2022 Section 163(j) Interest Dividends
A fund that earns interest income may, in its discretion, designate all or a portion of ordinary dividends as Section 163(j) interest dividends, which would allow the recipient to treat the designated portion of such dividends as interest income for purposes of determining the business interest expense deduction limitation under Section 163(j) of the Internal Revenue Code.
To be eligible to treat a Section 163(j) interest dividend as interest income, you must have held the fund share for more than 180 days during the 361-day period beginning on the date which is 180 days before the date on which the share becomes ex-dividend with respect to such dividend unless an exception applies (see Footnote 1 below).
To determine the amount qualifying as 163(j) interest dividends, multiply the "percent qualifying as 163(j) Interest Dividends" (shown in the table) by the amount of your total ordinary dividends. Please note that ordinary dividends of a fund include, if applicable, net short-term capital gains and foreign taxes paid.
|T. Rowe Price Fund||Percent Qualifying as 163(j) Interest Dividends1|
|Domestic Stock Funds|
|Balanced (All Quarters)||37.41|
|Multi-Strategy Total Return||70.03|
|Spectrum Conservative Allocation (All Quarters)||61.98|
|Spectrum Moderate Allocation (All Quarters)||44.08|
|Spectrum Moderate Growth Allocation||26.60|
|Taxable Bond and Money Market Funds|
|Inflation Protected Bond||99.34|
|Limited Duration Inflation Focused Bond||99.16|
|QM U.S. Bond Index||95.07|
|Short Duration Income||100.00|
|U.S. High Yield||98.22|
|U.S. Limited Duration TIPS Index||95.77|
|U.S. Treasury Intermediate Index||99.43|
|U.S. Treasury Long-term Index||99.71|
|U.S. Treasury Money||99.95|
|Ultra Short-Term Bond||96.24|
|International/Global Bond Funds|
|Dynamic Global Bond||36.66|
|Emerging Markets Bond||98.44|
|Emerging Markets Corporate Bond||98.34|
|Global High Income Bond||62.45|
|Global Multi-Sector Bond||79.77|
|International Bond (USD Hedged)||22.93|
Percentages are the same for all fund classes (Investor, Advisor, R, and I classes). For more information on Advisor, R, Institutional, and Portfolio funds, please visit our website for financial intermediaries.
If a fund is not listed, it did not designate any ordinary dividends as Section 163(j) interest dividends.
1The holding period requirement does not apply to money market funds or funds that declare interest dividends on a daily basis in an amount equal to at least 90 percent of the fund’s excess section 163(j) interest income and distribute such dividends on a monthly basis. You should always consult your own tax advisor concerning any tax item for your tax reporting purposes. Tax laws and regulations are complex and subject to change. The description of Section 163(j) dividends herein is very general, is provided for informational purposes only, and is not a complete description of the governing laws and regulations. T. Rowe Price does not provide legal or tax advice and does not guarantee the accuracy or completeness of the information herein, T. Rowe Price disclaims any and all liability arising out of your use of, or any tax position you have taken in reliance on, any of the information herein.
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