution receivable	​	3,295,288	​	​	2,984,859
Due from investment broker	​	-	​	​	798,565
Receivable from another qualified plan (Note 3)	​	30,446,257	​	​	14,458,097
Total Assets	$	479,302,715	​	$	375,617,677
Liabilities	​	​	​	​	​
Due to investment broker (equal to total liabilities)	​	(15,050)	​	​	-
Net assets available for benefits	$	479,287,665	​	$	375,617,677
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See accompanying notes.	​	​	​	​	​

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Statements of Changes in Net Assets Available for Benefits

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Table of Contents

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements

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1.	Description of the Plan

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General

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The following description of the UFP Industries, Inc. Employees’ Profit Sharing and 401(k) Plan (the Plan) provides only general information. Participants should refer to the Plan Document and Summary Plan Description, as amended, for a more complete description of the Plan’s provisions.

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Effective January 1, 2020, the plan name was changed to UFP Industries, Inc. Employees’ Profit Sharing and 401(k) Plan, formerly known as Universal Forest Products, Inc. Employees’ Profit Sharing and 401(k) Plan.

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Eligibility and Enrollment

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The Plan is a defined-contribution, profit sharing and 401(k) plan that provides tax-deferred benefits for substantially all eligible employees of UFP Industries, Inc. (Plan Sponsor) or other Participating Employers, excluding the employees of separate subsidiaries that maintain a similar defined-contribution plan and those covered under a collective bargaining agreement. The Plan is subject to the provisions of the Employee Retirement Security Act of 1974 (ERISA).

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All newly eligible employees are automatically enrolled in the Plan at a deferral level of 3% of eligible compensation.  Eligible employees are those who are 18 years or older, have completed 60 days of employment and are hired to work more than 180 days.

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Contributions

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Participants may voluntarily contribute up to 75% of their eligible compensation as a 401(k) contribution subject to certain regulatory limitations. Participant contributions to the Plan vest immediately.

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The Plan Sponsor contributes regular discretionary matching contributions and may contribute additional discretionary matching contributions. Regular discretionary matching contributions are made quarterly and were 25% of participant deferrals in 2020 and 2019, on the first 6% of each participant’s eligible compensation. Additional matching contributions were also provided to hourly participants for Plan Year 2020 and 2019. These amounts are not guaranteed, and may vary from year to year as the Plan Sponsor is not obligated to make such contributions.

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The Plan Sponsor may also contribute a discretionary profit sharing amount annually as determined by management and approved by the Plan Sponsor’s Board of Directors. The Plan Sponsor’s annual profit sharing contributions are allocated to participants who had at least 1,000 hours of service during the plan year and are allocated to each participant’s account in the same ratio that each participant’s total compensation for the Plan year bears to the total compensation of all participants for such year.  No discretionary profit sharing contributions were made in 2020 or 2019.

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements (continued)

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Employer contributions are subject to a vesting schedule as follows:

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The Plan was amended effective January 1, 2012 to be designated as an ESOP for those Participants with a portion of their account balance invested in the UFP Industries Inc. Stock Fund. This provision allows those Participants who are 100% vested the opportunity to elect to have the dividends on the employer stock fund paid to them in cash.

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Participant Accounts

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Participants may select from various investment options made available by the Plan. Each participant’s account is credited with the participant’s contribution, an allocation of the Plan Sponsor’s contribution, if any, Plan earnings and losses and certain administrative expenses. Earnings allocations are based on participant account balances, as defined in the Plan agreement.

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The vested portion of terminated and retired participants’ accounts are available for distribution following a separation from service. Forfeitures are used to offset the Plan Sponsor’s matching contributions and for reasonable administrative expenses. During 2020 and 2019, forfeitures of approximately $905,000 and $596,000, respectively, were used to offset the Plan Sponsor’s matching contributions.

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Participant Loans

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Participants may borrow from their account a minimum amount of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance, reduced by any outstanding loans as outlined in the Plan Document. Loan terms range from one to five years or up to 25 years for the purchase of a residence. The loans bear interest at a rate equal to the prime rate (3.25% at December 31, 2020) plus 2% calculated on a daily basis. Interest rates on outstanding loans ranged from 4.25% to 11.50% at December 31, 2020. 

