Mutual Fund Direct

At this time, there are no additional fees for Mutual Fund Direct accounts, and Vanguard will notify you of any changes to our fee structure.

You will receive a new login (separate from Vanguard.com and Vanguard’s mobile app) to access your MFD account. You will receive confirmation of your account number as well.  Your account number, instructions for creating your new login credentials and setting up new security details will be provided in your welcome letter in April 2026.

Restrictions will be placed on your account on April 17, 2026. You won’t be able to make any new purchases, exchanges, or transfers into your existing account. This includes recurring purchases, recurring exchanges, and direct deposits, which will be suspended when the restrictions are applied. However, you'll retain the ability to redeem your assets or transfer the funds to another firm.

Most account information will be carried over in your MFD account. However, certain services will be discontinued or modified for Mutual Fund Direct accounts. If you’re currently enrolled in account services, you should review your MFD account setup and familiarize yourself with the differences in services. A few of our more popular services are highlighted below:

• Connected bank accounts: If you previously linked a bank to your mutual fund only account, you’ll want to verify that information on your MFD account. Most banking information will be retained, however in some cases, we’ll need an updated bank authorization agreement to reestablish the connection.
• Recurring transactions and direct deposits: Restrictions preventing these recurring purchases in the account will be applied on April 17 and will remain on all MFD accounts. If you have established a direct deposit to this account, you will need to contact the source to cancel the transaction and direct the deposit to a different account before these restrictions are applied.
• Required minimum distributions (RMDs) and calculation: If you had an RMD or recurring withdrawals set up on your account, they will likely be retained as previously setup. We will notify you if the service must be terminated. If you have a Vanguard Brokerage Account and Mutual Fund Direct account, RMDs will be calculated separately. Please review your account setup to ensure your calculation is correct and you are meeting your withdrawal requirement.
• Beneficiaries: Generally, your beneficiary designation will remain the same for your MFD account, but we encourage you to review your selection. Remember that your beneficiary designations on your retirement account generally supersede any other instructions—even those in your will. You may want to consult with an estate attorney to review your options.
• Checkwriting: Any checks issued from your mutual fund only account must be fully processed by April 17,2026. Any attempt to cash or process a check after this date could result in a bounced payment. Checkwriting services are not available for MFD accounts, and any unused checks should be shredded.
• Cost Basis: Cost basis will only be available on statements for nonretirement accounts that are tax-reportable on Form 1099-B. If you had a MinTax or HIFO (Highest-In, First-Out) cost basis method election, you will now be defaulted to first in, first out (FIFO). If you did not make a cost basis method election and had the default method of average cost, you will now have a new default of FIFO.
• Dividend and Capital Gains Election: The dividend and capital gain election to reinvest into a different fund is no longer supported. If you have this election, you will be defaulted to reinvest into the same fund.

Have questions about these services list above? Contact us at 877-662-7447 and we’ll be glad to help with your account services.

You have three options:

1. Transfer your assets to another investment provider*. If you choose this route, you will initiate the transfer process directly with your new provider.
2. Redeem your shares and withdraw your account balance (tax implications may apply).
3. Take no action and remain in a Mutual Fund Direct account with restricted services.

*If you have an education savings account (ESA), you have the option to transfer the ESA to a 529 plan. If you’d like to learn more about this option, visit vanguard.com/529decision or call us at 877-662-7447 to speak with an Education Savings associate.

Yes. Unless you transfer your account out of Vanguard, your investments will remain on the legacy mutual fund only platform, and you will continue to be a Vanguard client. This platform is being retired which will affect how your account is serviced, but not where your account is held.

You will continue to see your existing brokerage account information when you log-in to Vanguard.com or use the mobile app. All MFD account information will appear separately, requiring distinct credentials and navigation.

No. Your mutual fund holdings will remain invested in the same funds unless you choose to take action by transferring your assets to an alternative investment provider, or redeem your shares and withdraw your account balance

Your historical statements, monetary confirmations, and tax forms will be available to view in accordance with Vanguard's record retention policies.

No. There are no additional tax implications for your MFD account caused by these changes. If you have specific tax questions, we encourage you to consult a tax advisor about your individual situation.

Although it may have a zero balance, your account will be maintained to ensure you have access to your 2026 tax forms and historical account information. As a result, you will receive a letter to confirm your account number and instructions for accessing your online MFD account.