BANKUNITED 401(K) PLAN. SAFE HARBOR NOTIFICATION TO ELIGIBLE EMPLOYEES (includes Qualified Automatic Contribution Arrangement)

Transcription

1 Safe Harbor Notice and QDIA Notice BANKUNITED 4(K) PLAN SAFE HARBOR NOTIFICATION TO ELIGIBLE EMPLOYEES (includes Qualified Automatic Contribution Arrangement) This is an annual notice and only applies to the Plan Year beginning on January, 28. This notice covers the following points: Whether the Plan's automatic enrollment feature applies to you; What amounts will be automatically taken from your pay and contributed to the Plan; What other amounts the Employer will contribute to the Plan for you; and When your Plan account will be vested (that is, not lost when you leave your job), and when you can receive a distribution of your Plan account. You can find out more information about the Plan in the Plan's Summary Plan Description (SPD). You can obtain a copy of the SPD from the Plan Administrator. I. Employee deferral contributions You are allowed to defer a portion of your compensation to the Plan. These amounts are referred to as deferrals and are held in an account for your behalf. When you are permitted to take a distribution from the Plan, you will be entitled to all of your deferrals, as adjusted for any gains or losses. The type of compensation that may be deferred under the Plan is explained in the section of the Summary Plan Description entitled "What compensation is used to determine my Plan benefits?" (this is in the Article entitled "COMPENSATION AND ACCOUNT BALANCE"). Your total deferrals in any taxable year may not exceed a dollar limit which is set by law. The dollar limit may increase each year for cost-of-living adjustments. The Administrator will notify you of the maximum percentage you may defer. If you are projected to attain age 5 during a calendar year, then you may elect to defer additional amounts (called "catch-up contributions") to the Plan. These are additional amounts that you may defer, up to an annual limit imposed by law, regardless of any other limits imposed by the Plan. You may make either Regular 4(k) deferrals (pre-tax) or Roth 4(k) deferrals (after-tax). Your election regarding the amount and type of deferrals is irrevocable with respect to any deferrals already withheld from your compensation. If you make Regular 4(k) deferrals, your deferrals are not subject to income tax until distributed from the Plan. If you make Roth 4(k) deferrals, your deferrals are subject to income tax at the time of deferral. The Roth 4(k) deferrals, however, are not taxed when you receive a distribution from the Plan. In addition, if you satisfy certain distribution requirements (see the Section below entitled "Distribution provisions"), then the earnings on the deferrals will not be subject to income tax when distributed from the Plan. Both types of deferrals are subject to Social Security taxes at the time of deferral. Your Employer will deduct the Social Security taxes, and in the case of Roth 4(k) deferrals will deduct income taxes, from your remaining compensation. Automatic deferrals. The Plan includes an automatic enrollment feature known as an Qualified Automatic Contribution Arrangement ("QACA"). Under the QACA provisions of the Plan, if you do not complete and return a salary reduction agreement, then the Employer will automatically withhold a portion of your eligible compensation from your pay each payroll period and contribute that amount to the Plan as a Regular 4(k) deferral (the automatic amount is described below). If you wish to defer the automatic deferral amount, then you do not need to complete a salary reduction agreement. You may, however, choose a different amount. You can contribute more, less, or even nothing to the Plan. If you want to defer an amount other than the automatic deferral then you may elect, within a reasonable time after receipt of this notice, and before the first automatic deferral to which this notice applies, to defer a different amount of compensation (including zero). You may make this election by submitting a salary reduction agreement to the Plan Administrator within a reasonable period of time prior to the payroll cut-off date. Application of automatic deferral provisions. The automatic deferral provisions are effective as of August 6, 29. Accordingly, the Employer will automatically withhold a portion of your compensation from your pay each payroll period and contribute that amount to the Plan as a pre-tax 4(k) deferral unless you make a contrary election. Automatic deferral amount. The initial automatic deferral amount is: 3% of your compensation for each pay period. of 4

2 Safe Harbor Notice and QDIA Notice The initial deferral amount will increase each Plan Year that you participate in the Plan in accordance with the table below. Plan Year of application Automatic Deferral Percentage -2 3% 3 4 5% 5 and thereafter II. Employer Safe Harbor Contribution Election In order to maintain "QACA safe harbor" status, your Employer will make a safe harbor matching contribution equal to of your elective deferrals that do not exceed % of your compensation, plus 7 of your elective deferrals that exceed % but are less than of your compensation. This safe harbor matching contribution is vested after two Years of Service. For purposes of calculating the safe harbor matching contribution, your compensation and deferrals will be determined on an annual basis. III. Vesting The following is a general explanation of the vesting provisions of the Plan. More details can be found in the Article of the SPD entitled "VESTING." vested contributions. You are always vested (which means that you are entitled to all of the amounts) in your accounts attributable to the following contributions: elective deferrals including catch-up contributions rollover contributions Vesting schedules. Your "vested percentage" for certain Employer contributions is based on vesting Years of Service. This means at the time you stop working, your account balance attributable to contributions subject to a vesting schedule is multiplied by your vested percentage. The result, when added to the amounts that are always vested as shown above, is your vested interest in the Plan, which is what you will actually receive from the Plan. Nonelective Contributions. Your "vested percentage" in your account attributable to nonelective contributions is determined under the following schedule. You will always, however, be vested in your nonelective contributions if you are employed on or after your Normal Retirement Age or if you terminate employment on account of your death, or if you terminate employment as a result of becoming disabled. Vesting Schedule Nonelective Contributions Years of Service Percentage Qualified Safe Harbor Contributions Less than Your "vested percentage" in your account attributable to qualified safe harbor contributions is determined under the following schedule. You will always, however, be vested in your qualified safe harbor contributions if you are employed on or after your Normal Retirement Age or if you die or become disabled 2 of 4

