t. rowe price brokerage services Great reasons to invest your IRA with T. Rowe Price Brokerage.

Transcription

1 t. rowe price brokerage services Great reasons to invest your IRA with.

2 Reliable trades, competitive commissions, one convenient account, and responsive service for all your assets. * can give retirement investors a lot of good reasons to trade with us. We offer competitive rates for online traders starting as low as $ And while you re saving on commissions, you can also take advantage of reliable customer service from a trusted company with more than 25 years of brokerage experience. If you value objective research, our website can give you the latest information plus real-time quotes. You can access company reports, view analyst research, and even have investment alerts delivered to you through or your mobile device. Our Brokerage services give you the opportunity to diversify your retirement portfolio with thousands of mutual fund choices including hundreds of no-load funds available through our Mutual Fund Gateway SM (many with no transaction fee). We make it easy to buy or sell funds without filling out forms or cashing redemption checks. Look through this brochure for more information on all the benefits offered by a IRA. Then open your account and begin enjoying world-class service at a very affordable price. * Brokerage services are offered through T. Rowe Price Investment Services, Inc., member FINRA/SIPC. 1 $9.95 per trade for online stock trades. Customers who do not qualify are eligible for our rate of $19.95 per trade for online stock trades. Online options trades are $9.95 plus $1.00 per contract. Customers who do not qualify are eligible for the rate of $19.95 for online option trades plus $1.00 per contract.

3 Table of Contents choices 2 Want more choices and flexibility from your Brokerage IRA? We make it easy to trade stocks, bonds, exchange-traded funds (ETFs), options, certificates of deposit (CDs), precious metals and more and provide the up-to-date investment information you need through our website. value 4 All smart investors look for good value. That s why we offer competitive prices and helpful representatives who make sure you always have the support you need. simplicity 5 With all the demands on your time, investing should be simple. We make it easy for you to move your money between investments with no unnecessary delays. If you want everything in one convenient account, we can help you consolidate your retirement assets and show you how to build a diversified portfolio. service 6 It s nice to have a reliable company working with you when you trade. You can take advantage of our powerful research and investment tools, plus the world-class service we re known for. commission and fee schedule 7 See how helps you save money with our low commissions and fees. ira investors 11 Get more investment options with a T. Rowe Price IRA. You can invest in stocks, bonds, mutual funds, and more. getting started 18 It s easy to get good value with every trade, objective research, and access to a wide range of mutual funds all in one place. Just open your T. Rowe Price Brokerage IRA online, by phone, or through the mail.

4 1 reason one: choices A dependable way to trade stocks, bonds, mutual funds, ETFs, options, CDs, precious metals, and more. Enjoy the freedom to trade any way you like. We make it easy to use the trading method that best suits your needs. Whether you prefer using our website, our automated phone system (Tele-Trader) or working with our experienced representatives, you can buy or sell securities with ease. We give you the power to choose what works best for you. Freedom lover. Wants to have it all T. Rowe Price funds, other funds, stocks, bonds, ETFs, options, CDs, precious metals, and more. A T. Rowe Price Brokerage IRA gives him the freedom to choose and the assurance of knowing he s working with a reliable company. My financial freedom starts with my Brokerage IRA. Work with an informative, trustworthy website. We know that most investors depend on current, reliable information when they invest. So we ve developed an accessible website that focuses on providing information that helps you make intelligent, informed decisions. Our easy-to-use navigation lets you set up price alerts and retrieve market data, then move to a single page that includes everything you need to trade. You can click on a Quick Link to review all of your account information, including current positions, available cash, and any open orders. Gain a strong investing voice with Tele-Trader. You can use our automated Tele-Trader system to make trades over the phone. It s easy with our voice recognition feature simply speak your commands and the system will promptly take you to your desired destination within the system. Get quick, reliable executions. Are you ready to trade with an experienced company that offers you more investment options and customer support? With your T. Rowe Price Brokerage IRA, you can buy and sell stocks, bonds, mutual funds, ETFs, options, CDs, precious metals, and more with the assurance that our highly qualified client representatives are always ready to help. Find thousands of fund choices in one convenient location. It s easy to get more mutual fund choices with. You can buy and sell: n Thousands of load funds available through our representatives. n Hundreds of no-load funds available online, many with no transaction fees. You can also use our Mutual Fund Gateway SM to easily search for no-load funds that meet your investment objectives. 2

