Yes. There is no prohibition to opening Retirement Income 2020 Fund in a taxable account registration.
A smart way to supplement your retirement income.
Consider the new T. Rowe Price Retirement Income 2020 Fund (TRLAX), designed for people in or nearing retirement, who are looking for regular monthly payouts from their investments. In addition to ongoing monthly dividend income, you get the convenience of an all-in-one fund with ready access to your money when needed.
Automatic monthly payments
Provides a regular monthly payment equaling an annual payout of 5% of the fund’s average net asset value over the past five years.
No additional fee. No commissions.
You pay the expenses of the underlying funds similar to other retirement date funds.
Freedom to withdraw additional funds
You have ready access to your money whenever you want.
Specially designed portfolio
Composed primarily of actively-managed T. Rowe Price mutual funds.
Get started with a minimum investment of $25,000.
Available for Traditional or Roth IRAs. Current Retirement and Target Fund shareholders may exchange.
The annual payout for the following calendar year is calculated September 30th of each year. This monthly distribution varies from year to year based on the fund’s performance and the number of fund shares held in the account.
- The total calendar-year distribution amount is determined by calculating 5% of the fund’s average net asset value (NAV) over the trailing five years.
The fund automatically makes 12 equal monthly dividend payments to investors each calendar year.
The Retirement Income 2020 Fund is a “managed payout fund” designed to pay income on a monthly basis. It invests in T. Rowe Price funds and is managed according to the same glide path and asset allocation as our Retirement 2020 Fund.
Similar to the Retirement 2020 Fund, this fund allocates about 55% of assets to stocks at its target date. This will reduce over the following 30 years when its allocation will be fixed at about 20% stocks and 80% bonds.
T. Rowe Price has been a leader in target date fund design since 2002. We manage all our target date funds to help investors meet their goals up to and through retirement. Now we’ve applied that expertise to the Retirement Income 2020 Fund, creating an income-generating solution for retiring investors.
The principal value of the fund is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the fund may not be an appropriate investment even if the investor is retiring on or near the target date. The fund’s allocations among a broad range of underlying T. Rowe Price stock and bond funds will change over time. Diversification cannot assure a profit or protect against loss in a declining market. The fund emphasizes potential capital appreciation during the early phases of retirement asset accumulation, balances the need for appreciation with the need for income as retirement approaches, and focuses on supporting an income stream over a long-term postretirement withdrawal horizon. The fund is not designed for a lump-sum redemption at the target date and does not guarantee a particular level of income. The fund maintains a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons. There is no guarantee that the fund will provide adequate income at and through your retirement. The fund’s monthly cash distributions will reduce the amount of assets available for investment by the fund. In certain years, achieving the targeted annual payout rate through twelve equal monthly dividend payments may result in a drawdown on investment principal and some distributions may be treated in part as a return of capital. For all of these reasons, there is no guarantee of principal for investors and no guarantee that the fund will provide a fixed or stable level of cash distributions at any time or over any particular period of time. Any fund redemptions, including redemptions made prior to the target date, will proportionately reduce the amount of future cash distributions to be received from the fund.