800-638-5660

Call an Investment Guidance Specialist

In most states, mutual fund dividends from interest on direct U.S. government securities are exempt from state and local taxes. To determine this amount for each of your funds, multiply the "% of dividends from U.S. government securities" (shown below in Column 1) by the amount for that fund in Box 1a of your Form 1099-DIV.

Check the specific requirements for your state. For example, some states only allow exemptions on dividends for those funds holding a minimum percentage, usually 50%, of government securities at the end of each quarter. We indicate in Column 3, below, whether any of your investments meet this requirement.

State Intangible Property Tax

If you pay state intangible property tax on the value of your fund, you may be able to exclude a portion of such value attributable to the fund's investments in U.S. government securities. To determine this amount, multiply the "% of fund held in U.S. government securities on December 31, 2012" (shown below in Column 2) by the total value of your shares at year end. Consult your tax advisor or your state tax office for more information.

Interest on Direct U.S. Government Securities Tables
T. Rowe Price Domestic Stock Funds
  Column 1
% of Dividends
from U.S.
Government
Securities
Column 2
% of Funds Held
in U.S. Government
Securities on
December 31, 2012
Column 3
U.S. Government
Securities are at
Least 50% of Holdings
at each Quarter End
Balanced 5% 8% No
Blue Chip Growth No
Capital Appreciation 10% No
Capital Opportunity 1% No
Diversified Mid-Cap Growth 1% No
Diversified Small-Cap Growth 1% No
Dividend Growth 5% No
Equity Income 4% No
Equity Index 500 1% No
Extended Equity Market Index 4% No
Financial Services 5% No
Growth & Income 1% No
Growth Stock 1% No
Health Sciences 2% No
Media & Telecommunications 1% No
Mid-Cap Growth 2% No
Mid-Cap Value 5% No
New America Growth 5% No
New Era 3% No
New Horizons 2% No
Personal Strategy Balanced 2% 8% No
Personal Strategy Growth 1% 3% No
Personal Strategy Income 3% 15% No
Real Assets 3% No
Real Estate 3% No
Science & Technology N/A 6% No
Small-Cap Stock 6% No
Small-Cap Value 3% No
Tax-Efficient Equity 1% No
Total Equity Market Index 3% No
U.S. Large-Cap Core 1% No
Value 1% No

T. Rowe Price Taxable Bond Funds
  Column 1
% of Dividends
from U.S.
Government
Securities
Column 2
% of Funds Held
in U.S. Government
Securities on
December 31, 2012
Column 3
U.S. Government
Securities are at
Least 50% of Holdings
at each Quarter End
Corporate Income 2% 2% No
Emerging Markets Bond 3% No
Emerging Markets Corporate Bond 5% No
Emerging Markets Local Currency Bond 5% No
Floating Rate 12% No
GNMA 1% 2% No
High Yield 1% 3% No
Inflation Protected Bond 94% 93% Yes
International Bond 4% No
New Income 7% 20% No
Prime Reserve 6% 12% No
Short-Term Bond 3% 11% No
Strategic Income 1% 18% No
Summit Cash Reserves 6% 12% No
Summit GNMA 1% 2% No
Ultra Short-Term Bond 14% 13% No
U.S. Bond Enhanced Index 14% 27% No
U.S. Treasury Intermediate 74% 91% Yes
U.S. Treasury Long-Term 82% 92% Yes
U.S. Treasury Money 30% 44% No

T. Rowe Price International Stock Funds
  Column 1
% of Dividends
from U.S.
Government
Securities
Column 2
% of Funds Held
in U.S. Government
Securities on
December 31, 2012
Column 3
U.S. Government
Securities are at
Least 50% of Holdings
at each Quarter End
Africa & Middle East No
Emerging Europe1 No
Emerging Markets Stock 3% No
European Stock 1% No
Global Infrastructure 1% No
Global Large-Cap Stock 1% No
Global Real Estate 4% No
Global Stock No
Global Technology 1% No
International Discovery 4% No
International Equity Index No
International Growth & Income 2% No
International Stock 2% No
Japan 2% No
Latin America No
New Asia 1% No
Overseas Stock 3% No

