Roth IRA Conversion Authorization

Vanguard Brokerage Services

_(VBS

₎

A Division of Vanguard Marketing Corporation, Member of NASD and SIPC

Roth IRA Conversion Authorization

SDRF

A Vanguard

_{Brokerage Roth IRA can hold a variety of securities, such as stocks, options, bonds, and mutual funds from other companies.}

Complete this form to authorize a conversion from a Vanguard traditional IRA or a Vanguard Brokerage traditional IRA to a Vanguard Brokerage

Roth IRA.

■

Print clearly, preferably in capital letters and black ink.

■

Please see the most recent Vanguard Brokerage Services Commission and Fee Schedules for any fees that apply.

A conversion is a taxable event. You may want to seek tax advice before you authorize this conversion.

■

Be sure that you meet the eligibility requirements before you convert to a Roth IRA. Our website provides the requirements for you, if you

need them.

■

Your traditional IRA and Roth IRA must be identically registered for the conversion to take place—same account owner name, address, and Social

Security number.

■

If you have an existing, identically registered Vanguard Brokerage Roth IRA, you only need to complete this Roth IRA Conversion Authorization form.

If you do not have an existing Roth IRA, you must establish one by completing both this form and the attached Roth IRA Adoption Agreement.

If your Vanguard Brokerage traditional IRA contains any open orders, we will close them before converting your account to a Roth IRA. Once the

conversion is complete, you can call a Vanguard Brokerage associate or log on to our website to reenter these orders.

Most forms can be downloaded from our website at www.vanguard.com/visit/serviceforms. Or you can call us to order them—or get

assistance in filling out this form—at 800-992-8327. Return this form and any other required documents in the enclosed postage-paid envelope, or

mail to Vanguard Brokerage Services, P.O. Box 1170, Valley Forge, PA 19482-1170. For overnight delivery, mail to Vanguard Brokerage

Services, 400 Devon Park Drive, Wayne, PA 19087-1815.

1.

Account Owner Information

Name(first, middle initial, last)

–

–

–

–

–

Birth Date (month, day, year) Social Security Number Taxpayer ID Number

–

–

–

–

Daytime Telephone Number Evening Telephone Number

Citizenship of Owner

Citizen Alien Alien Country of Residence (for nonresident aliens)

If you have an existing, identically registered Vanguard Brokerage Roth IRA, provide your account number below. Your converted assets

will be moved into your existing account.

–

Vanguard Brokerage Roth IRA Account Number

OR

SDRF

2.

Account Conversion Instructions

(Indicate which accounts you’d like to convert and what portion of your account assets are to be

converted. If you need more space, provide the information on a separate sheet.)

Brokerage Assets

I would like to convert my identically registered Vanguard Brokerage traditional IRA to a Vanguard Brokerage Roth IRA. (This account holds

your individual securities and non-Vanguard mutual funds. Vanguard mutual funds are not held in your brokerage account.)

–

Vanguard Brokerage Traditional IRA Account Number

Convert all of the assets in the account.

%

Convert only a portion of the assets in the account. (List your securities below.)

Number of Shares

(Enter as the number of whole shares to be

Name of Securities(stocks, options, bonds, non-Vanguard mutual funds) converted; do not enter as a percentage.)

Money Market Settlement Account

I would like to convert my identically registered Vanguard Brokerage traditional IRA money market settlement account to a Vanguard

Brokerage Roth IRA money market settlement account.

–

Vanguard Brokerage Traditional IRA Money Market Settlement Account Number

Convert all of the assets in the account.

%

Convert only a portion of the assets in the account.

%

Number of Shares

Identically Registered Vanguard Mutual Fund Account

I would like to convert my identically registered Vanguard mutual fund traditional IRAs to Vanguard mutual fund Roth IRAs.

(Once your

conversion is processed, your Vanguard mutual fund assets are available to invest in individual securities. When you‘re ready, call

Vanguard Brokerage to exchange assets into your money market settlement account and begin placing trades.)

Vanguard Percentage

Fund Number Account Number of Assets Number of Shares

SDRF

3.

Important Income Tax Information—YOU MUST CHECK ONE BOX BELOW

■

By converting your existing traditional IRA to a Roth IRA, you are authorizing Vanguard to create a taxable distribution from your existing IRA.

Regardless of your withholding election, you are responsible for paying any tax due on the taxable portion of your withdrawals.

■

If the federal and state taxes are due and either your estimated tax payments or the amount of tax you have withheld is insuffucient under

IRS or your state’s rules, you may be subject to penalty taxes.

■

You can elect to have Vanguard withhold federal taxes at a rate of 10% or more. However, realize that you are paying the withholding tax

with IRA assets. This is considered a premature IRA distribution, and you may be subject to a 10% federal penalty tax.

Vanguard Brokerage cannot withhold taxes on conversions involving individual securities or non-Vanguard mutual funds. Withholding can only

occur when converting Vanguard mutual fund assets.

Important: In most instances, it is beneficial for you to elect not to have tax withheld, in

which case you should check the first box below.

I elect not to have federal income tax withheld on the IRA distribution created by this asset conversion.

I elect to have Vanguard Brokerage withhold federal income tax on my Vanguard mutual fund assets only. Withhold at a rate of ______%

(must be at least 10%).

You may want to seek tax advice before you authorize this conversion. At year-end, Vanguard will send both you and the IRS a tax form detailing

the amount of your distribution and any tax withholding that has been applied.

State Income Tax Withholding

(If you have questions regarding state withholding, contact your tax advisor or your state’s taxing authority.

Important: If you are not a resident of one of the following states, Vanguard will not withhold state income tax.)

If federal tax is withheld and you are a resident of IA, KS, MA, ME, NE, or OK: State tax withholding is mandatory. Vanguard will

automatically withhold the minimum required by your state unless you specify a higher amount below.

If federal tax is withheld and you are a resident of AR, CA, DE, NC, OR, or VT: State tax withholding is mandatory unless you specifically

elect not to have tax withheld. Vanguard will automatically withhold the minimum required by your state unless you either check the “Do not

withhold” box or specify a higher amount below.

Vanguard will use the address of record on your IRA to determine state

withholding requirements. If the state listed on that account is not

your legal state of residence, provide that information here.

Check only one.

Do not withhold state income tax from my IRA distributions.

Withhold my state’s minimum requirement.

