FAQs About the T. Rowe Price ActivePlus Portfolios^® program

T. Rowe Price ActivePlus Portfolios is a digital discretionary investment management service currently comprised of 10 model portfolios designed to meet specific objectives. Each model portfolio invests in approximately 8 to 15 T. Rowe Price mutual funds according to a predetermined asset allocation strategy. How it works:

• The program recommends a model portfolio based on information you provide in response to our online questionnaire, such as your investing time horizon and risk tolerance. Once you receive your recommendation, it’s easy to open an account.
  
• We regularly monitor the model portfolios and rebalance the asset allocation of each as determined by our investment professionals. When the model portfolio is rebalanced, we seek to rebalance your account to generally align it with the target allocation of your recommended portfolio. Note: If you restrict any funds,* we will still rebalance your account to align with your target allocation, to the extent allowable. 
  
• At least annually, you should review your risk tolerance and time horizon. It’s important to let us know if things change—such as life events or your financial situation. You can update your profile anytime to receive a new model portfolio recommendation.
  

Once your account is assigned to a model portfolio, we will diversify your holdings by aligning the asset allocation of your account with the model portfolio appropriate for your time horizon and risk tolerance. Because we manage your account based on your most recent responses to our questionnaire, you must update your time horizon and risk tolerance anytime there are changes to your individual circumstances. In addition, at least annually, you must update your time horizon to reflect the passage of time so that we can adjust your portfolio as necessary.

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It takes just a few minutes to navigate the questionnaire and get a portfolio recommendation. You’ll then have an opportunity to open and fund an account, or retake the questionnaire to refine your answers and update the recommendation.

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T. Rowe Price ActivePlus Portfolios combines the ease and convenience of digital investing with the insights and expertise of our investment professionals. You can expect:

• Discretionary management of your account, including asset allocation, portfolio rebalancing, and trading decisions.
• No additional advisory fees to manage your account and no commissions—you pay the expenses of the underlying T. Rowe Price funds in your account, which are the same expenses that all fund shareholders pay.
• Tenured investment teams that actively monitor the markets, manage risk, and seek opportunities that offer the most long-term potential.
• A diversified account invested in a select model portfolio of actively managed T. Rowe Price mutual funds designed to meet specific objectives.
• Access to licensed Financial Advisors who can answer questions about your account and more.

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Your recommendation consists of a diversified portfolio of actively managed T. Rowe Price mutual funds and is backed by our strategic investing approach.

Since 1937, strategic investing has guided how we uncover opportunities for our clients. More than 550¹ of our investment professionals go out into the field to visit the companies they cover. They ask the right questions to gain a deeper understanding of where a company stands today and where it could go in the future. This depth of understanding helps us to make the best investment decisions as we seek to achieve your objectives.

We believe in strategic investing—because your investments are too important to be on autopilot.

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¹Investment professionals as of 12/31/2022. Figures include T. Rowe Price Associates, Inc. and its investment advisory affiliates including T. Rowe Price Investment Management, Inc.

There are several important differences:

Target date funds:

• Target date funds: are designed to provide a diversified portfolio. The funds' allocations to stocks and bonds are adjusted over time along a “glide path” that becomes more conservative as an investor approaches the year in which they plan to start withdrawing money.
• Investors select a target date fund based on their age or time horizon. The fund automatically adjusts its allocation to reflect the passage of time.
  
• Investors own the specific target-date mutual fund, which in turn is made up of a number of funds.

T. Rowe Price ActivePlus Portfolios:

• A discretionary investment management program that recommends a model portfolio consisting of T. Rowe Price mutual funds based on a client’s answers to our questionnaire about the client’s risk tolerance and time horizon.
  
• Clients can request restrictions on most of the underlying funds in their portfolio as well as see the trading activity that occurs among their portfolio holdings. 
• Unlike target date funds, the client’s asset allocation does not follow a glide path—that is, it’s not automatically adjusted to reflect the passage of time.
• Clients are responsible for updating their risk tolerance and time horizon as needed. We will not change the client's portfolio to reflect the passage of time. Although we may make changes within a model based on market conditions, we will not assign a new model to a client without an updated questionnaire. 
• Unlike a target-date fund, investors have a position in each of the underlying funds within the model portfolio.
  

Our recommendation is based on your answers to our online questionnaire about your investing time horizon and risk tolerance. These answers also provide other information, like your past investing experience and reactions to potential market volatility, to arrive at a final recommendation.

