The Vanguard Group, Inc.

You’re making a good choice

Welcome to the Wawa, Inc. 401(k) Plan, a valuable Wawa, Inc., benefit. Use its tax advantages, savings incentives, and investment options to help you achieve your financial goals.

The information contained within this site is designed to give you a general description of the main features of the plan. To find up-to-date information on your plan’s features, log on to your account at vanguard.com/retirementplans.

Note: If you hold multiple accounts with Vanguard, you may need to select Employer plans after logging on to vanguard.com/retirementplans.

You can also refer to the Summary Plan Description or contact Vanguard.

Whenever you invest, there’s a chance you could lose the money.

Plan rules for the Wawa, Inc. 401(k) Plan

You can get more out of your plan if you understand a few rules about managing your account, investing, and accessing your money.

Plan provision	Description
Eligibility	You are eligible to enroll in the plan on the first day of the month following your hire date.
Enrollment	To enroll online, go to vanguard.com/enroll; you can use your plan number: 097527. To enroll by phone, call Vanguard at 800‑523‑1188. Whether enrolling online or by phone, you will be asked the percentage of your pay you want to contribute and how you want to invest your money.
Beneficiaries	Be sure to name beneficiaries for your account. Properly designating beneficiaries ensures that, when you die, your hard-earned savings are distributed according to your wishes. You will be prompted to name beneficiaries immediately following the online enrollment process. To name beneficiaries later, or to update your beneficiary information, simply log on to your account at vanguard.com/retirementplans.
Employee contributions	You can contribute from 1% to 50% of your pay on a pre-tax or Roth 401(k) after-tax basis. The IRS also limits contributions. For current IRS limits, visit vanguard.com/contributionlimits. If you contributed to a previous employer’s plan this year, be aware that the annual IRS limit applies to the sum of your contributions to all employer plans for this year. You should monitor your contributions to ensure that your total contributions for this year do not exceed the annual IRS limit. If you are age 50 or older, or will turn 50 by year’s end, and you contribute the maximum allowed, you may make catch-up contributions. Catch-up contributions allow you to save above the normal IRS annual limit on a pre-tax or Roth basis. To help you save more, you can have your pre-tax contribution rate automatically increased for you each year in whatever month you choose. Simply decide how much more you’d like to save annually—from one to three percentage points. You can set up automatic increases anytime. These annual increases will continue until your contributions reach the plan or the annual IRS limit, whichever is less. You can set up, change, or stop your automatic annual contribution increases at vanguard.com/retirementplans or by speaking with a Vanguard Participant Services associate at 800-523-1188. You cannot access this service through VOICE.
Company contributions	For every $1 you contribute (up to 3% of your pay), Wawa, Inc., will contribute $1 to your account. For every $1 you contribute of the next 2% of your pay, Wawa, Inc., will contribute $0.50 to your account. Participants must be at least 21 years old, have worked at least 12 months, and have reached 1,000 hours of service to be eligible for matching contributions.
Rollovers	If you have money in a former employer's qualified retirement plan, in most cases you can roll it over to your current employer plan account at Vanguard. Keep in mind that rollovers from the Wawa Inc., Employee Stock Ownership Plan (ESOP) are not permitted. You can initiate a rollover by logging on to your account at vanguard.com/retirementplans. If you need assistance, call Vanguard.
Vesting	Vesting refers to your right of ownership to the money in your account. You are immediately vested in all of your own contributions and earnings as well as employer matching contributions and earnings.
Managing your account	You can take the following actions anytime by logging on to vanguard.com/retirementplans or calling Vanguard at 800-523-1188: Join the plan. Stop or change your payroll deductions. Change how your contributions are invested. Move money between funds. Request loans and withdrawals.
Loans	Although the plan is designed for long-term savings, you can borrow from your account. Keep in mind that your paycheck would be reduced to repay the loan with interest, and that you could owe taxes and a 10% federal penalty tax if you fail to repay on time or when you leave Wawa, Inc. Here are the loan provisions: Minimum amount: $1,000. Maximum amount: 50% of your account balance up to $50,000 (or less if you have had an outstanding loan in the past 12 months). Maximum outstanding loans: two (including all loans from ESOP and 401(k) plans). Repayment: up to 4½ years for a general purpose loan; up to 15 years for a loan taken to purchase a principal residence. Origination fee (per loan): $50 when applying online or through VOICE; $100 when applying by phone with personal assistance from a Vanguard associate. Annual maintenance fee (per loan): $25.
Withdrawals*	You can withdraw money from your account under certain circumstances. Age 59½ withdrawals. Once you reach age 59½, you can make withdrawals from your entire account balance. Hardship withdrawals. You can withdraw money from your account for a serious financial hardship, including: Purchase of a principal residence. Unreimbursed medical expenses. Tuition and fees for postsecondary education. Prevention of eviction or mortgage foreclosure. Burial or funeral expenses for a parent, spouse, child, or dependent. Certain expenses for repairing your principal residence if the expenses qualify as a casualty deduction. Before making a hardship withdrawal, you must exhaust other options, including loans. Rollover withdrawals. You can withdraw all or part of any money that you rolled over from another plan. Roth after-tax withdrawals. You can withdraw all or part of your Roth contributions and earnings. The withdrawal can be tax-free if you meet certain conditions. Traditional after-tax withdrawals. You can withdraw all or part of your traditional after-tax contributions and earnings. Company match withdrawals. After five years of participation in the plan, you can withdraw company matching contributions and earnings. However, before being permitted to take a company match withdrawal, you must first take a rollover withdrawal and a traditional after-tax withdrawal. Company match withdrawals are available only for matching contributions up to and including the year 2001. Matching contributions made after 2001 are not included in this withdrawal option. Profit-sharing and ESOP withdrawals. Once you reach age 59½, you can withdraw all or part of your account’s ESOP money and profit-sharing contributions and earnings.
Distributions*	You are eligible to receive your account balance upon retirement, termination of employment, or total and permanent disability.

