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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.

Qualified Dividend Income Percentage Tables
T. Rowe Price Domestic Stock Funds
  Qualified Dividend Income Percentage1
Balanced (All Quarters)   47%
Blue Chip Growth N/A
Capital Appreciation 34%
Capital Opportunity 100%
Diversified Mid-Cap Growth 100%
Diversified Small-Cap Growth 100%
Dividend Growth (All Quarters) 100%
Equity Income (All Quarters) 100%
Equity Index 500 (All Quarters) 100%
Extended Equity Market Index 38%
Financial Services 100%
Growth & Income (All Quarters) 100%
Growth Stock 100%
Health Sciences 28%
Media & Telecommunications 49%
Mid-Cap Growth 100%
Mid-Cap Value 94%
New America Growth 21%
New Era 100%
New Horizons 28%
Personal Strategy Balanced (All Quarters) 40%
Personal Strategy Growth 80%
Personal Strategy Income (All Quarters) 29%
Real Assets 88%
Real Estate (All Quarters) 3%
Science & Technology N/A
Small-Cap Stock 87%
Small-Cap Value 100%
Tax-Efficient Equity 100%
Total Equity Market Index 100%
U.S. Large-Cap Core 60%
Value 74%
T. Rowe Price Taxable Bond Funds
  Qualified Dividend Income Percentage1
Corporate Income
Floating Rate
GNMA
High Yield 1%
Inflation Protected Bond
New Income
Prime Reserve
Short-Term Bond
Strategic Income 1%
Summit Cash Reserves
Summit GNMA
Ultra Short-Term Bond
U.S. Bond Enhanced Index
U.S. Treasury Intermediate
U.S. Treasury Long-Term
U.S. Treasury Money
T. Rowe Price Tax-Free Bond Funds
  Qualified Dividend Income Percentage1
California Tax-Free Bond N/A
California Tax-Free Money N/A
Georgia Tax-Free Bond N/A
Maryland Short-Term Tax-Free Bond N/A
Maryland Tax-Free Bond N/A
Maryland Tax-Free Money N/A
New Jersey Tax-Free Bond
New York Tax-Free Bond
New York Tax-Free Money N/A
Summit Municipal Income N/A
Summit Municipal Intermediate N/A
Summit Municipal Money Market N/A
Tax-Exempt Money N/A
Tax-Free High Yield
Tax-Free Income N/A
Tax-Free Short-Intermediate N/A
Virginia Tax-Free Bond N/A
T. Rowe Price International Stock and Bond Funds
  Qualified Dividend Income Percentage1
International Stock Funds
Africa & Middle East 40%
Emerging Europe 100%
Emerging Markets Stock 100%
European Stock 100%
Global Allocation 100%
Global Growth Stock2 34%
Global Industrials N/A
Global Infrastructure 100%
Global Real Estate (All Quarters) 30%
Global Stock 100%
Global Technology 7%
International Discovery 60%
International Equity Index 68%
International Growth & Income 87%
International Stock 100%
Japan (June and December) 74%
Latin America 56%
New Asia 51%
Overseas Stock 86%
International Bond Funds
Emerging Markets Bond
Emerging Markets Corporate Bond
Emerging Markets Local Currency Bond
International Bond N/A
T. Rowe Price Retirement and Spectrum Funds
  Qualified Dividend Income Percentage1
Retirement 2005 33%
Retirement 2010 39%
Retirement 2015 43%
Retirement 2020 52%
Retirement 2025 55%
Retirement 2030 63%
Retirement 2035 73%
Retirement 2040 76%
Retirement 2045 76%
Retirement 2050 76%
Retirement 2055 75%
Retirement Income 39%
Spectrum Growth 87%
Spectrum Income 8%
Spectrum International 87%
Target Retirement 2005 47%
Target Retirement 2010 49%
Target Retirement 2015 58%
Target Retirement 2020 55%
Target Retirement 2025 62%
Target Retirement 2030 64%
Target Retirement 2035 68%
Target Retirement 2040 69%
Target Retirement 2045 70%
Target Retirement 2050 73%
Target Retirement 2055 68%
T. Rowe Price Variable Annuity Portfolios3
  Qualified Dividend Income Percentage1
Blue Chip Growth Portfolio 100%
Equity Income Portfolio (All Quarters) 100%
Equity Index 500 Portfolio (All Quarters) 99%
Health Sciences Portfolio 37%
International Stock Portfolio 100%
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio 100%
New America Growth Portfolio 19%
Personal Strategy Balanced Portfolio
(All Quarters)
46%
Prime Reserve Portfolio

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.

Copyright 2014, T. Rowe Price Investment Services, Inc., Distributor. All rights reserved.