You’ve worked hard for your savings Now keep your savings working hard for you

You’ve worked hard for your savings.
Now keep your savings working hard for you.
Retire with confidence®
A guide to your
distribution
options.

As you reach life’s milestones,
we can help navigate the way ahead.
When changing jobs or retiring, it’s important to take a look at your savings and make
informed decisions about how to keep your money working toward your retirement goals.
As you move forward in life, this brochure can help you move wisely.
Want help right now?
By phone:
Online:
Call toll free at 1-888-445-4226 business days from 7 a.m. to 10 p.m. eastern
time to speak with a Retirement Specialist. A T. Rowe Price Retirement
Specialist can help you assess your situation, discuss your options, answer
your questions, and take action.
Visit the myRetirementPlan Web site at rps.troweprice.com and click on the
Distributions tab for more information and helpful tools. You’ll also find the
myDistributionGuide, which can help you evaluate your options and create
an action plan.

What are you looking for?
2 Your distribution options
Staying on track
Deciding what’s right for you
4 About rollovers and IRAs
Traditional versus Roth IRAs
How to select an IRA provider
Consider a T. Rowe Price Rollover IRA
6 Rules of thumb for different life stages
Develop a retirement income strategy
A word about company stock and loans
8 Helpful resources from T. Rowe Price
Retirement Specialists
Online tools
Advice and guidance
1

Your distribution options
Staying on track with your retirement savings
Your retirement savings is part of your nest egg. Its purpose is to help sustain you financially
when you retire. You want to preserve your savings and allow the money to keep growing
tax-deferred until you need it— as you need it—throughout retirement. Depending on
which life stage you may be facing—whether you are changing jobs, nearing retirement, or
retiring—you have different decisions to make about how to handle your retirement account.
This guide is meant to help you through those decisions.
Everyone who faces the distribution decision has some common choices to make, such as
how to invest and how to keep your money working for you. Regardless of your stage in life,
you’ve worked hard to save for retirement. It’s important to keep your retirement account
working for you.
The table below shows the potential impact that taking a withdrawal could have on your
savings—in this example, a difference of more than $110,000 after 20 years.
Consequences of Withdrawing Your Savings
If you take a distribution, you will pay taxes now, and
you also risk having less money for retirement if you
place your balance in a taxable account.
Your total account balance $40,000
20% withholding 1 -$8,000
Additional current federal and state tax 1 -$3,500
10% early withdrawal penalty 2 -$4,000
Account balance after taxes and penalty $24,500
Potential account value in 20 years 3 $76,236
Advantages of Staying Invested Tax-Deferred
If you keep your account tax-deferred—by rolling over
your money into a Traditional IRA or keeping it in an
eligible plan—you avoid paying taxes now and give your
money the opportunity to grow tax-deferred.
$40,000
-$0
-$0
-$0
$40,000
$186,438 4
1
Assumes a tax rate of 28.75% (federal and state) in the year of distribution. 20% withholding at time of
distribution. Additional taxes payable by April 15 the year following a distribution.
2
If you are under age 59 1 /2, a 10% penalty may apply.
3
Assumes a hypothetical 5.85% annual rate of return and no early withdrawal penalty at the end of
20 years. This is for illustrative purposes only and is not intended to demonstrate the past performance or
future results of any investment. Your results may vary.
4
Taxes are payable when money is withdrawn from the account.
Remember that retirement investing is a long-term process, and although resources are
available to help, it is up to you to take an active role in your future. If you ever have
questions or need help getting on the right track, feel free to call T. Rowe Price at
1-888-445-4226. Representatives are available on business days from 7 a.m. to 10 p.m. eastern
time.
Call 1-888-445-4226 to request a prospectus, which includes investment objectives, risks, fees,
expenses, and other information that you should read and consider carefully before investing.
2

