Vanguard Brokerage Account IRA Excess …

1 Vanguard Brokerage Account IRA Excess Contribution Removal form To remove an Excess contribution from your traditional/rollover IRA, SEP-IRA, Roth IRA, or inherited IRA. This form enables you to remove your Excess Your removal of an Excess contribution is considered contribution and send the proceeds to your bank a distribution from your Account and may be subject Account , invest it in an existing nonretirement to taxes and penalties. Under most circumstances, Vanguard Brokerage Account or have it mailed to you. you must report it on your income tax return. If you must remove Excess contributions from more Read the following tax information before you than one type of Account , complete a separate complete the form . If you have questions about Vanguard Brokerage Account IRA Excess Contribution your personal situation, consult your tax advisor. Removal form for each type. Important tax information Removal of Excess To avoid a 6% federal penalty tax, you must remove the Excess contribution by the applicable by the correction IRS correction deadline, generally October 15 of the year following the tax year of your deadline contribution.

2 (SARSEPs are subject to a different correction deadline; see next page.) Earnings on the Excess contribution also must be removed by the correction deadline. Vanguard will calculate and remove any earnings on the Excess amount according to IRS. regulations. The earnings on the Excess are included in your income for the year in which your contribution was made. The earnings may also be subject to a 10% premature withdrawal penalty if you're under age 59 . Vanguard will send you IRS form 1099-R (or IRS form 1042-S if you're a nonresident alien) in the year after the Excess was removed. You may also need to file IRS form 5329 to indicate the additional 10% taxes due. Removal of Excess If you remove the Excess contribution after the applicable IRS correction deadline, the earnings after the correction stay in your Account and the Excess principal is generally subject to a 6% federal penalty tax each deadline year it remains in your Account . The penalty tax also applies to the year for which the Excess was contributed.

3 Because earnings stay in the Account , Vanguard won't calculate any earnings on the Excess . Vanguard will send you IRS form 1099-R (or IRS form 1042-S if you're a nonresident alien) in the year after the Excess was removed. You may also need to file IRS form 5329 to indicate the additional 6% taxes due. Carry forward to a Instead of removing your Excess contribution, you may correct an Excess after the applicable IRS. future tax year correction deadline by carrying it over to a subsequent tax year until the entire Excess amount is depleted. This option is available if you haven't met the contribution limit in the subsequent tax year. The Excess is generally subject to a 6% federal penalty tax for each year, including the year for which the Excess was contributed, until the entire Excess amount is depleted. If you wish to carry forward an Excess contribution, you don't need to complete this form or contact Vanguard .* Vanguard won't report the correction on an IRS form because the Excess isn't being removed from the Account .

4 You may need to file IRS form 5329 to indicate the additional 6% taxes due. You may want to see a qualified tax advisor. (over, for more information). *It's the taxpayer's responsibility to keep accurate records, and to report the Excess that was carried forward as a new contribution to the IRS. Vanguard doesn't record any distribution or change any year of contribution if an Excess is carried forward. Important correction deadlines Questions? To avoid the 6% federal penalty tax on the For more information about: Excess , you must remove the Excess by the Reporting requirements. Review IRS. applicable deadline. form 5329.*. Excess IRA contribution. If you're correcting an Tax consequences. Refer to the Vanguard Excess contribution to an IRA for any tax year, you Traditional and Roth IRA Disclosure Statement must withdraw the Excess amount by October 15 and IRS Publication 590.*. of the following year or face a federal penalty tax If you need assistance, call us at 800-662-2739.

5 On the amount of the Excess . You're allowed an automatic extension to correct the Excess (until Mailing information October 15) only if you've filed your income tax return by your filing deadline, including any Mail your completed form and any other required extensions. Generally, if you've already filed forms in the enclosed postage-paid envelope. your tax return, you must submit an amended If you don't have a postage-paid envelope, mail to: return for the year of the Excess contribution. Vanguard Excess salary deferral contribution. If you're Box 2600. correcting an Excess deferral to a SARSEP for any Valley Forge, PA 19482-2600. tax year, you must withdraw the Excess amount For overnight delivery, mail to: by April 15 of the following year or you may incur Vanguard additional taxes and penalties on the Excess . 455 Devon Park Drive You're NOT allowed an automatic extension to Wayne, PA 19087-1815. correct the Excess . Note: If you contributed to both a traditional/. rollover IRA and a Roth IRA in the same tax year for which you contributed an Excess amount, IRS.

