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Say, for example, Lou has the following retirement accounts:
  • IRAs with three different mutual fund companies,
  • One SEP-IRA, and
  • Two 403(b) accounts.
Lou must calculate the RMD for each of his three IRAs and for his SEP-IRA. He may then withdraw the combined IRA RMD total from just one of the IRAs—or from any combination of the four accounts. Lou must calculate the RMD for each of his two 403(b) accounts. He may then withdraw the combined 403(b) RMD total from just one of the 403(b) accounts.
Jane is calculating her RMD for 2010. In 2009, her bank IRA had a balance of $15,000. At the end of December 2009, she transferred $7,000 from her bank IRA to her IRA at T. Rowe Price, where her balance was $60,000. The transfer was in process on December 31, and the $7,000 does not appear on her year-end statement for either her bank or her mutual fund account. When calculating her RMD, she will use $8,000 as her account balance in the bank IRA ($15,000 - $7,000) and $67,000 ($60,000 + $7,000) as the account balance in her T. Rowe Price IRA.

At T. Rowe Price, there are three ways to set up a required minimum distribution program: online, by phone, or by mail.

  • Online
    Our RMDNavigatorSM* tool is for T. Rowe Price investors who have all of their retirement assets invested entirely at T. Rowe Price. If you wish to have us calculate and distribute your RMD automatically, the RMDNavigator will lead you through the process online, and set up your distribution program.

    *RMDNavigatorSM is only appropriate for owners of T. Rowe Price Traditional and Rollover IRAs.
  • By Phone
    Call a T. Rowe Price retirement specialist at 888-421-0563. We will assist you in setting up your RMD program.
  • By Mail
    Download, complete, and mail the appropriate form.

Remember: Your RMD program at T. Rowe Price is free and the program is updated automatically every year.

The RMD Process

Whether you choose to set up your RMD program online, by phone, or by mail, these six steps will be part of the process.

Step 1: Gather Your Account Information

Gather your most recent year-end statements for each T. Rowe Price retirement account you want to include in your RMD calculation. If applicable, balances from your T. Rowe Price Savings Bank IRA Certificate of Deposit (CD) account may also be included in the calculation.

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Step 2: Calculate Your RMD

Divide your account balance on December 31 of the previous year by your appropriate age-based factor for the calculation year.

Remember that if you have assets "in transit" on December 31 of the year prior to your calculation year (e.g., 2009, for your 2010 RMD), they must be included in the balance of the receiving account.

See an example

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Step 3: Choose the Account(s) for Your Withdrawals

Although you must include balances from all your accounts in your calculations, once you have determined your total combined RMD amount, you may withdraw that amount from any one, or any combination, of your accounts of the same type.

See an example


This includes any balances you hold in a T. Rowe Price Savings Bank IRA CD. Note that while normally there would be an early withdrawal penalty for withdrawing from a CD before its maturity, when the withdrawal is to satisfy an RMD, no penalty would be imposed.

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Step 4: Choose the Timing for Your Distribution

In most cases, you can defer only your first RMD payment to April 1 of the year after you turn 70½. If you choose to take your first RMD in the year after you turn 70½, you will still have to take your second RMD (the RMD for that calendar year) before December 31 of that same year.

T. Rowe Price's retirement specialists can provide information to help you understand your options, but you should also consult your tax professional to determine which is most advantageous for you. You may elect to receive your RMD monthly, quarterly, semiannually, or annually.

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Step 5: Decide Where Your Distribution Will Go

You have four options for receiving your distribution:

  1. Transfer into an existing T. Rowe Price nonretirement account
  2. Set up a new T. Rowe Price nonretirement account
  3. Electronic transfer to your bank account
  4. Payment by check

Make sure your personal and banking information is current by accessing your accounts online.

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Step 6: Decide If You Want Taxes (Federal and Possibly State) Withheld From Your Distribution

We are required to withhold federal income tax from your distribution unless you elect not to have withholding apply. You may change this election at any time.

In most cases, unless you indicate otherwise, federal income tax will be withheld at a rate of 10%. You may elect not to have income tax withheld from your distribution, and you may also request to have more than 10% withheld. Many retirees choose to have withholding apply. Consult a tax advisor to determine which option is best for you.

Some states require us to withhold state taxes if federal taxes are withheld from the distribution. If you elect not to have federal taxes withheld, or you do not reside in a mandatory withholding state, state taxes will not be withheld from your distribution. Consult a tax advisor or the applicable agency within your state to determine which rules apply to you.

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