Withhold my state’s minimum requirement, plus this additional amount:

%

$

Withhold this amount (we will withhold at least your state’s minimum requirement):

%

$

OR

SDRF

4.

Account Owner Signature—YOU MUST SIGN BELOW

I understand that open orders to buy or sell a security will be closed by VBS prior to the conversion of assets from my

traditional IRA to a Roth IRA. I also understand that new orders cannot be placed in my traditional IRA once the

conversion process has started.

I understand that all pending corporate actions (reorganizations) in my traditional IRA will be carried over to my Roth

IRA after the action is completed.

I understand that VBS approval for options investing in my traditional IRA does not carry over to my Roth IRA.

(To obtain

VBS approval for options investing in your Roth IRA, you must complete a new Vanguard Option Application and Agreement form.)

I understand that, unless I choose otherwise, all my securities will be held in “street name”—that is, registered in the name of VBS’s

clearing agent, Pershing LLC, a member of the BNY Securities Group and a subsidiary of The Bank of New York Company, Inc., and

retained in my account.

Please sign here.

(If the IRA owner is a minor, a legal guardian or custodian must sign.)

➤

–

–

Signature Date (month, day, year)

Accepted: Vanguard Fiduciary Trust Company, Custodian

By:_______________________________________________

Title: ____________________________________________

Thank you for your investment!

S I G N A T U R E

Senior Vice President

4 of 10 ©2006 The Vanguard Group, Inc. All rights reserved.

Vanguard Brokerage Services

_(VBS

₎

A Division of Vanguard Marketing Corporation, Member of NASD and SIPC

Roth IRA Adoption Agreement

SDRF

IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT.

Vanguard Brokerage Services is required by federal law to obtain from each person who

opens an account certain personal information—including name, street address, and date of birth among other information—that will be used to

verify identity. If you do not provide us with this information, we will not be able to open the account. If we are unable to verify your identity, Vanguard

Brokerage reserves the right to close your account or take other steps we deem reasonable.

Complete this form to establish a new Vanguard

_{Brokerage Roth IRA as part of the taxable conversion of your existing traditional IRA to a Roth IRA.}

Print clearly, preferably in capital letters and black ink.

■

Please see the most recent Vanguard Brokerage Services Commission and Fee Schedules for any fees that apply.

■

Your traditional IRA and new Roth IRA must be identically registered—same account owner name, address, and Social Security number.

If you are converting a Vanguard Brokerage traditional IRA that contains any open orders, your orders will be automatically closed to process your

conversion. Call a Vanguard Brokerage associate to reenter these orders into your new Vanguard Brokerage Roth IRA.

Most forms can be downloaded from our website at www.vanguard.com/visit/serviceforms. Or you can call us to order them—or

get assistance in filling out this form—at 800-992-8327. Return this form and any other required documents in the enclosed postage-paid

envelope, or mail to Vanguard Brokerage Services, P.O. Box 1170, Valley Forge, PA 19482-1170. For overnight delivery, mail to

Vanguard Brokerage Services, 400 Devon Park Drive, Wayne, PA 19087-1815.

1.

Account Owner Information

If the account owner is not of legal adult age for the state in which he or she resides (18 for most states, 19 in Alabama and Nebraska, and

21 in Mississippi), then the account will require a custodian, who must complete Section 2.

If this IRA is being opened for a minor, print the words “a minor” after providing the name in the boxes below.

Name (first, middle initial, last)

Citizenship U.S. Resident Nonresident

Citizen Alien Alien Country of Residence(for nonresident aliens)

–

–

–

–

Social Security Number (SSN) Individual Taxpayer Identification Number (ITIN) Date Applied For: (if a resident or nonresident alien)

–

–

Birth Date (month, day, year) E-Mail Address-Optional (Vanguard will use your e-mail address only to provide future information you request or to send important Vanguard news. Do not enter the e-mail address of a minor.)

–

–

–

–

Daytime Telephone Number Evening Telephone Number

Note: We cannot establish an account unless you provide at least one telephone number where we can reach you.

Street Address or APO/FPO (A P.O. box or rural route number is not acceptable.)

–

City State Zip

Account’s Mailing Address if Different From Above (used both as the account’s address of record and for all account mailings)

–

City State Zip

OR OR

SDRF

2.

Custodian Information

(Complete this section only if you are opening this IRA for a minor.)

Name (first, middle initial, last)

Citizenship U.S. Resident Nonresident

Citizen Alien Alien Country of Residence(for nonresident aliens)

–

–

–

–

Social Security Number (SSN) Individual Taxpayer Identification Number (ITIN) Date Applied For: (if a resident or nonresident alien)

–

–

Birth Date (month, day, year) E-Mail Address-Optional (Vanguard will use your e-mail address only to provide future information you request or to send important Vanguard news. Do not enter the e-mail address of a minor.)

–

–

–

–

Daytime Telephone Number Evening Telephone Number

Street Address or APO/FPO (A P.O. box or rural route number is not acceptable.)

–

City State Zip

3.

Employment and Affiliation Information

(The following information is required by industry regulations.)

Employment

Retired Not Employed

Your Occupation (If you are self-employed or if you are a consultant, indicate the nature of your business below. If you are a student, provide your school name and address below.)

Name of Employer, or Nature of Your Business (if self-employed or a consultant), or Name of School

Street Address of Employer, Your Business (if self-employed or a consultant), or School

–

City State Zip

Affiliation

(Check all that apply.)

You are a Vanguard employee.

You are, or an immediate family member is, affiliated with or working for a member of a stock exchange, the NASD, or the Municipal

Securities Rulemaking Board. (Important: If you check this box, you must provide a letter of account approval from your employer’s

compliance officer along with this application to open this account. Failure to include an approval letter may delay the processing of your

application. An account approval letter is not required for Vanguard employees. Upon written request from your employer, we will send

duplicate copies of confirmations and statements.)

You are, or an immediate family member is, a “control person” of a publicly traded company or companies as defined by SEC Rule 144.

Control persons include, but are not limited to, company directors, 10% shareholders, officers, and policymaking executives of a publicly

traded company. (Important: If you check this box, you must provide the name and trading symbol of the company below. If you are a

“control person” of more than one company, list the additional companies and their trading symbols on a separate sheet, sign and date the

sheet, and attach it to this application.)

Name of Company Trading Symbol

OR OR

SDRF

4.