5 Get a Brokerage IRA that offers more investment choices. Your IRA will give you attractive investment choices. And you can get started with a low initial investment of just $1,000. See the chart below for a full list of benefits. Brokerage IRA Description: Summary: Minimum Initial Investment: Primary Features: Individual Security Trading Mutual Fund Gateway SM Access to Research and Information Consolidated Statement Options Trading Available Commission Rates for Stocks: Web Representative Assisted Touch-Tone Telephone Minimum Investments for Non-T. Rowe Price Funds: Initial Subsequent Systematic Annual Account Fees: Standard investment retirement account Designed for clients investing in individual securities and mutual funds $1,000 Yes Yes Yes Yes Yes 1 $9.95 per trade for accounts with more than 30 executed trades in the prior 12 months or for customers who qualify for T. Rowe Price Preferred, Personal, or Enhanced Personal Services 2 $19.95 per trade for all other accounts See commission schedule $35 per trade for up to 1,000 shares plus $.02 for each share thereafter $1,000 3 $500 3 $100 3 $30 fee is waived for: T. Rowe Price customers who qualify for Preferred, Personal, or Enhanced Personal Services 2 OR Brokerage accounts in which five or more commission-generating trades are executed over the previous 12-month period OR Brokerage customers who hold $50,000 or more in T. Rowe Price mutual funds 1 Limited availability and subject to approval by T. Rowe Price Investment Services, Inc. 2 Customers with $100,000 or more qualify for Preferred Services, customers with $250,000 or more qualify for Personal Services, and customers with $1,000,000 or more qualify for Enhanced Personal Services. Qualifying investments consist of T. Rowe Price mutual fund, Brokerage account, variable annuity, and T. Rowe Price College Savings Plan accounts that are directly owned, trust accounts for which you are a trustee, and UTMA/UGMA, T. Rowe Price College Savings Plan, and Education Savings Accounts for which you are a custodian. Assets held in a 401(k) plan, Maryland College Investment Plan, or University of Alaska College Savings Plan also are eligible if you have a qualifying investment. Assets held in estate or corporate accounts are excluded. Your qualifying investment assets may be recognized with those of other eligible members of your household toward collective qualification for Select Client Services programs. 3 Some fund families may have higher limits. 3

6 reason two: value 2 Get world-class service at a more competitive price. Trade online for as little as $9.95. We know you look for the best possible value when you trade. So we let you save with prices as low as $9.95 for online stock trades and $9.95 plus $1.00 per contract for online options trades. 1 We work hard to keep your trust and help keep your trading costs low. Smart shopper. Never buys an overpriced item. Doesn t get fooled by the cheapest, either. Recognizes a good value at a competitive price. Choosing T. Rowe Price Brokerage for her IRA was a no-brainer. Getting a good price matters, whether I m buying a stock or choosing a broker. You can get our $9.95 rate if you have made more than 30 executed trades during the previous 12 months or qualify for either Preferred, Personal, or Enhanced Personal Services with T. Rowe Price. 2 Please note: If you do not qualify for the $9.95 rate, you can still trade online for $19.95 and save compared with full-commission broker rates. Quality service and value for smart investors. Although you make your own investment decisions, you may still want the assurance of having knowledgeable professionals available to support you. Our experienced client representatives are ready to help if you have any questions or need assistance, so you never have to feel like you re on your own. Our mix of low prices and personalized customer service ensures that you get more for your money every time you trade. Note: Our full commission and fee schedule is shown on pages 7 through Customers who do not qualify are eligible for our rate of $19.95 per trade for online stock trades and $19.95 for online option trades plus $1.00 per contract. 4 2 Customers with $100,000 or more qualify for Preferred Services, customers with $250,000 or more qualify for Personal Services, and customers with $1,000,000 or more qualify for Enhanced Personal Services. Qualifying investments consist of T. Rowe Price mutual fund, Brokerage account, variable annuity, and T. Rowe Price College Savings Plan accounts that are directly owned, trust accounts for which you are a trustee, and UTMA/UGMA, T. Rowe Price College Savings Plan, and Education Savings Accounts for which you are a custodian. Assets held in a 401(k) plan, Maryland College Investment Plan, or University of Alaska College Savings Plan also are eligible if you have a qualifying investment. Assets held in estate or corporate accounts are excluded. Your qualifying investment assets may be recognized with those of other eligible members of your household toward collective qualification for Select Client Services programs.