3 Safe Harbor Notice and QDIA Notice Vesting Schedule Qualified Safe Harbor Contributions Years of Service Percentage Less than 2 2 IV. Distribution provisions The Plan and law impose restrictions on when you may receive a distribution from the Plan. Below is general information on when distributions may be made under the Plan. See the SPD for more details. You generally may not withdraw your deferral contributions except when one of the following events occurs: severance from employment with the Employer, death, or attainment of age 59½. You are always vested in your deferral contributions. If you make Roth 4(k) deferrals, you may take a qualified distribution of your Roth 4(k) deferrals only if you satisfy two requirements. First, the distribution must be on account of attainment of age 59½ or death. Second, the distribution must not occur prior to the end of the 5-year participation period that begins with the first taxable year for which you made a Roth 4(k) deferral to the Plan, or if earlier, the first taxable year for which you made a Roth 4(k) deferral to another Roth 4(k) plan or Roth 43(b) plan that you rolled over to this Plan. If you take a qualified distribution of your Roth 4(k) deferrals, you will receive tax-free the earnings on the Roth 4(k) deferrals, in addition to the Roth 4(k) deferrals. If you take a distribution of your Roth 4(k) deferrals that is not a qualified distribution, the earnings on the Roth 4(k) deferrals will be taxable to you. If your vested account balance exceeds $,, you may elect to have your vested account balance distributed to you as soon as administratively feasible following your termination of employment. If your vested account balance does not exceed $,, a distribution of your vested account balance may be made to you as soon as administratively feasible following your termination of employment. You may also withdraw money from the Plan from certain accounts if you have reached age 59½ or if you have an immediate and heavy financial need. However, there are various rules and requirements that you must meet before any withdrawal is permitted. See the Article in the SPD entitled "DISTRIBUTIONS PRIOR TO TERMINATION OF EMPLOYMENT" for more details. You may withdraw money at any time from your rollover account. V. Administrative procedures The amount you elect to defer will be deducted from your pay in accordance with a procedure established by the Administrator. Your election will become effective as soon as administratively feasible. Your election will remain in effect until you modify or terminate it. You may revoke or make modifications to your salary deferral election in accordance with procedures that the Plan Administrator provides. In addition to any other election periods provided above, you may make or modify a deferral election during the 3-day period immediately preceding the Plan Year for which this notice is being provided. VI. estments Right to direct investment/default investment. You have the right to direct the investment of your deferrals (whether the deferrals result from the Plan's automatic deferral or from a salary reduction agreement) and also other accounts under the Plan (your "directed accounts") in any of the investment choices explained in the investment information materials provided to you. We encourage you to make an investment election to ensure that amounts in the Plan are invested in accordance with your long-term investment and retirement plans. However, if you do not make an investment election, then the amounts that you could have elected to invest will be invested in a default investment that the Plan officials have selected (QDIA). The Plan s current QDIA is the Vanguard Target Retirement Funds Series. Attached are fund sheets describing the investment objectives, 3 of 4