*Taxes: Taking money from your retirement account can affect how much you’ll have to pay in taxes. You’ll owe taxes on pre-tax money. You won’t owe taxes on Roth earnings as long as you are age 59½ or older and it’s been at least five years since your first Roth contribution. If required by law, Vanguard will withhold some taxes for you. You may need to pay a 10% federal penalty tax if you take money out early.

Whenever you invest, there’s a chance you could lose the money.

Your investment lineup

You have a variety of retirement plan investment options so you can create an investment mix that fits your needs. Your investment options are divided into two tiers—all-in-one investments and core investments, which are explained below.

Get detailed information about your investment options.

Tier 1: All-in-one investments

How to invest your money among stocks and bonds—now and as you grow older—is one of your most important financial decisions.

Each Vanguard Target Retirement Trust II provides a professionally maintained, diversified mix of investments that shifts its emphasis to more conservative investments as the year of retirement nears. So, if you choose this tier, consider making a single Target Retirement Trust your only plan investment.

Even though Target Retirement Trusts simplify the investment process, they still require some monitoring to ensure that the portfolio is in line with your current situation.

Consider choosing the trust with the date that's closest to the year when you expect to retire. If you are already retired, consider choosing Vanguard Target Retirement Income Trust II. This trust seeks to provide current income and some capital appreciation to retirees.

Tier 2: Core investments

Core investments can offer the basic ingredients for a diversified, well-balanced portfolio. You can combine several to create a portfolio that suits you. If you’d like to create your own diversified investment mix, you may want to start with the funds in this tier.

Some core investments are index funds, which can provide low-cost access to broad segments of the stock and bond markets. Also known as passively managed funds, index funds generally use a buy-and-hold strategy to try to track the performance of a given market.

Why would anyone invest in an index fund and earn just what the market earns? Because index funds generally cost less to run than actively managed funds, whose managers try to outperform the market.

Note that the “market” represents all investor dollars. When some investors’ dollars outperform the market, other investors’ dollars must underperform. After subtracting fund costs—including management fees, administrative expenses, and trading commissions—actively managed funds can face difficulties over time just to keep pace with the market.

This tier also includes a more conservative stable value fund.

A note about risk
Whenever you invest, there’s a chance you could lose the money. Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date. Diversifying means having different types of investments. It doesn’t guarantee you’ll make a profit or that you won’t lose money. Bond funds are made up of IOUs, primarily from companies or governments. These funds risk losing value if the debt isn’t repaid on time. Also, bond prices can drop when interest rates rise or the issuer’s reputation suffers. PIMCO Total Return Fund uses financial contracts called derivatives to try to reduce risk and improve returns. But derivatives have risks of their own. These include the chance that the fund manager will misjudge the direction of the market or that the fund can’t exit the contracts at the best time. It’s possible for the fund to lose all of the money invested in derivatives—and more. Small- and mid-cap funds are made up of the stocks of small and medium-sized companies. These companies have fewer financial resources than larger companies. Because of that, their stock prices can be more affected by swings in the economy. Non-U.S. stocks or bonds have risks tied to the political and economic stability of their country or region. And if the value of the foreign currency falls, the value of the stocks or bonds would also fall.

As its name suggests, a stable value investment tries to keep its share price constant. But this is not guaranteed, and it’s possible to lose money with an investment like this. Unlike bank savings accounts, this investment is not insured by the U.S. government. It’s also not insured by your employer or Vanguard.

Vanguard Retirement Savings Trust Ill and Vanguard Target Retirement Trusts are collective trusts, not mutual funds. This type of investment is offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objective, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts.

Collective trusts and separately managed accounts are special types of investments. They’re offered only in retirement plans like yours. Before you invest in one, know its objective, risks, charges, and expenses. Consider these things carefully.