7 reason three: simplicity 3 Everything you need to make investing simpler. The simplifier. Adding a Brokerage IRA lets her consolidate her accounts and easily move money among T. Rowe Price funds, other funds, stocks, and more. The less paperwork I have, the better. Stay nimble move money quickly between your funds and Brokerage account. You have to be able to act quickly in today s fast-paced markets. We make it easy for you to move money between your mutual funds and T. Rowe Price Brokerage IRA via the Web or over the phone. You can save time and be sure your money is invested exactly where you want it, without delay. See how you can simplify your investing life by consolidating your retirement accounts with. Keep it simple by consolidating with one trusted company. If you have assets with a broker or another fund family, you can save time and paperwork by transferring them to your new IRA account. You ll get one clear, concise statement that covers your retirement investments. Consolidating all your assets in one place makes it easy to see exactly what s in your portfolio. Keep your money working with a sweep account. You can open a sweep account, which may allow your money to earn interest for you when it s not invested in securities or mutual funds. Simply designate a T. Rowe Price money market fund, and we ll link it to your Brokerage IRA.* Then any money from securities or mutual fund transactions and dividend payments will be transferred to your sweep account to earn competitive rates. If you want to make a Brokerage purchase, the money in your sweep account can be used whenever you like. Opening an account is easy. We make it easy to take advantage of low prices and great customer service. You can open your IRA four different ways: online, by phone, by mail, or in person at one of our Investor Centers. * An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them. 5

8 reason four: service 4 Committed to helping our investors succeed. Sound sleeper. Depend on a company with a strong reputation for client service. Our commitment to clients is based on the guiding principles established by Thomas Rowe Price, Jr., who believed that our point of view should be entirely the investor s. T. Rowe Price has earned a reputation for putting our clients interests first. reflects that same philosophy and has more than 25 years of experience working with investors. Likes the idea of doing business with a company that has always had a good reputation. Has confidence that trades will be executed quickly and accurately. And likes having access to experienced financial representatives. Great value from a company I can trust. Online research and news. Our website offers you the latest independent investment analysis and news.* You also can do your own analysis using in-depth company financial data plus powerful online tools that help you research both stocks and mutual funds. n Stock screener: Conduct searches based on industry, performance, size, growth, value, and earnings forecasts. n Company news and reports: Search by company name or ticker symbol for the latest news concerning your stocks and other investments. n Interactive charting: Compare a security s current performance with various indices, its prior-year performance, the industry average, or other securities. n Analyst research: Compile analyst ratings and earnings estimates for investments that interest you. Keep up with market moves. helps you stay on top of quickly moving markets. n Investment alerts: Use our alerts wizard to set up alerts focusing on news, trades, prices, volume, watch list, positions, and other important data for delivery online, by , or to your mobile device. n Real-time quotes:** Brokerage customers have access to unlimited real-time quotes, and we offer streaming quotes to all customers who have executed 40 or more trades in the previous 12 months or hold at least $250,000 in their Brokerage account (including sweep account). Work with helpful representatives. Our licensed client representatives earn a salary instead of commission, so they can provide just the information you want, when you want it. They will be ready to answer your questions and make sure everything runs as smoothly as possible. You can make your own investment decisions and still have the assurance of working with experienced professionals. T. Rowe Price also offers low commission rates and exceptional service for non-ira Brokerage accounts. For more information: Call Open your account online at. * The information provided through this service is prepared by independent research companies that are not affiliated with T. Rowe Price. While the information provided is deemed reliable, T. Rowe Price, T. Rowe Price Brokerage, and the information providers do not guarantee the accuracy or completeness of the information or make any warranties with regard to the results obtained from its use. ** Some restrictions apply. 6