4 Safe Harbor Notice and QDIA Notice risk and return characteristics and fees and expenses of the QDIA. Upon participation in the Plan, you have the right under the Plan to direct the investment of your account, including the right to transfer out of the QDIA to any of the Plan s available investment options The QDIA that will be used for your account will be the Vanguard Target Retirement Income fund that most closely corresponds to your Retirement Date Range. The following table indicates which fund your contributions will be directed to, based on the date of birth provided for you by your employer. Fund Name Retirement Date Range Date of Birth Range (assuming a retirement age of 65) Vanguard Target Retirement Income Retired before 28 Prior to //948 Vanguard Target Retirement Income //948-2/3/952 Vanguard Target Retirement Income //953-2/3/957 Vanguard Target Retirement Income //958-2/3/962 Vanguard Target Retirement Income //963-2/3/967 Vanguard Target Retirement Income //968-2/3/972 Vanguard Target Retirement Income //973-2/3/977 Vanguard Target Retirement Income //978-2/3/982 Vanguard Target Retirement Income //983-2/3/987 Vanguard Target Retirement Income //988-2/3/992 Vanguard Target Retirement Income and later //993 and later Fees and expenses: The direct operating and management fees associated with the fund or funds within the QDIA are listed in the prospectus. There are no sales charges imposed on purchases, sales or reinvestment of dividends. Please see the prospectus for each fund in the QDIA for further information Right to alternative investment. Even if the Plan invests some or all of your deferrals and directed accounts in the default investment, you have the continuing right to direct the investment of your deferrals and directed accounts in one or more of the other investment choices available to you as explained above. You may change your investments in accordance with the investment material provided to you. If you elect to invest in any of the alternative choices within the 9-day period beginning on the date of your first elective deferral, neither the Plan nor the investment vendor will impose any transfer fees or expenses. However, your account will be adjusted for any investment gains or losses. If you elect to transfer to an alternative investment after the 9-day period beginning on the date of your first elective deferral, then restrictions and fees may apply. These will be described in the separate investment material provided to you. Where to go for further investment information. You can obtain further investment information about the Plan's investment alternatives and the procedures for changing your Plan investments by logging onto your account at or calling the Ingham Retirement Group Participant Service Center at VII. Employer's right to terminate Plan Pursuant to the terms of the Plan, your Employer has the right, at any time, to terminate the Plan. Termination of the Plan will result in the discontinuance of all contributions to the Plan (including the safe harbor 4(k) contribution) with respect to any compensation you receive after the effective date of the termination. Termination of the Plan will not affect your right to receive any contributions you have accrued as of the effective date of the termination. VIII. Additional information This notice is not a substitute for the Summary Plan Description. The provisions of the Plan are very complex and you should always look at the Summary Plan Description if you have any questions about the Plan. If, after reading the Summary Plan Description, you still have questions, contact Ingham Retirement Group or the Plan Administrator. 4 of 4

5 Vanguard Target Retirement Income VTINX Strategy: The investment seeks to provide current income and some capital appreciation. The fund invests in other Vanguard mutual funds according to an asset allocation strategy designed for investors currently in retirement. Its indirect bond holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; inflation-protected public obligations issued by the U.S. Treasury; mortgage-backed and asset-backed securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar. Category Target-Date Retirement 9222E2 Inception Date Oct 27, 23 Net Assets ($mil) $6,645. Market Capitalization ($mil) $37, $22 $2 $8 $6 $4 $2 $ Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs 2 5% 5% -5% - -5% Expense Ratio. Prospectus Net Expense Ratio.3% Prospectus Gross Expense Ratio.3% 2b- $8 Oct 23 Dec 25 Dec 27 Dec 29 Dec 2 Dec 23 Sep 27 Vanguard Target Retirement Income Dow Jones US Target Today Morningstar Target-Date Retirement -2 YTD Vanguard Target Retirement Income Dow Jones US Target Today Morningstar Target-Date Retirement YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement Income 6.3% (7) 5.2 (7) 4.2 (33%) 4.6 (35%) 4.87% () 5.25% -.7% Morningstar Target-Date Retirement 6.57% 5.63% 3.67% % 5.7% -.75% Morningstar Target-Date Retirement 4.3% % 3.97% 5.3% % Cyclical Basic Materials.6.5 Consumer Cyclical % Financial Services Real Estate. 2. Defensive 6.85% 7.3 Consumer Defensive 2.49% 2.6 Healthcare Utilities.9.9 Sensitive.93%.77% Communication.5%. Energy.6.8 Industrials 3.35% 3.6 Technology 4.79% 5.7% - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement Income Morningstar Target-Date Retirement Dow Jones US Target Today Composition Domestic Stock % Foreign Stock.45%.% Domestic Bond % Foreign Bond 8.23% 8.5 Preferred Bond.%. Convertible Bond.. Cash Other.9 2.3% Number of Stocks 8 Number of Bonds 67 Emerging Market.85%.89% United States 7.7 Japan.99% Canada.77% Africa. Latin America.35% Middle East.9% United Kingdom.3 Australasia.5 EuroZone 2.49% Asia Dev. Eur ex. EuroZone. Asia EM.7% Europe Emerging.5% Not Classified. Alpha.6 Beta.8 Standard Dev 5.9% Eff Maturity 7.9 Yrs R-Squared 92.9 Eff Duration 5.69 Yrs Sharpe Ratio.8 Avg Coupon 2.29% Turnover Ratio. Yield.8 AAA 66.9% B. AA 8.2 Below B. A 3.23% NR/. B 2.45% Avg Credit. Quality B Top Holdings. Vanguard Total Bond Market II Idx 37.23% 2. Vanguard Total Stock Mkt Idx Vanguard Shrt-Term Infl-Prot Sec Idx Vanguard Total Intl Bd Idx estor 5.9% 5. Vanguard Total Intl Stock Index Total ($6,55,99,952). Risk/ 7% 5% 3% % % 3% 5% Vanguard Target Retirement Income Morningstar Target-Date Retirement Dow Jones US Target Today report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