Duplicate Documentation

(If you want documentation of securities transactions sent to a third party—for instance, your employer or

financial advisor—provide us with the information requested in this section.)

Duplicate Statements

Duplicate Confirmations

Name of Third Party

Street Address

–

City State Zip

5.

Designate or Select a Vanguard Brokerage Roth IRA Money Market Settlement Account

All your brokerage Roth IRA transactions settle through an identically registered Roth IRA account in one of the Vanguard money market funds

listed below. This settlement Roth IRA account is not subject to a minimum balance requirement after it is established. (Choose one of the

following options.)

I have an identically registered Vanguard Roth IRA money market account that I designate as my settlement account.

Fund Number Fund Name Money Market Account Number

I want to establish a new Vanguard Roth IRA money market settlement account in the Vanguard money market fund checked below. (If you

do not select one of the money market funds below, we will establish your account in Vanguard Prime Money Market Fund.)

Prime Money Market Fund (0030) Treasury Money Market Fund (0050)

Federal Money Market Fund (0033) Admiral™_{Treasury Money Market Fund (0011)}

Note: The minimum initial investment for the Admiral Treasury Money Market Fund is $50,000; for the other funds it is $3,000.

6.

Brokerage Roth IRA Distribution Instructions

(Important: You must choose one option. If you don’t, all distributions will be

deposited in your money market settlement account.)

Reinvest earnings from my eligible securities in additional shares of those securities. (There is no charge for this service.)

Deposit earnings from my securities into my Vanguard Brokerage Roth IRA money market settlement account.

SDRF

7.

Beneficiary Designation

(If you need more space to list additional beneficiaries, either photocopy this section or provide all the

information requested—in the same format—on a separate sheet.)

Important: Complete this section only if you checked that you want to establish a new Vanguard Roth IRA money market

settlement account in Section 5. If you will be settling your brokerage transactions through an already established Roth

IRA money market account, the beneficiaries currently in place on that account will remain in effect.

The designations you make on this form will not affect the beneficiary designations of other IRAs you may hold at Vanguard.

If you choose an option below that indicates a relationship instead of specific names, the executor or administrator of your estate (or the

trustee if you designate a trust as a beneficiary) will be the one responsible for providing Vanguard with the names of your beneficiaries.

If you have ever lived in a community property state while you were married, your spouse at that time may have certain rights to your IRA.

We suggest that you consult your attorney for guidance on how your beneficiary designations may be affected by those state laws.

Detailed information on these designations can be found on our website at www.vanguard.com/visit/beneficiary.

■

Primary Beneficiaries

(Check all that apply.)

Those you list as primary beneficiaries will inherit your IRA following your death.

If you choose more than one primary beneficiary option without indicating percentages, or if the percentages you allocate to your primary

beneficiaries combined do not total 100%, we will allocate equal percentages totaling 100%.

1.

To my spouse who survives me. (The person you’re married to at the time of your death.)

%

2.

To my descendants who survive me, per stirpes. (Divides the percentage you specify equally among your

%

children. If a child is deceased, that child’s children, if any, will share your deceased child’s portion equally.)

3.

Equally to my grandchildren who survive me.

%

4.

To the trustee of an existing trust that was created under an agreement known as

%

, dated

–

–

.

Name of Trust Trust Date (month, day, year)

5.

To the trustee of a trust created under my last will. The trust is known as

%

or is located at

.

Name of Trust Section of Will

6.

Other (Choose this category to specify by name individuals or charities not covered by the previous options.):

%

Name of Individual (first, middle initial, last) or Charity

Relationship

–

–

Spouse Other Individual’s Birth Date(month, day, year)

%

Name of Individual (first, middle initial, last) or Charity

Relationship

–

–

Spouse Other Individual’s Birth Date(month, day, year)

TOTAL

%

I do not want to name beneficiaries at this time. (Important: If you choose this option, your beneficiary will be what is stated as the

default under the Vanguard Traditional and Roth IRA Custodial Account Agreement in effect at the time of your death. Skip to Section 8.)

0

0

1

SDRF ■

Secondary Beneficiaries

(Check all that apply.)

Those you list as secondary beneficiaries will inherit your IRA only if there are no surviving primary beneficiaries at the time of

your death.

If you choose more than one secondary beneficiary option without indicating percentages, or if the percentages you allocate to

your secondary beneficiaries combined do not total 100%, we will allocate equal percentages totaling 100%.

1.

To my spouse who survives me. (The person you’re married to at the time of your death.)

%

2.

To my descendants who survive me, per stirpes. (Divides the percentage you specify equally among your

%

children. If a child is deceased, that child’s children, if any, will share your deceased child’s portion equally.)

3.

Equally to my grandchildren who survive me.

%

4.

To the trustee of an existing trust that was created under an agreement known as

%

, dated

–

–

.

Name of Trust Trust Date (month, day, year)

5.

To the trustee of a trust created under my last will. The trust is known as

%

or is located at

.

Name of Trust Section of Will

6.

Other (Choose this category to specify by name individuals or charities not covered by the previous options.):

%

Name of Individual (first, middle initial, last) or Charity

Relationship

–

–

Spouse Other Individual’s Birth Date(month, day, year)

%

Name of Individual (first, middle initial, last) or Charity

Relationship

–

–

Spouse Other Individual’s Birth Date(month, day, year)

TOTAL

%

I do not want to name secondary beneficiaries at this time. (Note that if you choose this option and either all of your primary

beneficiaries predecease you or a trust you named is no longer in existence, your beneficiary will be what is stated as the default

under the Vanguard Traditional and Roth IRA Custodial Account Agreement in effect at the time of your death.)

0

0

1

SDRF

8.

Account Owner Signature—YOU MUST SIGN BELOW

I understand that all my securities will be held in “street name”—that is, registered in the name of VBS’s clearing agent, Pershing LLC, a

member of the BNY Securities Group and a subsidiary of The Bank of New York Company, Inc., and retained in my account.

I have read and understand the money market settlement information in Section 5, and I agree to and authorize the

settlement terms indicated. I also understand that all open orders will be canceled before the conversion takes place.

I hereby adopt the Vanguard Roth IRA Custodial Account Agreement that is incorporated herein by reference, and I acknowledge having

received and read it. I further acknowledge having received and read the Vanguard IRA

_{Disclosure Statement.}

I have read and accept the most recent Vanguard Brokerage Services Commission and Fee Schedules, which I agree may be

changed by Vanguard Brokerage from time to time.

