DownloaD to tax PreParation Software—SetUP GUiDe

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OverviewYou can offer your clients entitled to netxinvestor™ the ability to download tax data into popular tax preparation software—turbotax® and H&r Block at Home™. Your clients can import 1099-DiV, 1099-int, 1099-B, 1099-oiD, 1099-MiSC and 1099-r tax forms directly into the tax preparation software.

Benefits for Clients Benefits for financial organizations

› import directly into tax preparation software

› Minimize manual entries

› Help ensure accuracy

› Save time

› enrich your online offering

› Help increase your competitiveness

› augment your client retention abilities

› launch quickly and economically

Disclosures and Disclaimersfor tax purposes, your clients may need to make adjustments to their cost basis that a reporting financial firm is not required to report on irS form 1099-B. Clients are responsible for validating the information downloaded to tax preparation software with the official tax Documents produced for their accounts. the irS requires clients to maintain all such records for production upon request.

if a client acquired shares of a stock before January 1, 2011, the cost basis of those shares will generally not be reported on irS form 1099-B (they are considered “noncovered” by the irS).

this information is subject to change without prior notice, and it was not intended, nor written to be used, as a substitute for specific tax or legal advice. Pershing does not provide tax or legal advice. Clients should consult their own tax advisors.

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Product optionsChoose the solution that suits your firm’s needs from the following available options.

Option NetXInvestor Branding Custom Branding

Branding

Your firm’s custom branding p

Product p p

1099-B p p

1099-DiV p p

1099-int p p

1099-oiD p p

1099-r p p

1099-MiSC p p

login Credentials

Clients use financial organization number for login p

Clients use same user iD and password as on their investor website p p

Service availability for the Current tax Yearthe download service for the current tax year is targeted to be available from the middle of february through the end of December. the exact date for the availability of data for download is closely tied to the processing date for tax statements.

› if you choose to offer this service using your own custom branding, the cutoff date for submitting the setup form is november 1.

Pricing

fees netxinvestor Branding Custom Branding

initial setup fee for one or both tax preparation software packages

$0 $7,000

annual fee for one tax preparation software package $500 setup fee + $0.10 per account (see note below).

annual fee for both tax preparation software packages $1,000 setup fee + $0.10 per account (see note below).

note: Per account fees are based on your firm’s total number of accounts that generate tax statements (not based on active accounts or accounts set up for online access).

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next Steps › Contact your account Manager to indicate your interest.

› Select the options that best suit your firm’s needs. Print and fill out the corresponding setup form.

› Sign the form and send it to your account Manager.

after your signed setup form is received, your firm will be included for enrollment in the turbotax and/or H&r Block at Home download offering.

note: for firms that enrolled in the turbotax or H&r Block at Home program in prior years no further action is required if:

› Your firm does not want to update its setup by adding either turbo tax or H&r Block at Home software to its offering and

› Your firm wants to continue to offer download services to their clients. if you wish to cancel download services please send a note to your account manager.

frequently asked QuestionsGeneralDo we have to choose one tax preparation software package to offer to our clients—either TurboTax or H&R Block At Home?no. if desired, your firm can offer both tax preparation software packages.

How do clients get TurboTax and H&R Block At Home software?Clients can buy the tax preparation software from stores, online vendors, or directly from the turbotax or H&r Block website.

How do clients download 1099 data into the tax preparation software?as part of the process of preparing the client’s federal and state tax returns, the software prompts the client to download 1099 data. the client must select netxinvestor.

for firms offering a custom-branded solution, the client should select his or her financial organization name (custom brand) from the financial organization field. a page will appear, prompting the client to enter his or her financial organization number (for netxinvestor only), iD, and password. this is the same iD and password as his or her netxinvestor or custom site login information.

ImplementationWe do not have a NetXInvestor website. Can we offer OFX downloads for our clients?the ofx download to tax preparation software is available for firms that are on the netxinvestor platform only. firms that do not have a website on the netxinvestor platform have the option to implement single sign-on (SSo) for authentication. SSo implementations will be priced on a time and materials basis. for details, contact your account Manager.

How long will it take to launch the solution for my clients?the implementation will be completed by the end of January, provided that you sign up for the service by the cutoff date (see “Service availability for the Current tax Year” on page 3). Data will be available for clients to download in the middle of february.

Do we need to contact Intuit or H&R Block for the implementation?no. Pershing will handle all aspects of the implementation with the vendor.

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Single Sign-On (SSO)Do you support SSO for OFX downloads?Yes. SSo is available for firms that need to authenticate their users outside of Pershing. SSo is priced and implemented separately on a time and materials basis. the pricing and schedule for SSo implementation is independent of the schedule for tax preparation software implementation.

We have an SSO to a NetXInvestor website. Do we need a separate SSO for OFX?Yes. in case you need to authenticate your users away from Pershing, ofx will need an SSo separate from the SSo on the website.

We have a standard SSO for Quicken® with Pershing. Do we need a separate SSO for TurboTax or H&R Block At Home?no. a single SSo implementation is used for Quicken®, turbotax, and H&r Block at Home.

SupportWho will be responsible for supporting our clients?Your firm will be responsible for providing support for your clients on turbotax and H&r Block at Home. Pershing is responsible for the downloaded data. Clients have the option to work with the tax preparation software’s customer support for issues and questions related to the tax preparation software.