6 Vanguard Target Retirement 25 VTXVX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 25 (the target year). Category Target-Date E3 Inception Date Oct 27, 23 Net Assets ($mil) $7,25.6 Market Capitalization ($mil) $37,348.9 $24 $22 $2 $8 $6 $4 $2 $ Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $8 Oct 23 Dec 25 Dec 27 Dec 29 Dec 2 Dec 23 Sep 27 Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25-3 YTD Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement % (5) 7.95% (6) 5.35% (43%) 6.9 (3%) 4.8 () Morningstar Target-Date % % Dow Jones US Target % % Cyclical % Basic Materials % Consumer Cyclical 4.73% 5. Financial Services % Real Estate.65%.7% Defensive 9.95%. Consumer Defensive % Healthcare 4.99% 5.43% Utilities.3.25% Sensitive % Communication.67%.67% Energy Industrials % Technology 6.95% 7.55% - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 Composition Domestic Stock 25.89% 28.6 Foreign Stock % Domestic Bond 38.59% 38.4 Foreign Bond 5.63% 7.9 Preferred Bond.. Convertible Bond.%.2 Cash % Other. 4. Number of Stocks 8 Number of Bonds 59 Emerging Market United States 25.7 Japan 2.89% Canada. Africa.2 Latin America.5 Middle East.3% United Kingdom 2. Australasia.8 EuroZone 3. Asia Dev.6 Eur ex. EuroZone.65% Asia EM.69% Europe Emerging.2 Not Classified. Alpha -.7% Beta.32 Standard Dev 8.55% Eff Maturity 7.47 Yrs R-Squared 9.7 Eff Duration 5.88 Yrs Sharpe Ratio.5 Avg Coupon 2.4 Turnover Ratio 9. Yield.8 AAA 63.9 B. AA 8.7 Below B. A 4. NR/. B 3.23% Avg Credit. Quality B Top Holdings. Vanguard Total Bond Market II Idx Vanguard Total Stock Mkt Idx Vanguard Total Intl Stock Index Vanguard Total Intl Bd Idx estor 3.63% 5. Vanguard Shrt-Term Infl-Prot Sec Idx Total ($7,2,998,4). Risk/ % 3% 5% Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

7 Vanguard Target Retirement 22 VTWNX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 22 (the target year). Category Target-Date E85 Inception Date Jun 7, 26 Net Assets ($mil) $3, Market Capitalization ($mil) $37,348. $2 $8 $6 $4 $2 $ $8 Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $6 Jun 26 Dec 27 Dec 29 Dec 2 Dec 23 Dec 25 Sep 27 Vanguard Target Retirement 22 Morningstar Target-Date 22 Dow Jones US Target 22-3 YTD Vanguard Target Retirement 22 Morningstar Target-Date 22 Dow Jones US Target 22 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement 22.37% (23%).7% (33%) 6.23% (3%) 8. () 5.5% () 6.95% -.6 Morningstar Target-Date Dow Jones US Target % % % Cyclical 2.95% 8.85% Basic Materials Consumer Cyclical % Financial Services 9.83% 8.3% Real Estate % Defensive 2.6.5% Consumer Defensive % Healthcare 6.35% 5.49% Utilities.7.35% Sensitive 2.9% 7.% Communication 2.3%.6 Energy 3.3% 2.5 Industrials % Technology 8.85% Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 22 Morningstar Target-Date 22 Dow Jones US Target 22 Composition Domestic Stock 32.95% 3.2 Foreign Stock Domestic Bond Foreign Bond Preferred Bond..5% Convertible Bond.%.% Cash Other Number of Stocks 25 Number of Bonds 8 Emerging Market % United States 32.77% Japan 3.6 Canada.4 Africa.3 Latin America.6 Middle East. United Kingdom 2.5 Australasia.7% EuroZone 4.6 Asia Dev 2. Eur ex. EuroZone 2. Asia EM 2. Europe Emerging.29% Not Classified. Alpha -.3 Beta.25 Standard Dev.4 Eff Maturity 8. Yrs R-Squared 95. Eff Duration 6.3 Yrs Sharpe Ratio.5% Avg Coupon 2.65% Turnover Ratio 5. Yield.79% AAA 59. B. AA 9.95% Below B. A 5.9 NR/. B 5.5% Avg Credit. Quality B Top Holdings. Vanguard Total Stock Mkt Idx Vanguard Total Bond Market II Idx Vanguard Total Intl Stock Index 22.25% 4. Vanguard Total Intl Bd Idx estor Vanguard Shrt-Term Infl-Prot Sec Idx 3.57% Total ($3,859,622,4). Risk/ % 3% 5% Vanguard Target Retirement 22 Morningstar Target-Date 22 Dow Jones US Target 22 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