I understand that Vanguard Brokerage Services is a “limited” broker-dealer and, as such, acts strictly in the role of agent for its clients.

Vanguard Brokerage Services makes no recommendations concerning securities purchases and sales. All securities transactions accepted

by Vanguard Brokerage Services are on an unsolicited basis and are the result of independent action by me or my agent.

Unless I object in writing, I agree that, pursuant to Rule 14b-1(c) of the Securities and Exchange Commission, Pershing is obliged to provide

my name and address to each requesting issuer in which I hold securities in your nominee name. This rule prohibits such issuer from using

my name and address for any purpose other than corporate communications.

If I am a U.S. citizen, a U.S. resident alien, or a representative of a U.S. entity, I certify under penalty of perjury that:

1. The Social Security number or employer identification number I have given on this form is correct.

2. I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been

notified by the Internal Revenue Service that I am subject to backup withholding as a result of a failure to report all

interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding.

Important: Cross out item “2” if you have been notified by the IRS that you are currently subject to backup withholding

because you have failed to report all interest or dividends on your tax return.

3. I am a U.S. person.

If I am a nonresident alien, I am required to complete the appropriate Form W-8 to certify my foreign status. I understand

that I am not under penalty of perjury certifying the above information.

The Internal Revenue Service does not require your consent to any provision of this document other than the certification

required to avoid backup withholding.

I consent and agree to all terms and conditions of the attached Securities Account Agreement and acknowledge that the

Securities Account Agreement contains a predispute arbitration clause that is highlighted in paragraphs 15 and 16 on

page 2 of the attached Securities Account Agreement. I acknowledge receipt of a copy of this Securities Account

Agreement and a current prospectus for the applicable Vanguard money market fund that I have selected.

Please sign here.

➤

–

–

Signature (If the IRA owner is a minor, the custodian identified in Section 2 must sign.) Date (month, day, year)

Accepted: Vanguard Fiduciary Trust Company, Custodian

By:_______________________________________________

Title: ____________________________________________

Thank you for your investment!

S I G N A T U R E

For Vanguard Brokerage Use

Approved By____________________________________________________ Date _________________________________________________________

Master Account #1 ____________________________________________ External #1 __________________________________________________

10 of 10 ©2006 The Vanguard Group, Inc. All rights reserved.

Vanguard Brokerage Services

(VBS

)

Securities Account Agreement

Please detach and keep for your records

In consideration of your accepting and introducing or carrying the requested account (the “account”) in my name or for me for the purchase or sale of securities and other property, I hereby agree with you, and any successor or assign, as follows:

Any reference to “I/my/us” or gender shall include all signers of new account applications for nonretirement and retirement accounts.

Any reference to the term “you and your” shall include any firm that may, as a Clearing Broker or Introducing Broker, carry or service in any way this account. This Agreement and its terms and conditions shall inure to the benefit of such firm(s).

I hereby authorize and instruct you to accept from me any and all orders and instructions for and concerning the said account in regard to the following: (a) The purchase or sale of securities and option contracts.

(b) The payment of money.

(c) The registration and delivery of securities. (d) Any other action with respect to this account.

Payment of money may be made from time to time by delivering or sending to any one of us a check made payable in accordance with the registration of the account.

Confirmations, notices, statements of account, and communications of every kind with reference to said account may be sent or given by you to any one of us. In the event that you receive instructions which you in your sole judgment deem to be conflicting or inconsistent from me/my agent, you may follow any of such instructions at your will, or you may refrain from executing any of such instructions until they shall have been reconciled in writing to your satisfaction, all without liability therefore to you.

We will give you immediate notice in writing of the death of any one of us. The estate of any one of us who shall have died shall be liable, and the survivor or survivors shall continue to be liable, jointly and severally, for any existing debit balance or loss in the account, or which you may later sustain, by reason of the completion of transactions initiated prior to the receipt by you of written notice of the death of any one of us, or incurred in the liquidation of the account. This Agreement shall inure to the benefit of your successors and assigns and shall remain in effect until an authorized member of your firm shall acknowledge in writing the receipt of a written statement from me that I wish to terminate the account, at which time the party giving such notice will not be bound for any further transactions made for the account thereafter. However, he or she shall remain bound for all prior transactions and obligations under this Agreement and for all further deliveries to any of us of any assets in the account and all communications regarding the account.

1. Rules and Regulations—All transactions are subject to applicable

laws and regulations of all federal, state, and self-regulatory authorities, including, but not limited to, the rules and regulations of the Board of Governors of the Federal Reserve System and the constitution, rules and customs of the exchange or market (and clearing house) where such transactions are executed.

2. Definition—Under this Agreement, “securities and other property”

includes, but is not limited to, money, securities of every kind and nature, and all contracts, investments, and options relating thereto, whether for present or future delivery.

3. Accounts Carried as Clearing Broker—If my account is being carried

by a Clearing Broker by arrangement with another broker through whose courtesy my account has been introduced, then until receipt by the Clearing Broker from me of written notice to the contrary, the Clearing Broker may

accept from such other broker without inquiry or investigation (a) orders for the purchase or sale in said account of securities and other property on margin or otherwise, and (b) any other instructions concerning said account. The Clearing Broker shall not be responsible or liable for any acts or omissions of any unaffiliated Introducing Broker or its employees.

4. Liens and Provisions in the Event of Failure to Pay or Deliver—

Whenever I do not, on or before the settlement date, pay in full for any security purchased for my account, or deliver any security sold for such account, you are authorized (subject to the provisions of any applicable statute, rule, or regulation):

(a) Whenever there is any existing or forthcoming indebtedness to you on my part, all orders, securities, and other property now or hereafter held, carried, or maintained by you in your possession and control for any purpose, in or for any of the accounts in my name now or hereafter opened, including any accounts in which I may have an interest, shall be subject to a lien for the discharge of all my indebtedness and other obligations to you in any of the said accounts whenever you consider such a transfer necessary for your protection. In enforcing your lien, you shall have the discretion to determine which securities and property are to be sold and which contracts or orders are to be closed or canceled, all without liability therefore to you;

(b) Until payment or delivery is made in full, to pledge, repledge, hypothecate, or rehypothecate, without notice, any or all securities that you may hold for me (either individually or jointly with others), separately or in common with other securities or any other property, for the sum then due or for a greater or lesser sum and, with retaining in your possession and control for delivery, a like amount of similar securities; and/or

(c) To sell any or all securities that you may hold in any account in which I have an interest, or to buy in any or all securities required to make delivery for my account, or to cancel any or all outstanding orders or commitments for my account.