6 Regulations require you to remove the Excess from your Roth IRA first. *To obtain IRS forms, go to or call 800-829-3676. form RCONXT. Clear All Vanguard Brokerage Account IRA Excess Contribution Removal form Effective July 2014. Use this form to remove an Excess contribution from your Vanguard Questions? Brokerage Account traditional/rollover IRA, SEP-IRA, Roth IRA, or Call 800-662-2739. inherited IRA. Complete a separate form for each Account type. If you need other forms, go to Don't use this form for a SIMPLE IRA or education savings Account (ESA), or for recharacterizations. Call us for the appropriate form . Important: Please hold off on making any trades in your IRA until your Excess removal is complete. If you have any open orders on holdings you want to remove the Excess from, we'll cancel those orders before removing the assets. Once the Excess removal is complete, you may contact us to reenter the orders. If there's a debit balance in your IRA, your Excess removal may be delayed.

7 Print in capital letters and use black ink. 1. Account owner information Vanguard Brokerage Account number (IRA to which you overcontributed) Enter all eight digits Name first, middle initial, last Provide full, legal name. >. Birth date mm/dd/yyyy E-mail address Daytime phone area code, number, extension Evening phone area code, number, extension If you've applied Mobile Mobile for an SSN or ITIN. but haven't Last four digits of Social Security number (SSN) or individual taxpayer Zip code received it, enter > ID number (ITIN). the date on which you applied. 2. Type of Account Check only one. Traditional/rollover IRA Roth IRA SEP-IRA employer Inherited traditional IRA Inherited Roth IRA SEP-IRA employee 1 of 5. form RCONXT. 3. Information about your Excess contribution Check one and provide your Account information. The deadline has passed for withdrawing Excess contributions from my IRA to avoid the 6% federal penalty tax. The deadline hasn't passed. Vanguard Brokerage Account with Excess contribution Account number Contribution date mm/dd/yyyy Tax year of contribution required Amount of Excess $.

8 4. How you want to remove the Excess You can remove the Excess contribution from any holding in the same IRA you listed in Section 1. Because of market fluctuations, the Account balances of the holdings you indicate below may be insufficient to remove the Excess and any attributable earnings. Therefore, you must also indicate an Additional holding for remaining Excess on page 3. Any applicable earnings/losses attributable to your Excess contribution will be applied proportionately across all holdings you indicate. Shares of Vanguard funds held in a Brokerage IRA may be moved in kind, or liquidated and moved as cash. Stocks, exchange-traded funds (ETFs), bonds, certificates of deposit (CDs), and non- Vanguard mutual funds must have already been sold and the proceeds swept to your money market settlement fund in order to be distributed to you in cash. If you don't want to sell the investments, you can make an in-kind distribution into your existing nonretirement Vanguard Brokerage Account .

9 Check only one. If you check this box, shares will > I want to remove the Excess from my money market settlement fund. be liquidated and transferred as cash. I want to remove the Excess from the following holding(s). Don't calculate earnings on the amount(s). Name of holding Fund # or ticker symbol Amount $. Name of holding Fund # or ticker symbol Amount $. Name of holding Fund # or ticker symbol Amount $. Name of holding Fund # or ticker symbol Amount $. Name of holding Fund # or ticker symbol Amount If you need $. more space to list Name of holding Fund # or ticker symbol Amount additional holdings, >. $. photocopy this page. Total amount $. Return ALL pages of this form , even if some sections are left blank. 2 of 5. form RCONXT. Additional holding for remaining Excess required Important: You must indicate an additional holding from which any remaining Excess and attributable earnings should be withdrawn. This additional holding must be in the same IRA from which you're removing the Excess .

10 You MUST provide Name, fund number, or ticker symbol of holding If you designate your money market settlement this information. > fund for this purpose, shares will be liquidated and transferred in cash. 5. Payment instructions after removal Check Option A, B, or C and provide any requested information. You can choose only one option for all your holdings. In-kind distribution option If you listed any stocks, ETFs, bonds, CDs, or non- Vanguard funds in Section 4, you MUST select Option A. You can also move Vanguard funds in kind. If you select Option A and indicated in Section 4 that you want to remove the Excess from your money market settlement fund, shares will be liquidated and transferred as cash. On a partial in-kind Excess removal, the value of the holdings will be determined by the previous day's closing price. On a full in-kind Excess removal, the value of the holdings will be determined by the current day's closing price. Option A. Move my holdings in kind to my nonretirement Vanguard Brokerage Account .