8 Vanguard Target Retirement 225 VTTVX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 225 (the target year). Category Target-Date E49 Inception Date Oct 27, 23 Net Assets ($mil) $37,.93 Market Capitalization ($mil) $37,33. $3 $25 $2 Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs 3 2 Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $5 $ $5 Oct 23 Dec 25 Dec 27 Dec 29 Dec 2 Dec 23 Sep 27 Vanguard Target Retirement 225 Morningstar Target-Date 225 Dow Jones US Target YTD Vanguard Target Retirement 225 Morningstar Target-Date 225 Dow Jones US Target 225 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement (33%).7 (35%) 6.7 (5%) 8.85% (3%) 5. () % Morningstar Target-Date %.77% % 3.83% 6.75% -.59% Dow Jones US Target % % 6.3% 7.77%.9% Cyclical % Basic Materials 3.47% 2. Consumer Cyclical 6.95% 6.5 Financial Services.35% 9.7 Real Estate 2.43% 4. Defensive % Consumer Defensive Healthcare 7.33% 6.5 Utilities.97%.63% Sensitive Communication % Energy Industrials % Technology Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 225 Morningstar Target-Date 225 Dow Jones US Target 225 Composition Domestic Stock Foreign Stock 24.47% 9.3 Domestic Bond % Foreign Bond 2.27% 3.9% Preferred Bond.3%.5% Convertible Bond.%. Cash Other Number of Stocks 7 Number of Bonds 42 Emerging Market United States 37. Japan 4.2 Canada.65% Africa.39% Latin America.7 Middle East.9% United Kingdom 2.9 Australasia.23% EuroZone 5.3 Asia Dev 2.3 Eur ex. EuroZone 2.43% Asia EM 2.49% Europe Emerging.33% Not Classified. Alpha -. Beta.8 Standard Dev.6 Eff Maturity 8.57 Yrs R-Squared 94. Eff Duration 6.6 Yrs Sharpe Ratio.53% Avg Coupon 2.83% Turnover Ratio 5. Yield.7 AAA 55.45% B. AA.8 Below B. A 7.37% NR/. B 6.3 Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx 38.49% 2. Vanguard Total Intl Stock Index Vanguard Total Bond Market II Idx Vanguard Total Intl Bd Idx estor.69% Total ($36,482,572,288). Risk/ % 3% 5% 7% Vanguard Target Retirement 225 Morningstar Target-Date 225 Dow Jones US Target 225 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

9 Vanguard Target Retirement 23 VTHRX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 23 (the target year). Category Target-Date E888 Inception Date Jun 7, 26 Net Assets ($mil) $3,877.2 Market Capitalization ($mil) $37,347.6 $22 $2 $8 $6 $4 $2 $ $8 Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio.5% Prospectus Gross Expense Ratio.5% 2b- $6 Jun 26 Dec 27 Dec 29 Dec 2 Dec 23 Dec 25 Sep 27 Vanguard Target Retirement 23 Morningstar Target-Date 23 Dow Jones US Target 23-4 YTD Vanguard Target Retirement 23 Morningstar Target-Date 23 Dow Jones US Target 23 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement % (37%) 3.25% () 7.9% (25%) 9.5 () 5.27% () 7.85% -.3% Morningstar Target-Date 23.9% % 3.89% Dow Jones US Target % % % Cyclical Basic Materials 3.87% 3.2 Consumer Cyclical Financial Services Real Estate 2.7% 4.7% Defensive 6.33% 5. Consumer Defensive Healthcare 8.9% 7.8 Utilities Sensitive 26.5% 24.57% Communication Energy 3.9% 3.59% Industrials Technology Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 23 Morningstar Target-Date 23 Dow Jones US Target 23 Composition Domestic Stock % Foreign Stock 27.29% 23.77% Domestic Bond 7.53% 2. Foreign Bond Preferred Bond.3%. Convertible Bond.%. Cash.47% 3.83% Other % Number of Stocks 33 Number of Bonds 43 Emerging Market United States 42.27% Japan 4.75% Canada.8 Africa.43% Latin America.83% Middle East. United Kingdom 3.2 Australasia.3 EuroZone 5.93% Asia Dev 2.63% Eur ex. EuroZone 2.7% Asia EM 2.7 Europe Emerging.37% Not Classified. Alpha -.87% Beta.5 Standard Dev 2.6 Eff Maturity 8.57 Yrs R-Squared 96.% Eff Duration 6.6 Yrs Sharpe Ratio.45% Avg Coupon 2.83% Turnover Ratio 6. Yield.7 AAA 55.4 B. AA.8 Below B. A 7.3 NR/. B 6.3 Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx 43.3% 2. Vanguard Total Intl Stock Index 28.7% 3. Vanguard Total Bond Market II Idx Vanguard Total Intl Bd Idx estor Total ($3,2,25,248). Risk/ % 3% 5% 7% Vanguard Target Retirement 23 Morningstar Target-Date 23 Dow Jones US Target 23 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