The reasonable costs and expenses of collection of the debit balance and any unpaid deficiency in my accounts with you, including attorneys’ fees incurred and payable or paid by you, shall be payable to you by me promptly upon demand.

5. Cancellation Provisions—You are authorized in your discretion, should

you for any reason whatsoever deem it necessary for your protection, without notice, to cancel any outstanding orders to close out my account, in whole or in part, or to close out any position made on my behalf. If this is an individual account only, you, in your discretion, are authorized to take the same actions enumerated in the previous sentence in the event I should die.

6. Communications—Communications may be sent to the mailing address

on file with you, or to such other address I may thereafter give in writing, and all communications so sent, whether written by mail, telegraph, or otherwise, shall be deemed to be given to me personally. Notwithstanding the foregoing, reports of the execution of orders shall be conclusive if not objected to in writing by me within the shorter of the applicable settlement cycle of the subject transactions or ten business days after such documents have been transmitted to me by mail or otherwise.

7. Liability—You shall not be liable in connection with the entering,

execution, handling, selling, or purchasing of securities or orders for my account except for gross negligence or willful misconduct on your part, nor shall you be liable for loss caused directly or indirectly by government restrictions, exchange or market rulings, suspension of trading, war, strikes, equipment failure, communication line failure, unauthorized access, theft,

SECAGR

operator errors, acts of terrorism, failure of third parties to follow instructions, or other conditions and occurrences. Further, you shall not be responsible to provide me at any time with information concerning cash/stock dividends, stock splits, mandatory corporate actions, or any other information, advice, guidance, or recommendation with respect to an order by me to purchase or sell securities.

8. Jurisdiction—This Agreement and all transactions made in my account

shall be governed by the laws of the State of New York (regardless of the choice of law rules thereof).

9. Amendment—Except as herein otherwise expressly provided, no

provision of this Agreement shall in any respect be waived, altered, modified, or amended unless such waiver, alteration, modification, or amendment be committed to writing and signed by an officer of yours.

10. Representation—I represent that I have attained the age of majority

under the laws of the state in which I reside, and if I am an employee of any exchange, or of any corporation that any exchange controls, or of a member of any firm registered on any exchange, or of a bank, trust company, insurance company, or any corporation, firm, or individual engaged in the business of dealing in securities either as broker or principal, that I will abide by the rules of the regulatory agencies and your policies. If at any future time I become so employed, I will notify you promptly. No one other than I has or will have an interest in my account except as I shall advise you in writing.

11. Severability—If any provision or condition of this Agreement shall be

held to be invalid or unenforceable by any court or regulatory or self-regulatory agency or body, such invalidity or unenforceability shall attach only to such provision or condition. The validity of the remaining provisions and conditions shall not be affected thereby, and this Agreement shall be valid and enforceable as if any such invalid or unenforceable provision or condition were not contained herein.

12. Order Entry Provisions—I acknowledge that all orders must be entered

verbally with one of your Brokerage Associates; through VBS®_AutoBroker®_, the automated telephone investment service; or through the Internet trading system, and that written orders will not be accepted. I acknowledge responsibility for the confidentiality and use of the account number assigned to me for all securities and other transactions initiated through these means. Any orders communicated to VBS through these means will be considered to have been sent by me. I also agree to notify VBS immediately if I become aware of:

(a) Unauthorized use, theft, or loss of the account number assigned to my VBS account.

(b) Receipt of confirmation of an order that I did not place. (c) Failure to receive an accurate written confirmation of an order or

its execution.

13. Restricted Securities—Prior to placing an order for the sale or transfer

of any securities subject to Rule 144 or 145(d) under the Securities Act of 1933 or any other rule relating to restricted or control securities or securities that may otherwise be contractually restricted, I agree that I will advise VBS of the status of the securities and furnish VBS with the necessary documents (including opinions of legal counsel, if VBS so requests) or any other required waivers or consents to satisfy legal transfer requirements. These securities may not be sold or transferred until they satisfy legal transfer requirements. Even if the necessary documents are furnished in a timely manner, there may be delays in the processing of these securities, which may result in delays in the delivery of securities and the crediting of cash to my Account. I am responsible for any delays, expenses and losses associated with compliance or failure to comply with all of the requirements and rules relating to contractually restricted, restricted or control securities.

14. Clearing Broker—VBS clears its securities business on a fully disclosed

basis through Pershing LLC, a member of the BNY Securities Group and a subsidiary of The Bank of New York Company, Inc., and a member of the New York Stock Exchange, Inc. I understand my account will be carried in accordance with this written agreement.

15. Arbitration Disclosures—This Agreement contains a predispute arbitration clause. By signing an arbitration agreement the parties agree as follows:

• All parties to this Agreement are giving up the right to sue each other in court, including the right to a trial by jury, except as pro-vided by the rules of the arbitration forum in which a claim is filed. • Arbitration awards are generally final and binding; a party’s ability to

have a court reverse or modify an arbitration award is very limited. • The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings.

• The arbitrators do not have to explain the reason(s) for their award. • The panel of arbitrators will typically include a minority of

arbitrators who were or are affiliated with the securities industry. • The rules of some arbitration forums may impose time limits for

bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court.

• The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Agreement. 16. Agreement to Arbitrate Controversies—It is agreed that any controversy

between or among the undersigned, Pershing, and Introducing Firm, or any of them, arising out of Pershing’s or Introducing Firm’s business or this Agreement, shall be submitted to arbitration before the New York Stock Exchange, Inc., or, if the transaction took place on another exchange, then to that exchange or the NASD Regulation Inc., as the undersigned may elect and in accordance with the rules obtaining of the selected organization. Arbitration must be commenced by service upon the other party of a written demand for arbitration or a written notice of intention to arbitrate, therein electing the arbitration tribunal. In the event the undersigned does not make such election within five (5) days of such demand or notice, then the under-signed authorizes Pershing or the Introducing Firm to do so on behalf of the undersigned. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any predispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this Agreement except to the extent stated herein.

17. The Laws of the State of New York Shall Govern—This Agreement

and its enforcement shall be governed by the laws of the state of New York without giving effect to its conflicts of laws provisions.