9 Effective July 1, 2014 >> commission and fee schedule Stocks and ETFs 1 online $9.95 per trade for accounts with more than 30 executed trades in the prior 12 months or customers who qualify for the T. Rowe Price Select Client Services program 2 $19.95 per trade for all other accounts tele-trader $35 per trade for up to 1,000 shares plus $.02 for each share thereafter representative-assisted Principal Value (PV) Commission Charge (PV x % + $) more than $1 per share $ 0 $ 2, $30 Minimum of $40 per transaction or $ 2,501 $ 6, $57 $.08/share on the first 1,000 shares, $.04/share thereafter; whichever is greater. $ 6,001 $ 22, $73 Maximum of $.50/share on orders for 100 $ 22,001 $ 50, $100 shares or more and $50 per transaction on orders for 99 shares or fewer. $ 50,001 $ 500, $175 $ 500,001 and over $275 less than $1 per share $ 0 $ 10, $35 (penny stocks) $ 10,001 and over.03 + $35 Options online $9.95 plus $1 per contract for accounts with more than 30 executed trades in the prior 12 months or customers who qualify for the T. Rowe Price Select Client Services program 2 tele-trader representative-assisted $19.95 plus $1 per contract for all other accounts 10% off regular representative-assisted rates (subject to a minimum commission of $35) $34.95 plus $1 per contract Orders partially executed across multiple trading days are subject to a separate commission charge for each day the order partially executes. 1 The commission charged for any stock trade will not exceed 3% of the principal value of the trade, subject to the applicable minimums listed above. Security markets have their own set of additional fees and/or taxes assessed by local governments and exchanges. These assessments are imposed on the financial services industry to cover the regulatory costs; and in all cases, the fees/taxes collected are passed on to the appropriate regulatory body or government agency. In addition, Agent Servicing fees may be imposed for American Depository Receipts (ADRs). 2 Customers with $100,000 or more qualify for Preferred Services, customers with $250,000 or more qualify for Personal Services, and customers with $1,000,000 or more qualify for Enhanced Personal Services. Qualifying investments consist of T. Rowe Price mutual fund, Brokerage account, variable annuity, and T. Rowe Price College Savings Plan accounts that are directly owned, trust accounts for which you are a trustee, and UTMA/UGMA, T. Rowe Price College Savings Plan, and Education Savings Accounts for which you are a custodian. Assets held in a 401(k) Plan, Maryland College Investment Plan, or University of Alaska College Savings Plan also are eligible if you have a qualifying investment. Assets held in estate or corporate accounts are excluded. Your qualifying investment assets may be recognized with those of other eligible members of your household toward collective qualification for Select Client Services programs. 7

10 Mutual Funds and UITs no-transaction-fee (ntf) funds 1 No charge 2 transaction-fee funds 1 $35 load funds and uits Stated load only 3 Bonds and CDs product commission 4 Commercial Paper $50 Treasury Auctions $50 Treasury Bills $50 Agency (FNMA, FHLMC), TIPS, Treasury and Coupon Notes and Bonds, Treasury 0% Coupon Bonds $1 per $1,000 Bond GNMAs and CMOs (Minimum of $25,000) Corporate Bonds Municipals (Minimum of $5,000) Certificate of Deposit (Minimum varies by issue) product $1 per $1,000 Bond $5 per $1,000 Bond $5 per $1,000 Bond sales charge per $1,000 bond CDs purchased at par ($1,000) Precious Metals Gold, Silver, Palladium and Platinum product quantity commission 5 Principal Value (PV) Commission Charge (PV x %) $ 0 $9, $ 10,000 $49, $ 50,000 $99, $ 100,000 and over.0075 Commissions for Precious Metal, Bonds and CDs are for Rep-Assisted Trading and can be traded by calling If fund minimums are not met, certain fees may apply. If you hold no-transaction-fee fund positions along with transaction-fee fund positions, the no-transaction-fee fund positions will liquidate first. 2 T. Rowe Price Investment Services, Inc., may receive administrative fees of up to.40% from these no-transaction-fee funds for providing recordkeeping and shareholder services. T. Rowe Price reserves the right to change the funds available with no transaction fees and reinstate the fees on any funds as well as the right to charge a transaction fee if your short-term trading becomes excessive. See the Miscellaneous Fees section for more information about the short-term trading fee. If you purchased a fund and paid a transaction fee, one will be charged upon its sale even if it becomes a no-transaction-fee fund after your purchase. 3 Certain Fidelity Funds are also charged a $35 transaction fee. 4 $35 minimum/$250 maximum. 5 Subject to a minimum commission of $35. 8