10 Vanguard Target Retirement 235 VTTHX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 235 (the target year). Category Target-Date E58 Inception Date Oct 27, 23 Net Assets ($mil) $29,798.7 Market Capitalization ($mil) $37, $35 $3 $25 $2 $5 $ Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio.5% Prospectus Gross Expense Ratio.5% 2b- $5 Oct 23 Dec 25 Dec 27 Dec 29 Dec 2 Dec 23 Sep 27 Vanguard Target Retirement 235 Morningstar Target-Date 235 Dow Jones US Target YTD Vanguard Target Retirement 235 Morningstar Target-Date 235 Dow Jones US Target 235 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement % () 4.7 () 7. (3).3 (7%) 5.4 (2) Morningstar Target-Date % % 4.35% Dow Jones US Target % % % Cyclical 29.83% 3.25% Basic Materials 4.27% 3.5 Consumer Cyclical 8.57% 9. Financial Services Real Estate 2.99% 5.63% Defensive 8.3% 7. Consumer Defensive % Healthcare % Utilities 2.43% 2.7% Sensitive Communication 3.3% 2.65% Energy 4.3% 4.2 Industrials Technology % - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 235 Morningstar Target-Date 235 Dow Jones US Target 235 Composition Domestic Stock 46.93% 48.9% Foreign Stock 3.3% 27.73% Domestic Bond Foreign Bond 7..8 Preferred Bond.3%. Convertible Bond.%.7% Cash.33% 4.59% Other % Number of Stocks 2 Number of Bonds 4 Emerging Market % United States 46.67% Japan 5.2 Canada 2.3% Africa.4 Latin America.9% Middle East.23% United Kingdom 3.6 Australasia.5 EuroZone 6.55% Asia Dev 2.9% Eur ex. EuroZone 3. Asia EM 3.7% Europe Emerging. Not Classified. Alpha -.7% Beta.98 Standard Dev 2.57% Eff Maturity 8.57 Yrs R-Squared 95.27% Eff Duration 6.6 Yrs Sharpe Ratio.49% Avg Coupon 2.83% Turnover Ratio 4. Yield.75% AAA 55.45% B. AA.8 Below B. A 7.3 NR/. B 6.3 Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx 47.5% 2. Vanguard Total Intl Stock Index 3.69% 3. Vanguard Total Bond Market II Idx Vanguard Total Intl Bd Idx estor Total ($29,9,596,544). Risk/ % 3% 5% 7% 9% Vanguard Target Retirement 235 Morningstar Target-Date 235 Dow Jones US Target 235 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

11 Vanguard Target Retirement 24 VFORX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 24 (the target year). Category Target-Date E87 Inception Date Jun 7, 26 Net Assets ($mil) $22, Market Capitalization ($mil) $37,357.7 $24 $22 Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs 4 3 Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $2 $8 $6 $4 $2 $ $8 $6 Jun 26 Dec 27 Dec 29 Dec 2 Dec 23 Dec 25 Sep 27 Vanguard Target Retirement 24 Morningstar Target-Date 24 Dow Jones US Target YTD Vanguard Target Retirement 24 Morningstar Target-Date 24 Dow Jones US Target 24 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement (3) 6.2 (3) 7.97% (3).8 () 5.73% (9%) 8.73% -.59% Morningstar Target-Date % 4.9% 7.9% 9.9% 4.23% Dow Jones US Target % 8.87% 2.5% % -.7 Cyclical Basic Materials Consumer Cyclical Financial Services % Real Estate % Defensive 9.73% 8.3 Consumer Defensive Healthcare % Utilities 2.65% 2.23% Sensitive 3.47% 29.6 Communication 3.3% 2.8 Energy Industrials % Technology % - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 24 Morningstar Target-Date 24 Dow Jones US Target 24 Composition Domestic Stock 5.39% 52.75% Foreign Stock Domestic Bond Foreign Bond Preferred Bond..9% Convertible Bond.. Cash Other Number of Stocks 3 Number of Bonds 2 Emerging Market 5.3% 5.49% United States 5.% Japan 5.73% Canada 2.2 Africa.5 Latin America. Middle East.25% United Kingdom 3.9 Australasia.6 EuroZone 7. Asia Dev 3. Eur ex. EuroZone 3.2 Asia EM 3.3 Europe Emerging.45% Not Classified. Alpha -.5 Beta.95 Standard Dev 3.85% Eff Maturity 8.57 Yrs R-Squared 95.69% Eff Duration 6.6 Yrs Sharpe Ratio.4 Avg Coupon 2.83% Turnover Ratio 6. Yield.7 AAA 55.47% B. AA. Below B. A 7.37% NR/. B 6.35% Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx 52.3% 2. Vanguard Total Intl Stock Index Vanguard Total Bond Market II Idx 9.33% 4. Vanguard Total Intl Bd Idx estor 3.97% Total ($2,749,444,68). Risk/ % 3% 5% 7% Vanguard Target Retirement 24 Morningstar Target-Date 24 Dow Jones US Target 24 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

