All or a portion of your ordinary income dividend from a mutual fund may be taxed at a reduced capital gains rate rather than the higher marginal rates applicable to ordinary income. The amount of your dividend subject to this lower rate is reported in Box 1b of your Form 1099-DIV mailed in January 2014. The tax forms for the T. Rowe Price Real Assets, Real Estate, Global Real Estate, and Small-Cap Value Funds will mail in February.
The tables below report the percentage of the ordinary dividend paid by the T. Rowe Price funds that qualify for the lower dividend rate. The data is provided here for informational purposes only and to assist you in your tax planning. In preparing your tax return, please use the amount in Box 1b of your Form 1099-DIV.
To treat a dividend as qualifying for lower rates, you must have held your shares on which you received the dividend for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of the distribution. You may find your fund's ex-dividend date here.
In addition, the ordinary dividend of a mutual fund (the amount included in Box 1a of Form 1099-DIV) includes net short-term capital gains and foreign taxes paid, which may not qualify for the lower rates. As a result, the percentage of the Box 1a amount that qualifies for the lower tax rate can vary widely from year to year, depending on the amount of short-term gains and foreign taxes reported by the fund.
If you own a fund that has more than one distribution during the year, the amount reported in Box 1b of your Form 1099-DIV will be based on the qualifying percentage for each distribution.
Calculations based on the percentages below may yield amounts that differ from the amounts on your Form 1099-DIV due to rounding.
- Domestic Stock Funds
- Taxable Bond Funds
- Tax-Free Bond Funds
- International Stock and Bond Funds
- Retirement and Spectrum Funds
- Variable Annuity Portfolios
Percentages are the same for all fund classes (Investor, Advisor, R, and II).
N/A indicates that a fund did not pay a dividend or short-term capital gain or pass through a foreign tax expense in 2013.
A dash indicates that the fund paid a dividend in 2013, but it was not qualified dividend income.
1This percentage applies to the sum of your income dividend plus short-term capital gain distribution and foreign tax paid for the calendar year as reported in Box 1a of your IRS Form 1099-DIV.
2Effective 11/1/13, the Global Large-Cap Stock Fund was renamed the Global Growth Stock Fund.
3For 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 and considered carefully before investing.
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). Security Benefit Life is not licensed in New York and does not solicit business in New York. The Variable Annuity, which has been available since April 1995, and in New York since November 1995, has limitations; contact your representative. It was distributed previously by T. Rowe Price Investment Services, Inc., and T. Rowe Price Insurance Agency, Inc., and is no longer available to new contract holders. 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.