11 Fees for Services annual account maintenance fee $30 Fee The $30 fee is waived for: cash management service fee T. Rowe Price customers who qualify for Preferred, Personal, or Enhanced Personal Services 1 Brokerage accounts in which five or more commission-generating trades are executed over the previous 12-month period (Generally, September 1 through August 31 of each year) Brokerage customers who hold $50,000 or more in T. Rowe Price mutual funds Brokerage Advantage customers subject to the $40 cash management service fee (see below) $40 Fee The $40 fee will be charged: miscellaneous fees For Brokerage Advantage accounts approved or activated for debit card or checkwriting services In the anniversary month of account opening Account Transfer Out or Termination $50 Precious Metals Storage Fee.75% of market value per annum, billed in arrears Minimum of $5 per quarter Returned Deposit Checks $20 Annual Custody Fee for Special Products (Limited Partnerships and Direct Participation Programs) $35 per position Wire Transfer Out of Brokerage Account $15 Foreign Securities Transfers Up to $75 for each foreign security transferred to or from From Your Linked Money Market Account: $5,000 or more Less than $5,000 No fee $5 per wire Foreign Securities Orders Up to $75 for each purchase or sale in addition to the commission Certificates and Direct Registration Services (Register and Ship) Short-Term Trading Fee $15 (Only available on a limited number of securities) charges a short-term trading fee equal to the greater of $50 or 1%, not to exceed $250, for no-load, no-transaction-fee (NTF) fund shares held for less than six months. A short-term trading fee of $5 applies to those shares purchased systematically and held for less than six months. These fees are in addition to any redemption fee that a particular fund may charge. Short-term trading fees do not apply to T. Rowe Price funds; however, investors violating the T. Rowe Price fund excessive trading policy may be restricted from future purchases, as disclosed in the fund s prospectus. 1 Customers with $100,000 or more qualify for Preferred Services, customers with $250,000 or more qualify for Personal Services, and customers with $1,000,000 or more qualify for Enhanced Personal Services. Qualifying investments consist of T. Rowe Price mutual fund, Brokerage account, variable annuity, and T. Rowe Price College Savings Plan accounts that are directly owned, trust accounts for which you are a trustee, and UTMA/UGMA, T. Rowe Price College Savings Plan, and Education Savings Accounts for which you are a custodian. Assets held in a 401(k) Plan, Maryland College Investment Plan, or University of Alaska College Savings Plan accounts also are eligible if you have a qualifying investment. Assets held in estate or corporate accounts are excluded. Your qualifying investment assets may be recognized with those of other eligible members of your household toward collective qualification for Select Client Services programs. 9

12 Margin Schedule These services are available only to Brokerage and Brokerage Advantage account clients Debit Balances Percentage Above Pershing s Base Lending Rate $ 0 $ 9, % above the Pershing base lending rate $ 10,000 $ 29, % above the Pershing base lending rate $ 30,000 $ 49,999.75% above the Pershing base lending rate $ 50,000 and over.25% above the Pershing base lending rate Fees for Brokerage Advantage Account Clients checking visa gold atm debit/check card Check Amount Minimum None Check Reorder Fee No charge for first 40 checks; $10 per 150 checks thereafter ATM Withdrawal Fee 1 None Copies of ATM, Sales, or Cash Advance Receipts $2.50 Daily Maximum ATM Withdrawal The lesser of $500 or your available balance 2 Stop Payments $10 Returned Checks $15 Check Copies $2.50 Daily Maximum for VISA Gold Card Transactions The lesser of $10,000 or your available balance Third-party ATM surcharges may apply to transactions performed at certain ATMs. 2 Available balance includes a secured credit line backed by the value of the securities held in the margin account (provided account is approved for margin privileges). VISA is a registered trademark of VISA U.S.A., Inc. is a division of T. Rowe Price Investment Services, Inc., member FINRA/SIPC. Brokerage accounts are carried by Pershing LLC (Pershing), member NYSE/FINRA/SIPC, a BNY Mellon company. T. Rowe Price mutual funds not held as positions in your Brokerage account are serviced by T. Rowe Price Services, Inc., and are not carried by Pershing.