18. Credit Investigation—I authorize VBS in its discretion, at any time and

from time to time, to make or obtain reports concerning my credit standing and business conduct. I agree that, without notifying me, VBS may request a new credit report in connection with any review, extension, or renewal of credit. I may make a written request for a description of the nature and scope of the reports made or obtained by VBS and the same will be provided to me within a reasonable period of time.

19. Change in Information—I agree to notify VBS promptly in writing of any

changes in information that I supplied when opening my account including, but not limited to, change of address, change in investment objectives, and change in financial circumstances. Among other things, I represent that, except as disclosed to VBS in writing, neither I or any member of my immediate family is (1) a director, 10% beneficial owner, policy making officer or otherwise an “affiliate” of any publicly traded company; (2) affiliated with or employed by a securities exchange or corporation of which an exchange controls the majority of the capital stock, or a securities broker or dealer, or any bank, thrift institution, trust company, insurance company, investment fund, including a registered investment company, or any corporation, firm or individual engaged in the business of dealing as a broker or principal in securities, bills of exchange, acceptances or other forms of commercial paper. If I or another member of my immediate family become so employed, I shall notify VBS promptly in writing. SECAGR

The Vanguard

_{Traditional IRA,}

SEP–IRA, and Roth IRA

Changes to the IRA Rules

Regulatory changes and the Economic Growth and Tax Relief Reconciliation Act of 2001 have changed many of the rules that govern IRAs. This booklet (The

Vanguard Traditional IRA, SEP–IRA, and Roth IRA Disclosure Statement, Custodial Account Agreement, and Securities Account Agreement) has been revised for

these changes. Here’s a brief overview of the changes:

• Higher maximum IRA contributions. For 2001, the maximum contribution was $2,000. For 2002 and 2003, the maximum increased to $3,000. (As before, the

most you can contribute to an IRA is 100% of earned income if that amount is less than the maximum contribution of $3,000.) The maximum contribution will increase in future years.

• “Catch-up” IRA contributions for people 50 and over by December 31 of the year for which they are contributing. Beginning in 2002, people who

are 50 or over can contribute an extra $500 to their IRAs. Therefore, a person who was 50 or over in 2002 can contribute a total of $3,500 for 2002—that is, the new maximum contribution of $3,000 plus a catch-up contribution of $500. Both the maximum contribution and the catch-up contribution amounts will increase in future years.

• Consolidating distributions from employer plans in IRAs. Beginning in 2002, distributions from most types of retirement plans (including 401(k) plans,

pension and profit-sharing plans, 403(b) plans, and 457 plans) can be rolled over into an IRA. Also, after-tax contributions to an employer plan may now be rolled over into an IRA.

• Changes in required minimum distributions (RMDs). The method for calculating RMDs (which apply to owners of traditional IRAs who have reached age

701_⁄

2) has been simplified. In most cases, IRA owners can now take smaller RMDs from their IRAs.

If you have any questions about the changes to the IRA rules, call us at 1-800-205-6189 on business days from 8 a.m. to 8 p.m. or on Saturdays from 9 a.m. to 1 p.m., Eastern time.

Contents

Vanguard Traditional and Roth IRA Disclosure Statement

Section I—Revocation . . . . 2

Section II—Establishment of Your Account . . . . 2

Section III—Contributions . . . . 3

Section IV—Transfers . . . . 8

Section V—Rollover Contribution . . . . 8

Section VI—Conversions From a Traditional IRA to a Roth IRA . . . . 9

Section VII—Taxation of Distributions . . . . 10

Section VIII—Methods of Distribution . . . . 12

Section IX—Simplified Employee Pension . . . . 13

Section X—Income Tax Returns . . . . 13

Section XI—Prohibited Transactions . . . . 14

Section XII—Other Information . . . . 14

Vanguard Traditional and Roth IRA Custodial Account Agreement

Article II—Contributions to Account . . . . 16

Article III—Investment of Account . . . . 17

Article IV—Distribution of Account . . . . 18

Article V—Transfers . . . . 21

Article VI—Reporting, Disclosure, and Fees . . . . 21

Article VII—Amendment, Termination, and Assignment . . . . 22

Article VIII—Miscellaneous . . . . 22

Vanguard Brokerage Services

_{Securities Account Agreement}

1

2

V A N G U A R D® _{R E T I R E M E N T R E S O U R C E C E N T E R}

Introduction

This Disclosure Statement describes the general requirements and features of both a traditional and a Roth IRA, as well as the specific features of the Vanguard Traditional and Roth IRA Custodial Account Agreement. This Disclosure Statement is provided in accordance with Internal Revenue Service (IRS) regulations. (Where the requirements for a traditional and a Roth IRA are the same, this Disclosure Statement refers to both types of accounts as an “IRA.”)

Section I

Revocation

You may revoke your Vanguard IRA®_{at any time within seven days after it}

is established by mailing or delivering a written notice of revocation to The Vanguard Group, P.O. Box 2600, Valley Forge, PA 19482-2600. Any notice of revocation will be deemed mailed on the date of postmark (or if sent by certified or registered mail, the date of certification or registration) if it is deposited in the U.S. Postal Service in an envelope or other appropriate wrapper, first-class postage prepaid, properly addressed. Upon revocation, you will be entitled to a full refund of your entire IRA contribution without adjustment for administrative expenses, sales commissions (if any), or fluctuations in market value. If you have any questions concerning your right of revocation, please call 1-800-205-6189 during normal business hours.

Section II

Establishment of Your Account

A. Statutory Requirements

An IRA is a trust or custodial account established for the exclusive benefit of you and your beneficiaries. The Internal Revenue Code of 1986, as amended, provides for several types of IRAs, including a “traditional” IRA and a “Roth” IRA. You must clearly designate on the forms establishing your IRA that your account is either a traditional IRA or a Roth IRA. An IRA must be created by a written document that meets all of the following requirements:

1. Bank trustee or custodian. An IRA must be established with a qualified

trustee or custodian, such as Vanguard Fiduciary Trust Company, which is a bank or other person approved by the IRS. You cannot be your own trustee or custodian.

2. Cash contributions up to annual contribution limit. All contributions to

your IRA, excluding rollover or conversion contributions as described in Sections V and VI, must be made in cash. The total amount of contributions, other than rollover or conversion contributions as described in Sections V and VI, for any taxable year to your traditional and Roth IRAs may not exceed the contribution limit in effect for such taxable year as described in Section III[A].

