Preheat the oven to 350 F. In a large bowl, combine butter with powdered sugar until fluffy. Add in vanilla extract and mix until smooth. Add in flour and mix until it is fully combined. Fold in the sprinkles.
Roll the cookie dough into balls, and place them onto a large ungreased baking sheet. Bake for 10-12 minutes. Place the remaining powdered sugar into a shallow dish.
Roll each baked cookie into the powdered sugar.