Deciding what’s right for you
Considerations and questions to help you with your decision
A good way to keep your retirement savings tax-deferred is to stay in your
current plan or roll over to an IRA (see “Consider a T. Rowe Price Rollover
IRA,” p. 5). This table can help you weigh the pros and cons of each option:
You’re not alone—
Help is at hand
See page 8 to learn how a T. Rowe Price
Retirement Specialist can help you
understand your options and what
steps may be right for you.
Considerations
Considerations
Stay in the plan
Stay tax-deferred
Avoid current taxes and penalties
Continue to enjoy the same tools, services, and
investments you’ve come to know
Continue with a low-cost provider
Distributions and investments are based on your
plan’s provisions
Could be your easiest option
Ask yourself
Ask yourself
Do I want to continue investing with my current
provider?
Am I satisfied with my plan’s investment choices?
Am I satisfied with my plan’s distribution policies?
What to do
What to do
No action required
If or when your needs change or to talk through
your options in more detail, call T. Rowe Price at
1-888-445-4226
Roll over
Stay tax-deferred
Avoid current taxes and penalties
Additional investment options available
Consolidate your retirement savings
IRA
Flexible IRA withdrawal options
Continue with a low-cost provider
New plan
Loans may be available
Should I roll over to an IRA or my new plan?
How do I want to invest?
Does a Rollover IRA meet my needs? (See p. 5)
How do I choose an IRA provider? (See p. 4)
How do I decide between a Roth and Traditional IRA?
(See p. 4)
Do I need an investment advisor? (See p. 5)
Can I continue investing in my new account?
Have I made Roth contributions to my plan?
Does my new plan accept rollovers?
Call T. Rowe Price at 1-888-445-4226
Or
Go online to rps.troweprice.com and click on the
Distributions tab
Cash out
Tax consequences: Most distributions subject
to 20% withholding
Penalties: 10% early withdrawal penalty may
apply to those under age 59½
Provides immediate access to savings
Can roll over balance within 60 days
Account balance, including any outstanding loans,
taxed as current income in year of distribution
Do I need my retirement savings now?
How much money will I get?
How will I be affected by taxes and potential penalties?
Call T. Rowe Price at 1-888-445-4226
3

About rollovers and IRAs
What is a rollover?
A rollover is when your retirement savings account is moved from your employer’s retirement
plan to a Traditional IRA, Roth IRA, or another retirement plan.
Here are some rollover considerations and guidelines:
• An IRA (individual retirement account) is separate from your employer-sponsored plan.
The fees, investment options, and distribution options are related to the plan or IRA that
you choose.
How to select an
IRA provider
Choosing an IRA provider may require some
research. Consider these questions as you
evaluate providers:
• What fees will I pay?
• What will I get for those fees?
• What types of investments are available?
• What types of education and service
are available?
• What is the reputation of the provider?
• How do the provider’s investments
and services rate against other
providers?
• A rollover to a Traditional IRA or a new employer plan allows you to continue deferring
taxes on your account and avoid current taxes and potential penalties.
• You may consolidate your IRA and your previous employer retirement plan balance into
one account and possibly continue contributing.
• Your outstanding loan balance cannot be rolled into an IRA, nor may you take a new loan
from an IRA. You may be able to take a loan from your new employer-sponsored plan,
depending on the plan rules.
What is the difference between a Traditional IRA and a Roth IRA?
A Roth IRA is similar to a Traditional IRA but has some important tax differences. As a result,
for some, a Roth IRA may be more advantageous than a Traditional IRA. For more information,
contact T. Rowe Price at 1-888-445-4226.
Rollovers
Traditional IRA
• Standard contributions (non-Roth
contributions) in your employersponsored
plan can be rolled over
to a Traditional IRA
Roth IRA
• Your total account balance in your employersponsored
plan can be rolled over to a Roth IRA
• There are income level requirements for rolling
your non-Roth contribution account to a Roth IRA
• If you wish to roll over non-Roth assets to a Roth
IRA, you will have to pay taxes on that amount in
the year you roll over to the Roth IRA
Distributions •
•
Typically, withdrawals can begin
penalty-free at age 59½
Taxed at your ordinary income rate
• Qualified withdrawals are tax-free if you
withdraw at least five years after your first
Roth IRA contribution and reach other
qualifying events (e.g., age 59½)
upon withdrawal
• Nondeductible contributions are
typically withdrawn tax-free
• Distributions are typically required
to begin at age 70½
• Nonqualified distributions may be subject to
a penalty upon withdrawal
4