Need help choosing investments?

Meeting your long-term financial goals starts with the right asset mix.

If you’re uncertain what your appropriate asset mix is, consider completing Vanguard’s Investor Questionnaire at vanguard.com/assetmix. Simply answer 11 questions about your investment objectives, time horizon, and comfort with risk, and receive a recommended asset mix. You can use the recommended mix to help you choose your funds.

A word about Target Retirement Trusts

Also keep in mind that your plan offers the full suite of Vanguard Target Retirement Trusts II. Each of these trusts provides a professionally maintained, diversified mix of investments all in one trust. Each trust shifts its emphasis to more conservative investments as the year of retirement nears. So you can consider making a single Vanguard Target Retirement Trust II your only plan investment.

A note about risk
Whenever you invest, there’s a chance you could lose the money. Investments in Target Retirement Trusts are subject to the risks of their underlying funds. The year in the trust name refers to the approximate year (the target date) when an investor in the trust would retire and leave the workforce. The trust will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Trust is not guaranteed at any time, including on or after the target date. Diversifying means having different types of investments. It doesn’t guarantee you’ll make a profit or that you won’t lose money.

Additional advice services
Personal Online Advisor, powered by Financial Engines, provides an objective review of your investment portfolio, forecasts your chances of reaching your retirement goals, offers fund recommendations, and helps you monitor your investments. You can also analyze various "what-if" scenarios and include assets outside of Vanguard and income sources in your retirement planning.

Personal Online Advisor is available at no cost to you.

If you would like a professional to manage your investments, your plan offers the Vanguard Managed Account Program, powered by Financial Engines. The service will select your funds, invest your money, and periodically make changes to your asset mix to suit your goals. It can also consider money you've saved outside of your retirement savings plan when developing your personalized investment strategy.

The annual fee for the program is based on a percentage of your assets ($60 minimum).

Vanguard Target Retirement Trusts are collective trusts, not mutual funds. This type of investment is offered only in retirement plans like yours. Before you invest, get the details. Know and carefully consider the objective, risks, charges, and expenses. Vanguard Fiduciary Trust Company manages the Vanguard collective trusts.

The Vanguard Group has partnered with Financial Engines Advisors L.L.C. to provide subadvisory services to the Vanguard Managed Account Program and Personal Online Advisor. Financial Engines Advisors L.L.C. is an independent, federally registered investment advisor that does not sell investments or receive commission for the investments it recommends. Advice is provided by Vanguard Advisers, Inc. (VAI), a federally registered investment advisor and an affiliate of The Vanguard Group, Inc. (Vanguard). Eligibility restrictions may apply. Vanguard is owned by the Vanguard funds, which are distributed by Vanguard Marketing Corporation, a registered broker-dealer affiliated with VAI and Vanguard. Neither Vanguard, Financial Engines, nor their respective affiliates guarantee future results.

Financial Engines is a trademark of Financial Engines, Inc. All rights reserved. Used with permission.

Investing with a leader

From our beginning in 1975, Vanguard has been a very different kind of investment firm—one that’s been able to steadily improve its services and lower the cost of investing globally because of its unique ownership structure in the United States. We are now one of the world’s largest global investment management companies, serving individual and institutional investors, employer-sponsored retirement plans, and financial professionals.

Vanguard is based on a simple but revolutionary idea—that a mutual fund company should be managed in the sole interest of its investors. To ensure that the interests of investors always come first, Vanguard was structured in the United States as a "mutual" mutual fund company, owned by the Vanguard funds, which in turn are owned by the investors who put their hard-earned money in the funds.

More than four decades later, we’re still one of the only companies structured this way. Today, we state our mission broadly: “To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.”

We continue to be a leading global asset manager, committed to bringing exceptional value to investors through outstanding performance and loyalty-inspiring service at low costs. Because we are not subject to buyouts or mergers, our clients can expect stability: The company they entrust with their money today will be the same company serving them tomorrow. But what truly builds Vanguard clients’ confidence in investing with us is our reputation—earned over decades—for ethics, integrity, and interests aligned with theirs.

Our pledge

When you invest with Vanguard, we promise to:

• Align our interests with our clients' interests.
• Manage investments with prudence, a long-term perspective, and the goal of providing returns consistently better than those of competitors, while keeping costs low.
• Hold ourselves to the highest standards of ethical behavior and stewardship.
• Strive to provide consistently outstanding service.
• Communicate candidly about investment risks and costs as well as potential rewards.
• Maintain strong internal controls to protect the assets and confidential information that our clients entrust to us.
• Employ a talented, diligent, and diverse crew to ensure that we serve our clients well.
• Adapt, evolve, and continuously improve in pursuit of excellence in all that we do.

Whenever you invest, there’s a chance you could lose the money.