13 IRA Investors Increase your savings potential with a IRA. Your IRA can be one of the most effective ways to save for your future. For 2014, you can contribute up to $5,500 to your IRA if you are under age 50, and $6,500 to your IRA if you are age 50 or older in that year. Please note: The deadline to contribute for a particular tax year is generally April 15 of the following year. We give you the flexibility to invest in stocks, options, bonds, and mutual funds, and we can help you save even more by holding down your commission costs. You ll also get the fast, responsive service you want for your retirement money. Best of all, any earnings on your IRA contributions are tax-deferred until they re withdrawn (withdrawals from Roth IRAs are tax-free if certain conditions are met). 11

14 Get customized IRA information from our website. Our T. Rowe Price website lets you take a personalized approach to IRA investing. You can use interactive worksheets to get customized information and projections on your IRA, so you ll have a better idea of how much you need to save to reach your goals. There s also a complete update on the new contribution limits and deduction guidelines. Choose the right IRA for your financial goals. You can invest in different types of IRAs, including the Roth IRA and Traditional IRA. Both give you the benefit of tax-advantaged savings potential for your money. While there are some differences in how you contribute to them, the differences are most pronounced when you make withdrawals. Your Traditional IRA contribution may be tax-deductible. Your contribution to a Traditional IRA may be tax-deductible, depending on your participation in an employer-sponsored plan and your income level. Withdrawals from your Traditional IRA will generally be taxed as ordinary income, and there are usually penalties for any withdrawals you make before age 59½. The Roth IRA allows tax-free withdrawals. You can withdraw earnings from your Roth IRA tax-free if you ve had the account for at least five years and are at least age 59½, are disabled, or use the money for a qualifying home purchase. Contributions to a Roth IRA are never taxed when they re withdrawn. Unlike contributions to a Traditional IRA, Roth IRA contributions are never tax-deductible. Convert a Traditional IRA to a Roth IRA. You can convert a Traditional IRA to a Roth IRA regardless of income. Generally, any Traditional IRA assets converted to a Roth IRA must be reported as taxable income for the year the conversion occurred. You should consult a tax advisor for details on how a Roth IRA conversion might impact your personal tax and financial planning goals. See the charts on pages to find out if you can contribute to a Roth IRA or make tax-deductible contributions to a Traditional IRA. Call to request a prospectus or summary prospectus; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. 12

15 Contribution guidelines for Roth and Traditional IRAs. The chart below answers the most common questions investors have about contributing to Roth or Traditional IRAs. Check to see if you re eligible to contribute and whether your contributions will be tax-deductible. If you have any questions, call or go online to. Making contributions Am I eligible to contribute? See the charts on pages to find out if you can contribute to a Roth IRA or can make taxdeductible contributions to a Traditional IRA. How much can I contribute? (Total contributions to Traditional and Roth IRAs together cannot exceed the annual limit of $5,500, $6,500 if you are age 50 and older.) For how long may I contribute? Are my contributions ever tax-deductible? Are any earnings tax-deferred? Roth IRA You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income. You must also fall below the following income limits to make the maximum annual contribution: For 2014: For single taxpayers $129,000 modified adjusted gross income For married/filing jointly $191,000 modified adjusted gross income For married/filing separately $10,000 modified adjusted gross income See page 16 for the exact contribution you can make at your adjusted gross income level. Individuals can contribute up to the lesser of their income or $5,500 per year ($6,500 for individuals age 50 and older). These dollar limits include combined contributions to both a Traditional IRA and a Roth IRA. You may contribute for as long as you wish, provided you have earned income and don t exceed the income eligibility limits. No. Yes. Traditional IRA You can contribute to a Traditional IRA if you have earned income and won t reach age 70½ by the end of the year. You also can contribute to a Traditional IRA for your spouse if you are married and file a joint tax return. See page 15 for guidelines about the deductibility of your contribution. Individuals can contribute up to the lesser of their income or $5,500 per year ($6,500 for individuals age 50 and older). These dollar limits include combined contributions to both a Traditional IRA and a Roth IRA. You may contribute for as long as you have earned income up until the year you turn age 70½ at which point you must start withdrawing from the account. Your Traditional IRA contributions are fully deductible if neither you nor your spouse participates in an employer-sponsored retirement plan. If either of you participates in such a plan, your deduction will depend on your adjusted gross income. Check page 15 to see what your allowable tax deduction would be. Yes. 13