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Payment of Benefits

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Before attainment of age 59½, participants may request in-service withdrawals from the Rollover balance within their account. Participants may also request an in-service withdrawal from their Salary Deferral balance in the event of a financial hardship, subject to certain limitations as defined by the Plan.  Once a participant attains age 59½, in-service withdrawals may be made from all contribution sources.

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Upon separation from service, a participant is eligible for a lump sum distribution of their full, vested account balance. Participants may elect to receive the distribution in a lump sum amount, a qualified rollover to another plan, or may defer their distribution until a later date. However, in the absence of an election, if the vested portion of a participant’s account is $1,000 or less, this amount will be paid as a lump sum distribution as soon as administratively allowable. Participants who incur a separation from service as a result of their death, Total Disability, or Retirement will be vested at 100% prior to their distribution.

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements (continued)

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CARES Act

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On March 27, 2020 the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was signed into law. The CARES Act allows retirement plans, among other things, to provide participants who are impacted by the coronavirus (as defined in the CARES Act) with greater access to their savings.

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Effective May 5, 2020, the Plan Sponsor implemented the following provisions under Section 2202 of the CARES Act:

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Qualified individuals may receive coronavirus-related distributions in an aggregate amount up to $100,000 from the participant’s account in the Plan.

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Loan payments may be suspended at a participant’s request until December 31, 2020.

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The maximum dollar amount for new loans taken between May 5 and September 23, 2020 for qualified Coronavirus relief was increased to the lessor of $100,000 or 50% of the participants vested account balance.

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Required Minimum Distributions have been postponed for Plan Year 2020 as allowed by the Act.

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Termination

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The Plan Sponsor intends to continue the Plan indefinitely, but reserves the right to terminate or amend the Plan at any time. In the event of termination of the Plan, all participants are automatically fully vested in the value of their accounts and will be paid in full.

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2.	Significant Accounting Policies

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Basis of Accounting

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The financial statements of the UFP Industries, Inc. Employees’ Profit Sharing and 401(k) Plan are presented on the accrual method of accounting.

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Use of Estimates

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The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect reported amounts. Although actual results could differ from these estimates, management believes estimated amounts recorded are reasonable and appropriate.

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Risks and Uncertainties

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The Plan utilizes various investment instruments. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.

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In March 2020, the World Health Organization categorized Coronavirus Disease 2019 (“COVID-19”) as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The COVID-19 pandemic has led to extreme volatility in financial markets and has affected, and may continue to affect, the market price of UFP Industries, Inc. common stock and other Plan assets.

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements (continued)

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Investment Valuation and Income Recognition

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The Plan’s investments are stated at estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

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Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability.  The Plan utilizes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.  The following provides a description of the three levels of inputs that may be used to measure fair value:

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Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

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Level 2 – Significant observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable or can be derived from or corroborated by observable market data by correlation or other means.

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Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

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The following valuation methodologies were used to measure the fair value of the Plan’s investments:

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Common Stock: Valued at quoted market prices in an exchange and active market in which the securities are traded.

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Money Market Fund: Valued at quoted market prices in an exchange and active market, which represent the net asset value (NAV) of shares held by the Plan.  The money market fund seeks to maintain a $1.00 NAV.

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Mutual Funds: Valued at quoted market prices in an exchange and active market, which represent the net asset values of shares held by the Plan.

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Common Collective Trust Funds: The fair value of participation units held in the Morley Stable Value Fund are based on net asset value, which is obtained on audited information reported by the issuer of the common collective trust at year-end, and is used as a practical expedient.

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The Plan’s valuation methods may result in a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  Although Plan management believes the valuation methods are appropriate and consistent with those participating in the market, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements (continued)

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The investment objective of the Morley Stable Value Fund is to provide preservation of capital, relatively stable returns consistent with its comparatively low risk profile, and liquidity for benefit-responsive payments. Withdrawals from the Morley Stable Value Fund for benefit payments and participant transfers to noncompeting options are made to plan participants promptly upon request but in all cases within 30 days after written notification has been received.  All plan sponsor-directed full or partial withdrawals are subject to a twelve month advance written notice requirement, though the Morley Stable Value Fund may waive this requirement at its discretion.