12 Vanguard Target Retirement 245 VTIVX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 245 (the target year). Category Target-Date E67 Inception Date Oct 27, 23 Net Assets ($mil) $2,43. Market Capitalization ($mil) $37, $35 $3 $25 $2 $5 $ Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $5 Oct 23 Dec 25 Dec 27 Dec 29 Dec 2 Dec 23 Sep 27 Vanguard Target Retirement 245 Morningstar Target-Date 245 Dow Jones US Target YTD Vanguard Target Retirement 245 Morningstar Target-Date 245 Dow Jones US Target 245 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement (3) 6.8 (3) 8. (27%).9% () 5.77% (2) 8.87% -.57% Morningstar Target-Date % % 4.57% Dow Jones US Target % 7.59% % Cyclical Basic Materials Consumer Cyclical 9.75% 9.97% Financial Services % Real Estate Defensive Consumer Defensive % Healthcare Utilities % Sensitive Communication Energy Industrials. 9. Technology % - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 245 Morningstar Target-Date 245 Dow Jones US Target 245 Composition Domestic Stock % Foreign Stock % Domestic Bond Foreign Bond 3..9 Preferred Bond..9% Convertible Bond..5% Cash. 4.4 Other. 2.89% Number of Stocks 227 Number of Bonds 28 Emerging Market % United States 53.7% Japan 5.9 Canada 2.3% Africa.55% Latin America. Middle East.2 United Kingdom 4. Australasia.73% EuroZone 7.45% Asia Dev 3.3 Eur ex. EuroZone 3. Asia EM 3.49% Europe Emerging.4 Not Classified. Alpha -.3 Beta.92 Standard Dev 2.8 Eff Maturity 8.57 Yrs R-Squared 95.4 Eff Duration 6.6 Yrs Sharpe Ratio.5 Avg Coupon 2.83% Turnover Ratio 3. Yield.7% AAA 55.43% B. AA.83% Below B. A 7.3 NR/. B 6.3 Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx 54.3% 2. Vanguard Total Intl Stock Index Vanguard Total Bond Market II Idx Vanguard Total Intl Bd Idx estor 2.97% Total ($9,85,36,256). Risk/ Vanguard Target Retirement 245 Morningstar Target-Date 245 Dow Jones US Target 245 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

13 Vanguard Target Retirement 25 VFIFX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 25 (the target year). Category Target-Date E862 Inception Date Jun 7, 26 Net Assets ($mil) $3,47. Market Capitalization ($mil) $37, $26 $24 $22 $2 $8 $6 $4 $2 $ $8 $6 Jun 26 Dec 27 Dec 29 Dec 2 Dec 23 Dec 25 Sep 27 Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- YTD Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement (3) 6.8 () 8.5% (3).9% (5%) 5.7 (2) 8.85% -.5 Morningstar Target-Date % % 4.43% % Dow Jones US Target 25.97% 5.97% 9.55% 2.79% 7.67% Cyclical 33.93% 36.2 Basic Materials 4.85% 4.% Consumer Cyclical 9.75%.3% Financial Services % Real Estate % Defensive 2.5% 9.5 Consumer Defensive Healthcare.29%. Utilities Sensitive Communication Energy Industrials.% 9. Technology 4.35% 4. - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 Composition Domestic Stock 53.45% 54.9 Foreign Stock % Domestic Bond 6.7% 5.29% Foreign Bond Preferred Bond..7% Convertible Bond..3% Cash. 4.5% Other. 2.3 Number of Stocks 82 Number of Bonds 24 Emerging Market 5.5% 5.6 United States 53. Japan 5.95% Canada 2.3 Africa.5 Latin America.3% Middle East.2 United Kingdom 4.% Australasia.7 EuroZone 7.43% Asia Dev 3.3 Eur ex. EuroZone 3.4 Asia EM 3.4 Europe Emerging.4 Not Classified. Alpha -.65% Beta.92 Standard Dev 3.8 Eff Maturity 8.57 Yrs R-Squared 95.6 Eff Duration 6.6 Yrs Sharpe Ratio.4 Avg Coupon 2.83% Turnover Ratio 2. Yield.67% AAA 55.5 B. AA.8 Below B. A 7.3 NR/. B 6.35% Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx Vanguard Total Intl Stock Index 35.95% 3. Vanguard Total Bond Market II Idx 6.97% 4. Vanguard Total Intl Bd Idx estor Total ($2,973,4,328). Risk/ % 3% 5% 7% 9% Vanguard Target Retirement 25 Morningstar Target-Date 25 Dow Jones US Target 25 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