16 Which IRA works best for you? It s important to select the right IRA for your personal investment goals. Both the Roth and Traditional IRAs offer particular tax advantages that can benefit you depending on your circumstances. See the chart below for details. For which IRAs are you eligible? Do you think you will need to access your IRA account within five years? Do you expect your tax rate at withdrawal to be lower than it is today? How long can you keep your money invested? Rule of Thumb If your contribution to a Traditional IRA will be nondeductible and your income is below the Roth IRA income limits, the Roth IRA may be the better choice. If you are eligible to make a deductible contribution to a Traditional IRA, compare the differences between the Roth IRA and Traditional IRA carefully. If you will not need access to your IRA within five years, the Roth IRA may offer more favorable tax treatment. If you expect your tax rate to significantly decline in the future, a Traditional IRA may benefit you more than a Roth IRA. If you are using your IRA as an estate planning tool, the distribution rules and tax treatment of the Roth IRA may be more favorable to you. Specifics See pages 13, 15, and 16 to determine your eligibility for a Roth IRA or deductibility of Traditional IRA contributions. Roth IRA: At any time, you may withdraw contributions tax-free. Plus, contributions are always withdrawn first, so you may not incur taxes and penalties on withdrawal. However, earnings will still be subject to a 10% federal income tax penalty unless you have had a Roth IRA for at least five years and you are age 59½ or older. Traditional IRA: No matter how long the account is open, withdrawals may also be taxed. If you withdraw from your account before age 59½, you may face a federal 10% premature withdrawal penalty. Roth IRA: Your tax rate at retirement does not affect withdrawals from a Roth IRA. It offers taxfree withdrawals if certain conditions are met. Traditional IRA: If you expect your tax rate at withdrawal to be lower than it is today, then making deductible contributions to a Traditional IRA now may be more beneficial for you, especially if you invest any tax savings. Roth IRA: In both types of IRAs, the longer you keep your money invested, the more time it has to grow tax-deferred. You can keep your money invested in a Roth IRA throughout your lifetime. Traditional IRA: Withdrawals must start for the year in which you turn age 70½. Earnings and deductible contributions are taxed at your ordinary income rate at withdrawal. 14

17 Traditional IRA You re eligible for a fully deductible Traditional IRA contribution if neither you nor your spouse is considered an active participant in an employer-sponsored retirement plan. If either of you do participate in such a plan, your ability to deduct your full IRA contribution may be limited by your income. Check the chart below to see if any part of your Traditional IRA contribution will be deductible at your income level. Tax deductibility of Traditional IRA contributions for 2014 tax year Adjusted Gross Income, Investor Under Age 50 Single Married Filing Jointly/You Are in Workplace Plan Married Filing Jointly/Spouse Is in Workplace Plan Married/Filing Separately Deductible Amount $60,000 $96,000 $181,000 $0 $5,500 $61,000 $98,000 $182,000 $1,000 $4,950 $62,000 $100,000 $183,000 $2,000 $4,400 $63,000 $102,000 $184,000 $3,000 $3,850 $64,000 $104,000 $185,000 $4,000 $3,300 $65,000 $106,000 $186,000 $5,000 $2,750 $66,000 $108,000 $187,000 $6,000 $2,200 $67,000 $110,000 $188,000 $7,000 $1,650 $68,000 $112,000 $189,000 $8,000 $1,100 $69,000 $114,000 $190,000 $9,000 $550 $70,000 $116,000 $191,000 $10,000 $0 Adjusted Gross Income, Investor Age 50 and Older Single $60,000 $61,000 $62,000 $63,000 $64,000 $65,000 $66,000 $67,000 $68,000 $69,000 $70,000 Married/ Filing Jointly $96,000 $98,000 $100,000 $102,000 $104,000 $106,000 $108,000 $110,000 $112,000 $114,000 $116,000 Married Filing Jointly/Spouse Is in Workplace Plan $181,000 $182,000 $183,000 $184,000 $185,000 $186,000 $187,000 $188,000 $189,000 $190,000 $191,000 Married/Filing Separately $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Deductible Amount $6,500 $5,850 $5,200 $4,550 $3,900 $3,250 $2,600 $1,950 $1,300 $650 $0 15