Consider a T. Rowe Price
Rollover IRA
In times of change, sticking with who and what you know can be
beneficial. By participating in your employer’s retirement plan, you
already know T. Rowe Price. So, if you’re thinking about rolling your
retirement savings into an IRA (individual retirement account),
consider a T. Rowe Price IRA.
It’s easy to roll over
Initiate your rollover by phone with a Retirement Specialist
at 1-888-445-4226. Or initiate a rollover online using the
myRetirementPlan Web site. Go to rps.troweprice.com and
click on the Distributions tab.
If you want to continue saving for retirement in a tax-advantaged
account, consider an IRA or Roth IRA at T. Rowe Price, and enjoy the
following benefits:
• Stay invested with a low-cost provider.
• Maintain a similar investment lineup—or create a new one—
with access to stocks, bonds, and mutual funds, including most
company stock.
• If you prefer, choose a one-step investment solution with a
pre-assembled T. Rowe Price Retirement Fund that is
professionally managed and adjusted over time for you—
automatically. These funds invest in many underlying funds,
which means they are exposed to the risks of different areas
of the market.
• Enjoy world-class service, investment management excellence,
knowledgeable service representatives, and easy account access.
• Get individualized guidance and advice including T. Rowe Price
Advisory Planning Services (See p. 8).
* Minimum balance to open a T. Rowe Price IRA is $1,000.
Is an investment advisor or financial
planner right for you?
An investment advisor is paid to give advice on investing in stocks,
bonds, or mutual funds. On the other hand, financial planners will
help you assess other aspects of your financial life, including
insurance, taxes, retirement, and estate planning.
Once you’ve determined what kind of help you need, it’s important
that you are comfortable with a particular advisor or planner.
Ask questions:
• What are the person’s educational and professional credentials?
• How many years has he or she been doing business in the
community?
• Can the person recommend a full range of financial products—
or only those of a single company?
• What—exactly—are the payment terms? Hourly? Annual
management fee? Commission on services? A combination?
Understand the arrangement up front, and feel comfortable
with it.
Can T. Rowe Price meet your needs?
Some IRA providers offer services that meet your needs at no
additional cost to you. Contact T. Rowe Price to learn more about
the services and assistance that are available.
5

Rules of thumb for different
Life Stages
Depending on which life stage you may be facing, you have different
decisions to make about how to handle your retirement account.
Your decisions now could have a significant impact on the quality
of your retirement. Here are some tips for each stage of your
retirement planning.
Life Stage: You’re Changing Jobs
Stay tax-deferred and keep saving!
• Keep your retirement account tax-deferred
• Continue saving for retirement, in an IRA or a new employer’s plan
• Consider consolidating your savings into one IRA
• Consider investing for growth to allow your account to build
before you need to tap into it
Life Stage: You’re Changing Jobs and Nearing
Retirement (age 50+)
Stay on course!
• Calculate your income sources and needs at retirement
• Save more, making additional catch-up or IRA contributions,
if needed
• Develop an investment strategy based on your time horizon
• Pay down your debts
Develop a retirement income
strategy
Your retirement savings will become your
retirement income
It’s helpful to think about your retirement savings in terms of being
the money you’ll need to replace the regular paycheck you’ve always
relied on. This is known as your retirement income.
To maintain a familiar lifestyle in your retirement, financial experts
estimate that you’ll need to replace approximately 75% of your preretirement
income each year.
For example, if you’re earning $50,000 the day before you retire,
it’s estimated that you’ll need approximately $37,500 from various
income sources (e.g., retirement savings, Social Security, other income)
during the first year of your retirement to live the way you’re used to.
When you retire, follow a careful
withdrawal strategy
Your retirement could last up to 30 years or longer. That’s a long time
to stretch your retirement savings. Financial experts generally recommend
you base your first year’s withdrawal on your age, increasing
that dollar amount by 3% every year to account for inflation. For
example, if you are age 65 and your combined assets total $500,000,
you could withdraw 4%, or $20,000, in your first year of retirement,
$20,600 in your second year (a 3% increase over $20,000), $21,218 in
your third year, and so on.
Age
60-64
Initial withdrawal amount
(% of ending balance)
3.5%
• Know your distribution options
• Think about when to begin taking benefits
Life Stage: You’re Retiring
65-69
70-74
75-79
4%
5%
6%
Congratulations! Make it last.
• Establish a withdrawal strategy
• Revisit your investment allocation regularly
• Decide what age to start collecting Social Security
• Begin taking required minimum distributions at age 70½
• Set aside a portion of your total savings for emergencies
80-84
85+
7%
10%
Of course, don’t tap into your retirement savings until you need to—
even if that is years after you retire. Your initial withdrawal amount is
based on the age when you start withdrawing, not necessarily the
age in which you retire.
And remember, things come up. Plan on putting aside at least three
to six months of living expenses for unforeseen emergencies.
6