Check out our program methodology for details about how we determine recommendations, design and manage model portfolios, and more.

No, you should answer the questions as they relate only to the assets you plan to invest in this program account.

We take great care to develop questions that are straightforward while providing the information we need to recommend the corresponding model portfolio for you.

The questions reflect the input, insights and experience of our senior financial planners, members of our retirement & financial education group.

As you navigate the questionnaire, you can select “Why We're Asking” to learn more about what your response is telling us about you. 

To be eligible for this program, you must:

• Be 18 years old
• Reside in the U.S.
• Meet the account minimum of $50,000 in a Traditional, Rollover, or Roth IRA

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Yes, everything you need to enroll and participate in this program is available online. However, you can connect to a real person anytime you have questions. Associates are available weekdays between 8 a.m. and 8 p.m. ET. Call us at 1-800-366-5910.

We offer this program for the following individual retirement account (IRA) types:

• Roth IRA
• Traditional IRA
• Rollover IRA

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Once you open your account and we receive your funds in good order, it may take up to five business days for your money to be invested. See below for more details.

You can use cash, T. Rowe Price mutual funds, or marketable securities in a T. Rowe Price Brokerage account, such as:

• Mutual Funds from Other Fund Families
• Stocks
• ETFs

Other securities held in your T. Rowe Price Brokerage account must first be sold with the proceeds showing as an available balance in your sweep account to fund your new account.

The processing period takes multiple business days. Requests received by market close (normally 4 p.m. ET) are processed with the activity for that business day. Requests received after market close are processed with the activity of the next business day.

You will receive confirmation statements reflecting the transactions below:

T. Rowe Price Mutual Fund Accounts (including program and non-program funds)—Funding requests are processed by liquidating the shares you have identified at the applicable net asset value (“NAV”). The proceeds from the liquidation are transferred to your program account and invested according to your recommended model portfolio. Generally, the funding process is completed in 2-3 business days.

T. Rowe Price Brokerage or Brokerage IRA Account—Funding requests are processed by transferring the securities you have identified to your program account. On the following business day, these securities are liquidated via market orders or the for equity securities or the applicable trade date and NAV for mutual funds. The proceeds from the liquidation are invested according to your recommended model portfolio. If you select mutual funds that are also recommended in your program account, we’ll transfer the shares in-kind and rebalance according to the recommended model portfolio. Depending on your assigned Summit Program tier, mutual funds that are also recommended in your program account may be converted to a lower cost share class, to the extent available, which will add up to 7 business days before a rebalance can occur. 

Generally, the funding process is completed in 4-5 business days.

We won’t charge a commission or fee when we sell your securities in your program account. However, for brokerage holdings, there may be other fees or costs, such as back-end loads, depending on the security or fund family you select to fund your new account.

You can open as many accounts as you want as long as each meets the $50,000 required minimum investment.

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Move money from non-T. Rowe Price account(s):

• Transfer from a bank account(s) — To transfer money from your bank account(s), you must first log in to your program account and add your bank information.
• Transfer from another financial institution — Complete a brokerage transfer form (after your securities have been liquidated) and send us the signed and completed form with an attached statement.
• Rollover from a former employer-sponsored plan(s) — Contact your former employer’s plan provider to request a distribution.

Learn more about rollovers or transfers or call 1-800-366-5910 for assistance.

Move money from existing T. Rowe Price account(s):

You can move cash or T. Rowe Price mutual funds held in a T. Rowe Price Mutual Fund Account and cash from existing T. Rowe Price Brokerage account into your program account. If you would like to use securities in a T. Rowe Price Brokerage account, you will either need to liquidate those securities in your Brokerage account and use the proceeds or call to request shares be transferred in-kind.

To the extent that you move less than $100 into your program account, we hold the cash in your account and then invest according to your recommended model portfolio after you meet or exceed this amount.

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If you withdraw money from your account, we will sell a portion of your holdings corresponding to the amount of cash you request.  Once those funds are available, we will distribute them based on your request:

• Send a check to your address of record — A check mailed via first class USPS service from our clearing firm, Pershing LLC, a BNY Mellon Company (“Pershing”).
• Send the money to your bank on file with us — An electronic funds transfer to send a deposit to your bank on file.
• Move the money to another account at T. Rowe Price — A wire or check to send money directly to another T. Rowe Price account.

