Vanguard Section 403(B)(7) Plan Template Page 3
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3After-Tax Balance
Please be advised that all or a portion of your after-tax balance is eligible to be rolled over to a traditional IRA or to a qualified plan (excluding
403(b) and 457 plans), subject to the receiving plan's provisions. You may also elect to have all or a portion of the after-tax balanced mailed
directly to you.
Payment Instructions
Cash - By selecting this option you will receive your entire eligible cash balance.
Direct Rollover to Vanguard traditional IRA - By selecting this option you may choose to have all or a portion of your eligible balance
rolled over to a Vanguard traditional IRA. Please complete a Vanguard IRA Adoption Agreement.
Other Eligible Retirement Plan - By selecting this option you may have all or a portion of your eligible cash balance rolled over to
a traditional IRA or other eligible employer plan as described in the accompanying Special Tax Notice Regarding Plan Payments.
In addition, it is your responsibility to open an account at the receiving institution prior to initiating your direct rollover through Vanguard.
Installments - By selecting this option you will receive a series of payments over a period of time.
Vanguard 403(b)(7) Custodial Account
Notice of Joint and Survivor Annuity Rights
By law, your Vanguard 403(b)(7) Custodial Account is required to be distributed in the form of a qualified joint and survivor annuity, unless
you (and your spouse, if married) waive this form of benefit. The Employee Retirement Income Security Act (ERISA) mandates that if you
do not waive your right to a qualified joint and survivor annuity, your distribution must be used to purchase an annuity contract.
Furthermore, if your are married, your qualified joint and survivor annuity contract must provide you with regular payments for the rest of
your life and, if your spouse survives you, your spouse must receive not less than 50 percent of the payments you were receiving for the
rest of his or her life. If you are not married, the annuity contract must provide you with regular payments for the rest of your life, with no
survivor benefits payable upon your death.
If you do not wish to receive your Vanguard 403(b)(7) Custodial Account in the form of a qualified joint and survivor annuity (as described
above), you may elect to waive this form of benefit by completing the Waiver of Qualified Joint and Survivor Annuity in Section 3 of this
form. If you are married, your spouse must consent to your election to waive the qualified joint and survivor annuity, and your spouse's
consent must be witnessed by a notary public or plan representative. You may revoke any prior election to waive the qualified joint and
survivor annuity form of benefit at any time prior to the distribution of your account.
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