18 Roth IRA You may be able to contribute to a Roth IRA for yourself or your spouse if you have earned income. You must fall below the Roth IRA income limits listed on page 13. See the table below for the exact Roth IRA contributions you can make at your adjusted gross income level. Maximum contributions for qualified Roth IRA for 2014 tax year Single Investor Under Age 50 Married/Filing Jointly Investor Under Age 50 Modified Adjusted Gross Income $114,000 Contribution Limit $5,500 Modified Adjusted Gross Income $181,000 Contribution Limit $5,500 $115,000 $116,000 $117,000 $118,000 $119,000 $120,000 $121,000 $122,000 $123,000 $124,000 $125,000 $5,133 $4,766 $4,400 $4,033 $3,666 $3,300 $2,933 $2,566 $2,200 $1,833 $1,466 $182,000 $183,000 $184,000 $185,000 $186,000 $187,000 $188,000 $189,000 $190,000 $191,000 $4,950 $4,400 $3,850 $3,300 $2,750 $2,200 $1,650 $1,100 $550 $0 $126,000 $1,100 $127,000 $733 $128,000 $366 $129,000 $0 Single Investor Age 50 and Older Married/Filing Jointly Investor Age 50 and Older Modified Adjusted Gross Income $114,000 Contribution Limit $6,500 Modified Adjusted Gross Income $181,000 Contribution Limit $6,500 $115,000 $116,000 $117,000 $118,000 $119,000 $120,000 $121,000 $122,000 $123,000 $124,000 $125,000 $6,066 $5,633 $5,200 $4,766 $4,333 $3,900 $3,466 $3,033 $2,600 $2,166 $1,733 $182,000 $183,000 $184,000 $185,000 $186,000 $187,000 $188,000 $189,000 $190,000 $191,000 $5,850 $5,200 $4,550 $3,900 $3,250 $2,600 $1,950 $1,300 $650 $0 $126,000 $1,300 $127,000 $866 $128,000 $433 $129,000 $0 16

19 Figuring your modified adjusted gross income. To determine your IRA eligibility, you need to know your modified adjusted gross income (MAGI) for the year in question. Traditional MAGI Your Traditional MAGI is used to determine whether your contribution to a Traditional IRA is tax-deductible. Starting with your adjusted gross income for the year in question, add the following amounts: 1. Your total Traditional IRA deduction for the year, 2. Any Series EE bond (or other qualified U.S. savings bond) interest on IRS Form 8815 you exclude from your income, 3. Any foreign-earned income exclusions, 4. Any foreign housing exclusions or deductions, 5. Any student loan interest deductions, and 6. Any employer-paid adoption expenses on IRS Form 8839 that you excluded from income. Roth MAGI (Income from Traditional IRA balances converted to a Roth IRA will be part of your adjusted gross income, or AGI.) Your Roth MAGI is used to determine whether you are eligible to make a contribution to a Roth IRA or convert any Traditional IRA balances to a Roth IRA. For Roth IRA contributions, Roth MAGI is the same as Traditional MAGI except you subtract any income generated from a conversion of a Traditional IRA to a Roth IRA. 17

20 Getting Started Open your Brokerage IRA for all the right reasons. How to open your IRA. Open your IRA and get better value when you buy or sell securities. We make it easy for you to save on commissions while you trade with a reliable, trusted company. Our complete line of Brokerage services gives you the best value for your money with: n Commissions as low as $9.95 for online stock trades. n Real-time access to research and account information through our website. n Convenient access to thousands of funds from other fund families. n Experienced, highly qualified representatives to answer questions and help you execute trades. n Consolidated view a convenient feature that brings all the information you need to trade, together on a single page. There are four easy ways you can open your IRA. To get started, you can: n Open your account online at. n Call to open an account by phone. n Mail your completed New Account Application along with a check (if applicable) in the enclosed postage-paid envelope. n Visit one of our conveniently located Investor Centers. If you have any questions, please call To open your account online, go to

21

22

23

24 If you prefer to meet with us in person, stop in at one of our Investor Centers. A T. Rowe Price Client Manager will be available to offer investment guidance and give your Brokerage IRA the personal attention it deserves. See the list below for the Investor Center nearest you. Colorado Colorado Springs 2220 Briargate Parkway Colorado Springs, CO Toll-free District of Columbia Washington, D.C K Street, N.W. Suite A-100 Washington, DC Toll-free Florida Tampa 4211 West Boy Scout Boulevard 8th Floor Tampa, FL Toll-free Maryland Baltimore 105 East Lombard Street Baltimore, MD Toll-free Owings Mills Three Financial Center 4515 Painters Mill Road Owings Mills, MD Toll-free Virginia Tysons Corner 1600 Tysons Boulevard Suite 150 McLean, VA Toll-free US K /14