Distribution order matters
In general, it may be best to withdraw from taxable accounts first.
That way the money in tax-deferred accounts has a chance to
continue growing without being taxed. Go about your withdrawals
in this order (after any required minimum distributions):
• Taxable accounts
• Tax-deferred account, such as your retirement plan
• Tax-free accounts, such as after-tax contributions in an IRA,
a Roth 401(k), or a Roth IRA
Keep a substantial amount invested in stocks
Even in retirement, you should maintain a mix of investments that
is based on your time horizon. Retirement could last a long time, and
it’s important to keep your money growing so that you can keep pace
with inflation as well as expenses like health care.
The T. Rowe Price Retirement Funds can help you stay invested in
stocks and shift toward less aggressive investments automatically
over time. Consider them as part of your investment strategy—either
within your plan (if available), or as part of an IRA Rollover
with T. Rowe Price.
A word about company stock
If you own company stock as part of your retirement savings,
consider this: Company stock is one of the most potentially volatile
investments. You don’t want too much of your retirement nest egg
riding on one investment. As a rule of thumb, company stock should
not make up more than 10% of your retirement savings.
If company stock is part of your retirement savings, and you’re
considering taking a distribution, you may have additional options.
Before making a decision concerning any company stock in your
employer plan, we recommend you get professional advice.
A word about loans
If you have an outstanding loan, you need to understand how the
loan impacts your distribution decision. The loan is considered part of
your account balance, so if you take a distribution from the plan, the
amount of the loan will be treated as income.
Here are some considerations on how to handle your outstanding
loan, depending on your plan’s provisions:
• You may be able to stay in the plan, and determine how and if
you can continue paying off the loan.
• If you would like to roll over or take a distribution, consider paying
off the loan first to avoid taxes and penalties on the loan amount.
7

Helpful resources from
T. Rowe Price
Let a T. Rowe Price Retirement Specialist
help you
You don’t have to make your decisions alone. We understand your needs and can help you make
informed choices. Here’s what an experienced Retirement Specialist can do for you:
• Help you move your plan account balance from your employer’s plan to a T. Rowe Price
Rollover IRA
• Provide assistance with your investment choices
• Answer questions about our many no-load mutual funds, products, and services
• Direct you to our free online calculators and planning tools
• Help make every step of your investing experience easier
Help yourself with our online tools
Visit the T. Rowe Price myRetirementPlan Web site at rps.troweprice.com for tips, calculators,
worksheets, analyzers, and much more. You’ll also find free Morningstar tools that can help you
choose and track your investments.
Click on the Distributions tab to find:
• T. Rowe Price myDistributionGuide—a step-by-step, interactive guide lets you evaluate your
distribution options. You can even create an action plan that’s based on your answers to a
few basic questions.
• How to start the rollover process online—follow the steps to establish a T. Rowe Price
Rollover IRA.
Click on the Advice and Tools tabs to find:
• Retirement income estimator—estimate of how much you may receive each month in
retirement based on current retirement balances, savings rates, age, and Social Security
estimates.
• Distribution calculator—the cost of taking an immediate cash distribution versus keeping
your money in a tax-deferred account.
• Retirement budget calculator—walks you through a step-by-step analysis of your current
budget, and then, with the help of some current retirees, helps you estimate how each of
your expenses might change in retirement.
Advice and guidance
T. Rowe Price has many tools to help you select the appropriate investment strategy for you. Our
Retirement Specialists and online tools can assist you. In addition, T. Rowe Price Advisory Planning
Services* provide helpful investment planning, including a complimentary portfolio analysis and
investment guidance for IRA shareholders. Call a Retirement Specialist at 1-888-445-4226 for more
information or to determine what type of assistance meets your needs.
*Services of T. Rowe Price Associates, Inc., a federally registered investment advisor. There may be costs
associated with these services.
8

Let T. Rowe Price help keep
your money working for you
By phone: Call toll-free at 1-888-445-4226. You can speak with an
experienced Retirement Specialist during business days
from 7 a.m. to 10 p.m. eastern time.
Online:
Visit the myRetirementPlan Web site at rps.troweprice.com.
Click on the Distributions tab for more information and helpful tools.
T. Rowe Price Retirement Plan Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this brochure is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter
addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this brochure.

T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds.
06181-282 DMB260-DIST 1/09
74279