What versions of TurboTax and H&R Block At Home are supported?the most recent versions of turbotax and H&r Block at Home that support tax filing in the current year are supported.

Other ProductsDo you offer downloads to Quicken?Yes. we offer downloads to Quicken. Contact your account Manager for program details.

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Setup forms Page 1 of 2Custom Branding–Setup FormGeneral information

name of financial organization

Pershing introducing Broker-Dealer number

Screen title (see screenshot below) 50 characters or less.

Company logo (see screenshot below) attach your firm’s logo if Pershing does not already have it.

Paragraph 1 (see screenshot below)May contain up to seven lines. each line may contain up to 64 characters.

Paragraph 2 (see screenshot below)May contain up to seven lines. each line may contain up to 64 characters.

Hyperlink (see screenshot below)Hyperlink text appears at the end of paragraph two. the hyperlink text may contain up to 64 characters.

naming convention for your clients’ iDs (e.g., user iD, SSn, member iD, subscriber iD)

naming convention for your passwords (e.g., password, Pin, pass code)

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Custom Branding–Setup form Page 2 of 2Tax Preparation SoftwareSelect the desired tax preparation software. You can select one or both options.

turbotax H&r Block at Home

Test AccountsProvide the test account numbers that you want us to use in the production environment.

accounts: , ,

Responsibility for Supportafter the completion of the project, your firm will be responsible for the first level of support for your clients. for this purpose, your firm understands that it may have to install the selected tax preparation software package(s) for your support staff and have a basic level of familiarity with the products.

issues related to turbotax and questions on how to use it should be escalated to intuit, as prescribed on its support website. issues related to H&r Block at Home and questions on how to use it should be escalated to H&r Block, as prescribed on its support website.

Pershing will be responsible for the authentication and download of data into the selected tax preparation software. in the event that your firm wishes to escalate any issue related to the download or authentication, you should contact netexchange Support, in accordance with the regular escalation procedure, with the following information: Description of the issue, date and time when the user had the issue, user iD, account number(s), version of product and a screenshot(s) of the issue.

You will be enrolled for the current tax year and all subsequent tax years. to de-enroll for subsequent tax years send a note to your account manager.

Signature:

name:

Date:

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netxinvestor Branding–Setup formSetup FormGeneral information

Name of Financial Organization

Pershing Introducing Broker-Dealer Number

Tax Preparation SoftwareSelect the desired tax preparation software. You can select one or both options.

turbotax H&r Block at Home

Responsibility for Supportafter the completion of the project, your firm will be responsible for the first level of support for your clients. for this purpose, your firm understands that it may have to install the selected tax preparation software package(s) for your support staff and have a basic level of familiarity with the products.

issues related to turbotax and questions on how to use it should be escalated to intuit, as prescribed on its support website. issues related to H&r Block at Home and questions on how to use it should be escalated to H&r Block, as prescribed on its support website.

Pershing will be responsible for the authentication and download of data into the selected tax preparation software. in the event that your firm wishes to escalate any issue related to the download or authentication, you should contact netexchange Support, in accordance with the regular escalation procedure, with the following information: Description of the issue, date and time when the user had the issue, user iD, account number(s), version of product and a screenshot(s) of the issue.

You will be enrolled for the current tax year and all subsequent tax years. to de-enroll for subsequent tax years send a note to your account manager.

Signature:

name:

Date:

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amendment to Schedule a of the fully Disclosed Clearing agreementBetween Pershing LLC and Dated

NetXInvestor Branded—Instant Data Entry (IDE) for Tax Return Filings › intuit turbotax® Server Set-Up fee: netxinvestor Branding $500.00 per year

› H&r Block at Home™ Server Set-up fee: netxinvestor Branding $500.00 per year

› Custom Branding for intuit or H&r Block: one time Set-up fee for first-time Participants $7,000.00

› account loading fee $0.10 per account, per year

this offering enables broker-dealer’s clients to import tax data (1099 DiV, 1099 int, 1099 oiD, 1099 MiSC, and 1099-B, including average cost information) directly into their current year turbotax federal tax return. netxinvestor sites will access the netxinvestor branded presence on turbo tax or H&r Block at Home. account loading fees are based on the total number of accounts that will generate a tax statement (as of the last day of the calendar year); it is not based on active usage. additional fees may apply for special logon or other requirements.

nothing in this amendment shall be deemed to affect the validity of those portions of the fully Disclosed Clearing agreement and fully Disclosed Pricing agreement not specifically amended herein. those unaffected portions shall remain in full force and effect and be binding upon both parties.

Pershing llC

Signature Signature

Date Date

About us

Pershing LLC (member FINRA, NYSE, SIPC) is a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organizations and independent registered investment advisors who collectively represent approximately 5.5 million active investors. Financial organizations, investment professionals and independent registered investment advisors depend on Pershing’s depth of experience and consultative approach to provide them with forward-thinking solutions that help them grow their businesses. Located in 23 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Börse, the Irish Stock Exchange, the London Stock Exchange and the Australian Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at pershing.com.

©2015 Pershing LLC. Pershing LLC, member FINRA, NYSE, SIPC, is a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Trademark(s) belong to their respective owners. For professional use only. Not for distribution to the public.

One Pershing Plaza, Jersey City, NJ 07399PSREF-PER-NXI-TSG-10-15

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