T. Rowe Price Retirement and Spectrum Funds
  Column 1
% of Dividends
from U.S.
Government
Securities
Column 2
% of Funds Held
in U.S. Government
Securities on
December 31, 2012
Column 3
U.S. Government
Securities are at
Least 50% of Holdings
at each Quarter End
Retirement 2005 6% 18% No
Retirement 2010 5% 15% No
Retirement 2015 4% 11% No
Retirement 2020 3% 8% No
Retirement 2025 2% 5% No
Retirement 2030 1% 4% No
Retirement 2035 1% 3% No
Retirement 2040 1% 3% No
Retirement 2045 1% 3% No
Retirement 2050 1% 3% No
Retirement 2055 1% 3% No
Retirement Income 9% 26% No
Spectrum Growth 2% No
Spectrum Income 3% 10% No
Spectrum International 2% No

T. Rowe Price Institutional Funds
  Column 1
% of Dividends
from U.S.
Government
Securities
Column 2
% of Funds Held
in U.S. Government
Securities on
December 31, 2012
Column 3
U.S. Government
Securities are at
Least 50% of Holdings
at each Quarter End
Institutional Africa & Middle East No
Institutional Concentrated International Equity 5% No
Institutional Core Plus 5% 20% No
Institutional Emerging Markets Bond 3% No
Institutional Emerging Markets Equity 3% No
Institutional Floating Rate 10% No
Institutional Global Equity 1% No
Institutional Global Large-Cap Equity No
Institutional Global Value Equity No
Institutional High Yield 1% 3% No
Institutional International Bond 5% No
Institutional International Core Equity 1% No
Institutional International Growth Equity 2% No
Institutional Large-Cap Core Growth 1% No
Institutional Large-Cap Growth 1% No
Institutional Large-Cap Value 4% No
Institutional Mid-Cap Equity Growth 1% No
Institutional Small-Cap Stock 2% No
Institutional U.S. Structured Research 1% No

Download an Institutional Funds Prospectus

T. Rowe Price Variable Annuity Portfolios2
  Column 1
% of Dividends
from U.S.
Government
Securities
Column 2
% of Funds Held
in U.S. Government
Securities on
December 31, 2012
Column 3
U.S. Government
Securities are at
Least 50% of Holdings
at each Quarter End
Blue Chip Growth Portfolio 1% No
Equity Income Portfolio 3% No
Equity Index 500 Portfolio 3% No
Health Sciences Portfolio 2% No
International Stock Portfolio 2% No
Limited-Term Bond Portfolio 3% 11% No
Mid-Cap Growth Portfolio 2% No
New America Growth Portfolio 5% No
Personal Strategy Balanced Portfolio 2% 7% No
Prime Reserve Portfolio N/A 11% No

For existing clients who are considering an exchange or investment into a new portfolio and would like to request a prospectus, please call 1-800-469-6587. The prospectus includes investment objectives, risks, fees, expenses, and other information that should be read carefully before investing.

1Formerly Emerging Europe & Mediterranean Fund.

2The T. Rowe Price No-Load Variable Annuity is issued by Security Benefit Life Insurance Company (Form V6021). In New York, it is issued by First Security Benefit Life Insurance and Annuity Company of New York, White Plains, New York (FSB201 - 11/96). The Variable Annuity, which has been available since April 1995, and in New York since November 1995, has limitations; contact your representative. It is distributed by T. Rowe Price Investment Services, Inc., T. Rowe Price Insurance Agency, Inc., and T. Rowe Price Insurance Agency of Texas, Inc. The underlying portfolios are managed by T. Rowe Price Associates, Inc. The Security Benefit Group of companies and the T. Rowe Price companies are not affiliated. The Variable Annuity may not be available in all states.

Percentages are the same for all fund classes (Investor, Advisor, R, F, and II Class).

N/A is indicated where a fund did not pay a dividend or short-term capital gain, or pass through a foreign tax expense in 2012.

A dash indicates that the fund paid a dividend or short-term capital gain in 2012, but no income was from government securities.

Copyright 2013, T. Rowe Price Investment Services, Inc., Distributor. All rights reserved.