3. Nonforfeitability. The balance of your IRA account must be fully vested

and nonforfeitable at all times.

4. Prohibitions against life insurance and commingling. No part of your

IRA assets may be invested in life insurance contracts, nor may your IRA assets be commingled with other property except in a common trust fund or common investment fund.

5. Distribution rules. Your IRA must comply with certain minimum

distribution requirements, which are described in Section VIII. (No age 701_⁄ 2

distribution requirements apply for Roth IRAs.)

B. Tax Consequences of Traditional IRA

In general, the federal income tax consequences of establishing a traditional IRA are the following:

1. Tax-deferred earnings. Earnings and gains on your traditional IRA

contributions will not be subject to federal income taxes until they are actually distributed.

2. Deductible contributions. You may be permitted to make contributions to

your traditional IRA that are deductible for federal income tax purposes in an amount up to the lesser of the contribution limit in effect for such year or 100% of your current-year compensation. You are permitted to make deductible traditional IRA contributions if neither you nor your spouse is an active participant in an employer-maintained retirement plan, or if your adjusted gross income for the taxable year does not exceed certain dollar limits. To the extent that your traditional IRA contributions are not deductible, they may be treated as “nondeductible contributions” that must be reported on your federal income tax return. See Section III[D] for more information.

3. Taxable distributions. Distributions from your traditional IRA will

generally be taxable as ordinary income in the year of receipt, with the exception that if you have made any nondeductible contributions or after-tax rollover contributions to your traditional IRA, part of your traditional IRA distributions may be treated as a nontaxable return of your nondeductible traditional IRA contributions or after-tax rollover contributions. Any distributions you receive from your traditional IRA prior to age 591_⁄

2may be

subject to an additional 10% tax (although exceptions may apply—see Section VII[C]). You must start receiving certain minimum distributions from your traditional IRA beginning by April 1 of the year following the year in which you attain age 701_⁄

2(see Section VIII[B]).

4. Tax-free rollovers. You may be eligible to make a rollover contribution to

your traditional IRA of cash or other assets you receive from another individual retirement plan or employer-maintained retirement plan. In addition, you may be eligible to roll over the taxable amount you withdraw from your traditional IRA to another individual retirement plan or an employer-maintained retirement plan. See Sections V and VI for more information.

5. State taxes. The state tax consequences of your traditional IRA will vary

from state to state. You are strongly encouraged to consult a tax adviser to determine the state tax consequences of establishing a traditional IRA.

3

T H E V A N G U A R D G R O U P

C. Tax Consequences of Roth IRA

In general, the federal income tax consequences of establishing a Roth IRA are the following:

1. Tax-deferred earnings. Earnings on contributions to a Roth IRA will

accumulate on a tax-deferred basis and may ultimately be tax-free if the earnings are part of a “qualified distribution.” (A “qualified distribution” is generally a distribution made to you after age 591_⁄

2and after you have held your Roth IRA account at least five years [see paragraph 3, below].)

2. Nondeductible contributions. Contributions to a Roth IRA are not

deductible for federal income tax purposes.

3. “Qualified” distributions are completely tax-free. A distribution from

a Roth IRA will be tax-free for federal income tax purposes as long as it is a “qualified distribution.” A qualified distribution is a distribution from a Roth IRA: (1) made after a five-year holding period, and (2) made after age 591_⁄

2, due to death or disability, or for the first $10,000 of “qualified first-time home purchase expenses.” See Section VII[B] for more details.

4. “Nonqualified” distributions are tax- and penalty-free return of contributions first; taxable earnings last. Any distribution that is not a

qualified distribution (for example, a distribution taken before you hold your Roth IRA for five years) is first considered a tax- and penalty-free distribution of your contributions to your Roth IRA. Once an amount equaling the cumulative contributions to your Roth IRA has been recovered tax-free, all further distributions that are not qualified distributions will be subject to both ordinary income tax and possibly an additional 10% penalty tax (if you are under age 591_⁄

2). See Section VII[B] for more details.

5. Tax-free Roth IRA-to-Roth IRA rollovers. You may be eligible to make a

rollover contribution to your Roth IRA of cash or other assets you receive from another Roth IRA. In addition, you may be eligible to roll over the amount you withdraw from your Roth IRA to another Roth IRA. See Section V for more details.

6. Traditional IRA-to-Roth IRA conversions. If you have adjusted gross

income for a year of $100,000 or less (on a single or joint filing basis) and you are not a married individual filing a separate tax return, you may roll over or “convert” a traditional IRA into a Roth IRA.

You will owe tax in the year of the conversion on the amount converted to the Roth IRA (less any nondeductible contributions that you would have recovered had you simply received the conversion amount as a traditional IRA distribution). However, you will not owe a 10% early withdrawal penalty tax on the conversion amount. For purposes of qualifying for tax-free distributions from your Roth IRA, there is a separate five-year holding period for the amounts attributable to each year you make a “conversion” from a traditional IRA to a Roth IRA.

7. State taxes. The state tax consequences of your Roth IRA will vary from

state to state. You are strongly encouraged to consult a tax adviser to determine the state tax consequences of establishing a Roth IRA.

Section III

Contributions

A. Amount and Timing of Traditional and Roth IRA Contributions Maximum annual contributions to all IRAs. The total amount of

contributions to all of your IRAs (both traditional and Roth IRAs) for any taxable year (excluding any rollover or conversion contributions as described in Sections V and VI) may not exceed the lesser of the contribution limit in effect for such taxable year as described below or 100% of your compensation for the taxable year. If you reach age 50 before the close of the tax year for which you are making a contribution, your annual contribution limit is increased by $500 for taxable years beginning in 2002 through 2005, and $1,000 for any taxable year beginning in 2006 or thereafter as described below. In addition, the maximum contribution permitted under a Roth IRA is phased out to $0 for individuals earning above a certain level of adjusted gross income (see Section III[C]). The annual IRA contribution limits for 2002 and later years are shown below.

Year Maximum Annual Contribution Maximum Annual Contribution Individuals Under Age 50 Individuals Age 50 or Older

2002 $3,000 $3,500 2003 $3,000 $3,500 2004 $3,000 $3,500 2005 $4,000 $4,500 2006 $4,000 $5,000 2007 $4,000 $5,000 2008 $5,000 $6,000

For years after 2008, the contribution limit will be periodically indexed for inflation in $500 increments.