14 Vanguard Target Retirement 255 VFFVX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 255 (the target year). Category Target-Date E847 Inception Date Aug 8, 2 Net Assets ($mil) $5, Market Capitalization ($mil) $37,382.2 $26 $24 $22 $2 $8 $6 $4 $2 Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $ Aug 2 Dec 2 Dec 22 Dec 23 Dec 24 Dec 25 Sep 27 Vanguard Target Retirement 255 Morningstar Target-Date 255 Dow Jones US Target YTD Vanguard Target Retirement 255 Morningstar Target-Date 255 Dow Jones US Target 255 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement (4) 6.8 (5) 8. (37%).8 (23%) () Morningstar Target-Date % % Dow Jones US Target % 5.99% % 2.37% -.9 Cyclical 33.9% 36.7 Basic Materials 4.85% 4. Consumer Cyclical 9.75% 9.93% Financial Services 5.9% 4.9 Real Estate Defensive Consumer Defensive Healthcare.2. Utilities % Sensitive 32.69% 3.5 Communication Energy % Industrials.% 9. Technology Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 255 Morningstar Target-Date 255 Dow Jones US Target 255 Composition Domestic Stock 53.45% 54.6 Foreign Stock 34.7% 32.77% Domestic Bond % Foreign Bond 3.39%.29% Preferred Bond..5% Convertible Bond..% Cash. 4.3 Other. 2. Number of Stocks 277 Number of Bonds 3 Emerging Market 5.5% 5.4 United States 53.5% Japan 5.95% Canada 2.3 Africa.5 Latin America.3% Middle East.2 United Kingdom 4.% Australasia.7 EuroZone 7.43% Asia Dev 3.29% Eur ex. EuroZone 3.4 Asia EM 3.4 Europe Emerging.4 Not Classified. Alpha -. Beta.93 Standard Dev.79% Eff Maturity 8.57 Yrs R-Squared 93.5 Eff Duration 6.6 Yrs Sharpe Ratio.9% Avg Coupon 2.83% Turnover Ratio 8. Yield.7 AAA 55.5 B. AA.77% Below B. A 7.3 NR/. B 6.35% Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx Vanguard Total Intl Stock Index 35.93% 3. Vanguard Total Bond Market II Idx Vanguard Total Intl Bd Idx estor 2.95% Total ($5,35,76,864) 99.9 Risk/ Vanguard Target Retirement 255 Morningstar Target-Date 255 Dow Jones US Target 255 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27

15 Vanguard Target Retirement 26 VTTSX mutual funds according to an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of 26 (the target year). Category Target-Date E839 Inception Date Jan 9, 22 Net Assets ($mil) $2,8.52 Market Capitalization ($mil) $37,48.46 $2 $8 $6 $4 $2 $ Address Line Address Line 2 Po Box 26 Vm #v34 City, State, Zip Valley Forge, PA 9482 Phone Yrs Expense Ratio. Prospectus Net Expense Ratio. Prospectus Gross Expense Ratio. 2b- $8 Jan 22 Dec 22 Dec 23 Dec 24 Dec 25 Sep 27 Vanguard Target Retirement 26 Morningstar Target-Date 26+ Dow Jones US Target 26-4 YTD Vanguard Target Retirement 26 Morningstar Target-Date 26+ Dow Jones US Target 26 YTD (Rank) Yr (Rank) 3 Yrs (Rank) 5 Yrs (Rank) Yrs (Rank) Vanguard Target Retirement % (5%) 6.8 (6) 8.9% ().87% (%) () Morningstar Target-Date % % Dow Jones US Target 26.99% 5.99% % 2.37% -.9 Cyclical % Basic Materials 4.85% 4.45% Consumer Cyclical 9.75% 9.93% Financial Services 5.9% 5.3 Real Estate % Defensive 2.5% 9.9 Consumer Defensive Healthcare.29%.9% Utilities Sensitive Communication Energy Industrials.% 9.69% Technology 4.35% 4.7% - Russell Value Russell 2 Value Russell Growth Russell 2 Growth Value - Growth Vanguard Target Retirement 26 Morningstar Target-Date 26+ Dow Jones US Target 26 Composition Domestic Stock 53.53% 54.5% Foreign Stock 34.% 33.3 Domestic Bond % Foreign Bond 3.39% 2. Preferred Bond.. Convertible Bond..% Cash. 2.6 Other. 2.25% Number of Stocks 9 Number of Bonds 4 Emerging Market % United States 53.2 Japan 5.93% Canada 2.3 Africa.5 Latin America.3% Middle East.2 United Kingdom 4. Australasia.7 EuroZone 7. Asia Dev 3.29% Eur ex. EuroZone 3.39% Asia EM 3.4 Europe Emerging.4 Not Classified. Alpha -.4 Beta.9 Standard Dev 9. Eff Maturity 8.57 Yrs R-Squared 9.3% Eff Duration 6.6 Yrs Sharpe Ratio.2 Avg Coupon 2.83% Turnover Ratio 6. Yield.7% AAA 55.5 B. AA.7 Below B. A 7.33% NR/. B 6.35% Avg Credit. Quality Top Holdings. Vanguard Total Stock Mkt Idx Vanguard Total Intl Stock Index 35.87% 3. Vanguard Total Bond Market II Idx 6.99% 4. Vanguard Total Intl Bd Idx estor 2.95% Total ($,986,732,672). Risk/ Vanguard Target Retirement 26 Morningstar Target-Date 26+ Dow Jones US Target 26 report. Performance information current to the most recent month end is available by calling or by visiting and logging into your account. Prior to investing, please read each fund's prospectus by logging into your account at As of September 3, 27