RMD Alternatives - T. Rowe Price
Keep Your RMD Assets Working at T. Rowe Price

For some investors, RMDs represent an opportunity to consider increasing their contributions to existing investments, or starting new ones. You have a number of options to reinvest your RMD, including reinvesting into a T. Rowe Price non-retirement investment account, contributing to a college savings plan, or contributing to a donor-advised fund. We offer a wide range of mutual funds, and our retirement specialists can provide information so that you can find the investments that may suit your goals. Here are some ideas to consider.

We offer more than 90 low-cost mutual funds that let you invest in stocks, bonds, money markets, and international securities. These funds benefit from our proven management style that seeks consistent long-term returns while attempting to reduce risk. Use our Mutual Funds Research tool to find the T. Rowe Price mutual funds that best fit your investment approach

If you don't need your RMDs for living expenses, you may want to consider using your distributions from retirement account(s) to fund a college savings 529 plan for a child or grandchild. 529 plans are a smart way to save for rising education costs and give you:

  • Tax-free growth potential: Any earnings kept within the plan are not taxed, and all withdrawals for qualified educational expenses are federal income tax-free.
  • Complete control over your money: You control the account assets until they're withdrawn, and you can change beneficiaries later if you like.
  • Varied investment options: You have a choice of several professionally managed portfolios that offer different levels of risk and reward, depending on your time horizon.
  • Freedom to contribute: You can open an account for anyone—there are no limits based on age, income, or your relationship to the beneficiary.

T. Rowe Price manages three college savings 529 plans.

Earnings on a distribution not used for qualified expenses may be subject to income taxes and a 10% federal penalty. Please note that the availability of tax or other benefits may be conditioned on meeting certain requirements such as residency, purpose for or timing of distributions, or other factors, as applicable.

Please call 800-369-3641 or visit troweprice.com/college to request a plan disclosure document, which includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Consider, before investing, whether your or your beneficiary's home state offers any state tax or other benefits that are only available for investments in that state's plan.

Individuals aged 70½ or older sometimes consider using their RMD to support their charitable giving. Two ways of doing this are to contribute their RMD to a donor-advised fund or make a Qualified Charitable Distribution.

Here's how the Program works:

  • Your contribution of cash or long-term appreciated securities establishes your Program account.
  • You decide how your contributions are invested among six investment pools managed by T. Rowe Price with the potential to grow.
  • When you want to support your favorite causes, simply recommend a grant distribution from your Program account.

A Program account has the added advantage of allowing you to name friends, family members, or trusted professionals as advisors. You can also carry on your tradition of charitable giving beyond your lifetime by naming individuals as successors to your account or beneficiary organizations to receive your account balance.

The T. Rowe Price Program for Charitable GivingSM is an independent nonprofit corporation and donor-advised fund founded by T. Rowe Price to assist individuals with planning and managing their charitable giving.