Definition of compensation. For purposes of the IRA contribution limits,

your compensation includes all wages, salaries, tips, professional fees, bonuses, and other amounts you receive for providing personal services, and any earned income from self-employment. It does not include earnings and profits from property such as dividends, interest, or capital gains, or amounts received as a pension or annuity, or as deferred compensation. Your compensation includes any taxable alimony or separate maintenance payments you may receive under a decree of divorce or separate maintenance.

IRA for your spouse. If both you and your spouse earn compensation for a

taxable year, you may each make contributions to a traditional or Roth IRA up to the lesser of the contribution limit in effect for such taxable year or 100% of your compensation for the taxable year, although your Roth IRA contribution limit may be phased out based on your adjusted gross income for the year (see Section III[C]). In addition, under a special rule for spousal IRAs (explained in Section III[E]), contributions of up to the contribution limit in effect for such taxable year may be made to either a traditional IRA or, subject to the adjusted gross income phase-out discussed in Section III[C], a Roth IRA of a spouse, regardless of the income level of the spouse, provided the married couple files a joint tax return and has total compensation at least equal to their combined IRA contributions.

Contributions in cash. All contributions to your traditional or Roth IRA (other

Contributions up to the date your return is due (April 15). You may make

contributions to your traditional or Roth IRA for a taxable year at any time during the year, either periodically or in a lump sum, or in the next year, up to the due date for filing your federal income tax return for the taxable year, not including extensions. For taxpayers who file on a calendar-year basis, the latest date for any year is April 15 of the following year. If you do not inform the Custodian of the year for which an IRA contribution is made, the Custodian will assume that the contribution is made for the year in which it is received.

Only Roth IRA contributions permitted after age 701_⁄

2. If you are

otherwise eligible, you are permitted to make Roth IRA contributions even after you have attained age 701_⁄

2. You are not permitted to make traditional

IRA contributions (either deductible or nondeductible) after you have attained age 701_⁄

2(other than rollover contributions as described in Section V).

Maximum contributions not required. You do not have to contribute to

your traditional or Roth IRA every year, nor are you required to make the maximum contribution for any year. However, if you decide in any year not to make the maximum IRA contribution, you may not make up the missed contribution amount in later years. Under the Vanguard Traditional and Roth IRA, there is a minimum initial contribution required when you establish your account, as described in Section XII[D].

Custodial or trustee fees. Custodial or trustee fees that are billed separately

and paid by you in connection with your IRA may be separately deductible on your federal income tax return as ordinary and necessary business expenses (subject to the 2% adjusted gross income limit for miscellaneous deductions). The separate payment of your IRA custodial or trustee fees will not serve to limit the maximum amount of contributions you are otherwise eligible to make to your IRA. Under the Vanguard Traditional and Roth IRA, you are provided the opportunity to pay separately your annual custodial or trustee fee, as explained in Section XII[E].

B. Traditional IRA: Deductible Contributions

Contributions to your traditional IRA may be deductible in whole or in part for federal income tax purposes, as determined by the rules summarized below. Remember that contributions to a Roth IRA are not deductible for federal income tax purposes. You should contact your tax adviser to determine the deductibility of IRA contributions for state income tax purposes.

Fully deductible contributions if you do not participate in an employer plan. If neither you nor your spouse is an active participant in an

employer-maintained retirement plan, your annual traditional IRA contributions up to the lesser of the contribution limit in effect for the taxable year (as described in Section III[A]) or 100% of current-year compensation are generally fully deductible (regardless of your level of adjusted gross income).

Phase-out of deduction if you participate in an employer plan. If you

are an active participant in an employer-maintained retirement plan for a taxable year, your traditional IRA deduction is phased out as your adjusted gross income approaches the upper limits of the applicable “phase-out range.” The phase-out ranges for joint and single filers for 2002 and later years are shown in the next column.

Formula for deduction phase-out for active participants. As stated, if you

are an active participant in an employer-maintained retirement plan for a taxable year, your traditional IRA deduction limit for the year is phased out as your adjusted gross income exceeds the applicable adjusted gross income threshold for the tax year. This phase-out is accomplished as follows: Your maximum traditional IRA deduction is reduced by an amount, rounded down to the nearest $10, that bears the same ratio to the maximum deductible amount as your “excess” adjusted gross income for the taxable year—i.e., for 2003, if you are married and file a joint return, your adjusted gross income over $60,000, or over $40,000 if you are single—bears to $10,000. (For joint filers, this figure increases to $20,000 for the year 2007 and later.)

Example: In 2003, a single individual under age 50 has adjusted gross

income in the amount of $44,000 and is an active participant in an employer-maintained retirement plan. The individual may make traditional IRA contributions for the taxable year that are deductible for federal income tax purposes in the amount of $1,800 (assuming he or she has at least $1,800 of compensation)—determined as follows:

2003 maximum traditional IRA deduction...$ 3,000

Excess adjusted gross income...$44,000 – $40,000 = $4,000 Reduction in traditional IRA deduction ...$ 3,000 x $ 4,000 = $1,200

$10,000 Resulting traditional IRA deduction limit ...$ 3,000 – $ 1,200 = $1,800 If this individual makes $1,800 of deductible traditional IRA contributions for the year, he or she may also make nondeductible IRA contributions to a traditional IRA or a Roth IRA in the amount of $1,200, resulting in total IRA contributions of $3,000 for the year. If the individual in the example above was age 50 or older, his maximum deduction of $3,500 for 2003 would be reduced by $1,400, resulting in a deduction limit of $2,100).

Deduction limit for spouse. If you are married and file a joint return, and

neither you nor your spouse is an active participant in an employer-maintained retirement plan, the traditional IRA contributions for each spouse for the taxable year will be fully deductible regardless of the level of your combined adjusted gross income.

If you are married and file a joint return and both you and your spouse are active participants in employer-maintained retirement plans, the traditional IRA deduction limit for each spouse for the taxable year is phased out as your combined adjusted gross income exceeds the applicable threshold (see the phase-out ranges above). For example, for 2003 the traditional IRA deduction limit for each spouse for the taxable year is phased out as your combined adjusted gross income exceeds $60,000.

4

V A N G U A R D® _{R E T I R E M E N T R E S O U R C E C E N T E R}

Joint Filers Single Filers Year Phase-Out Range Year Phase-Out Range