WITHHOLDING NOTICE - Vanguard

WITHHOLDING NOTICE

(Form W-4P, OMB # 1545-0074)

When a distribution from your retirement account is paid to you, you are responsible for paying the federal and applicable state income taxes on the taxable amount of the distribution. Depending on whether your distribution is eligible for rollover, you may be required to have tax withheld at the time of distribution.

Required tax withholding

Federal and applicable state taxes will be automatically withheld if any of these conditions apply:

? Your distribution is eligible to be rolled over (for example, distributions other than required minimum distributions, hardship distributions, or payments made over your lifetime or a specified period of 10 years or more) but is paid to you: 20 percent federal and applicable state tax will be withheld on the taxable amount of your distribution. You may choose to have more than 20 percent withheld by completing the information on the previous screen. If you do not make a selection, 20 percent federal income tax and applicable state tax will be withheld on the taxable amount of your distribution.

? You are a U.S. citizen or resident alien and are having the distribution delivered outside the U.S. or its possessions: You may not waive tax withholding. See IRS Publication 505, Tax Withholding and Estimated Tax, for details.

? You are a nonresident alien: Your distribution is generally subject to a federal income tax withholding rate of 30 percent under Internal Revenue Code Section 1441, on the taxable amount of the distribution. A reduced withholding rate, including exemption, may apply if there is a tax treaty between your country of residence and the United States and you submit Form W-8 BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. The Form W-8BEN must contain your taxpayer identification number. See IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, and IRS Publication 519, U.S. Tax Guide for Aliens, for details.

If you are a nonresident alien and will be providing Form W8-BEN for a possible reduced rate of withholding, you cannot complete this request online. Please see your authorized plan representative for a hard copy transaction form.

Optional tax withholding

You may opt out of withholding on the amount of your distribution that is not eligible for rollover, by completing the information on the previous page. If you do not make a selection, 10 percent federal income tax and applicable state tax will be withheld on the taxable amount of your distribution. You can choose to have federal and applicable state taxes withheld if the following condition applies:

? Your distribution is not eligible to be rolled over (for example, required minimum distributions, hardship distributions, or payments made over your lifetime or a specified period of 10 years or more). Even if you do not have income tax withheld, you are responsible for payment of income tax on the taxable amount of your distribution. You may be subject to tax penalties under the estimated tax payment rules if your payments of estimated tax and withholding, if any, are not adequate. If you choose to have taxes withheld, the amount of your distribution will be reduced by the amount of tax withheld.

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