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The UFP Industries Inc. Stock Fund (the Fund), formerly known as Universal Forest Products Stock Fund, is tracked on a unitized basis. At December 31, 2020, the Fund consists of common stock of UFP Industries, Inc. (Plan Sponsor) and funds that are held in the Wells Fargo Government Money Market Fund that are sufficient to meet the Fund’s daily cash needs. Unitization of the Fund allows for daily trades. The value of a unit reflects the combined market value of the common stock and the Wells Fargo Government Money Market Fund held by the Fund.  At December 31, 2020 and 2019, 2,059,482 and 2,061,763 units, respectively, were outstanding with a value of $54.06 and $46.71 per unit, respectively.  

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Purchases and sales of securities are recorded on a trade date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.  Net appreciation and depreciation include the Plan’s gains and losses on investments bought or sold as well as held during the year.

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Notes Receivable from Participants

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Notes receivables from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent notes receivable from participants are deemed distributions based upon the terms of the Plan document.

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Payment of Benefits

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Benefits are recorded when paid.

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Concentration of Investments

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Included in investments at December 31, 2020 and 2019 are shares of the Plan Sponsor’s common stock with an aggregate fair value of $108,739,403 and $93,423,741, respectively.  This investment represents 25% and 27% of total investments at December 31, 2020 and 2019, respectively.  A significant decline in the market value of the Plan Sponsor’s stock would significantly affect the net assets available for benefits.

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Administrative Expenses

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Administrative expenses incurred in connection with the operations of the Plan are paid via certain investment and transactional fees which are borne by the Plan and applied to applicable participant balances. These fees are disclosed in the annual Fee Disclosure Notice and on individual account statements sent to all Plan participants. Substantially all of these expenses are paid to parties-in-interest of the Plan and are based on reasonable and customary rates for the related services. Certain administrative expenses not reflected in this report are paid directly by the Plan Sponsor.

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements (continued)

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3.	Transfers and Mergers

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As permitted by the Plan during 2020, funds totaling $881,993 were transferred from and $565,855 were transferred to the idX Corporation 401(k) Profit Sharing Plan (an affiliated plan), due to employee transfers.

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As permitted by the Plan during 2019, funds totaling $4,407 and $4 were transferred from the idX Corporation 401(k) Profit Sharing Plan (an affiliated plan) and the Shawnlee Construction LLC 401(k) Plan (an affiliated plan), respectively, due to employee transfers.  

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Effective on December 31, 2020, the idX Corporation 401(k) Profit Sharing Plan merged with the Plan. As a result, all assets of the idX Corporation 401(k) Plan (an affiliated plan) were transferred into the Plan. The idX Corporation 401(k) Plan no longer exists as a separate plan. The Plan has recorded a receivable from another qualified plan of $30,446,257 in the Statement of Net Assets Available for Benefits as of December 31, 2020.

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Effective on December 31, 2019, the Shawnlee Construction LLC 401(k) Plan merged with the Plan. As a result, all assets of the Shawnlee Construction LLC 401(k) Plan (an affiliated plan) were transferred into the Plan. The Shawnlee Construction LLC 401(k) Plan no longer exists as a separate plan. The Plan has recorded a receivable from another qualified plan of $14,458,097 in the Statement of Net Assets Available for Benefits as of December 31, 2019.

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4.	Investments

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The tables below set forth by level within the fair value hierarchy the Plan’s investments as of December 31, 2020 and 2019.

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* The investments in common/collective trusts are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Statements of Net Assets Available for Benefits.

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There have been no changes in the methodologies used at December 31, 2020 and 2019, and there have been no significant transfers in or out of Levels 1, 2 or 3.

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Table of Contents

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UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Notes to Financial Statements (continued)

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5.	Income Tax Status

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The Plan Sponsor has received a determination letter from the Internal Revenue Service dated March 17, 2017, stating that the Plan is qualified under section 401(a) of the Internal Revenue Code (the Code), and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Sponsor believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan, as amended, is qualified and the related trust is tax exempt.

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Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service.  The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

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Table of Contents

UFP Industries, Inc. Employees’ Profit Sharing and

401(k) Plan

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Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

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EIN #38-1465835 Plan #001

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December 31, 2020

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