Under normal circumstances, TRP Advisory Services will process and execute withdrawal requests on the same business day for requests that are received in good order by 1 p.m. eastern time (ET) on a day that the New York Stock Exchange (NYSE) is open for business ("business day").  Under normal circumstances, TRP Advisory Services will use its best efforts to process and execute withdrawal requests on the same business day for requests that are received in good order between 1 p.m. and 3 p.m. on the business day.   Withdrawal requests received after 3 p.m. ET on a given business day will be processed the next business day.

Full account closeout requests received in good order by 1 p.m. ET on a given business day will generally be processed and executed two or more business days after the request is made; however, depending on the nature and timing of the request, certain full closeouts may take longer to fully process.

During severe market declines, the U.S. equity markets may halt trading and the NYSE may close early (i.e., prior to 4:00 p.m. ET). If the NYSE closes early before 1 p.m. ET, TRP Advisory Services will use its best efforts to process and execute withdrawal requests on the same business day for requests that are received in good order on the given business day prior to the early market close.  If the NYSE closes early after 1 p.m. but before 3 p.m. ET, TRP Advisory Services will use its best efforts to process and execute withdrawal requests on the same business day for requests that are received in good order on the given business day prior to the early market close.  If the NYSE closes early after 3 p.m. ET on a given business day, withdrawal requests received after 3 p.m. ET will be processed the next business day.

If the NYSE closes early before 1 p.m. ET, full account closeout requests received in good order prior to the early market close on a given business day will generally be processed and executed two or more business days after the request is made; however, depending on the nature and timing of the request, certain full closeouts may take longer to fully process.

Existing bank information will not automatically link to your program account. You can link or add new bank accounts in your profile.

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If linking a bank account that is not on file with us, you’ll be prompted to complete a bank verification process so you can use that bank for adding and withdrawing money from your program account.

There are no additional advisory fees or commissions for this program. You pay the expenses of the underlying T. Rowe Price funds in your account—which are the same expenses that all fund shareholders pay. The total expense ratios for the T. Rowe Price ActivePlus Portfolios program range from 0.42% to 0.77%.*

You may also incur certain processing fees, such as wire transfer or express mail delivery fees.

You pay no additional expenses for the T. Rowe Price ActivePlus Portfolios program beyond the costs of the mutual funds underlying each portfolio. Because each underlying fund has an expense ratio, the weighting of each fund impacts the total expenses associated with a portfolio.

The expense ratios for the T. Rowe Price ActivePlus Portfolios are calculated as-of the latest quarter end by multiplying the target weight of each fund in the portfolio by the expense ratio as of the most recent fiscal year-end for that fund. The sum of the weighted fund expenses is displayed as the expense ratio for that portfolio.

T. Rowe Price does not charge fees when you withdraw money or close your account. You may incur third-party processing or account transfer fees. Check the Brokerage Account Agreement, Fee Schedule and Important Disclosures for details.

Your withdrawal may be subject to taxes if you take the proceeds as a distribution. In general, distributions from a Traditional or Rollover IRA are taxable in the year you receive them. If you are under the age of 59½, you may be subject to a 10% early withdrawal penalty as well.

For a Roth IRA, a qualified distribution is generally not a taxable event. If you receive a distribution from your Roth IRA that is not a qualified distribution, part of it may be taxable. If you are under the age of 59½, you may be subject to a 10% early withdrawal penalty.

T. Rowe Price does not provide tax advice. Please consult a tax or legal professional for more information.

Rebalancing is the act of realigning your account to the target asset allocation of your assigned model portfolio.

Our investment professionals generally rebalance based on account drift—when an asset class or investment goes above or below its target allocation by a predefined amount.

Our investment professionals may also choose to rebalance at any time or change their rebalancing methodology. Keep in mind that regular additions or withdrawals may lengthen or shorten the time between rebalancing.

Only certain T. Rowe Price mutual funds are available in this program. Our investment professionals determine which of our funds to include in the program and in each model portfolio—as well as their relative weighting in each portfolio—to balance expectations of returns against the volatility of different asset classes.

In constructing portfolios, our objective is not to remove risk but to limit longer-term volatility that can result from disproportionate concentrations in one or two asset classes. Accordingly, we assembled a variety of T. Rowe Price funds into diversified model portfolios that can achieve an appropriate return over time for a given level of risk.

Check out our program methodology for details about how we determine recommendations, design and manage model portfolios, and more.

Yes, the value of your account will fluctuate daily and is subject to market gains and losses. The model portfolios in the program are comprised of mutual funds, which are subject to market risk and possible loss of principal. T. Rowe Price does not guarantee the results of our investment management or that the objectives of the funds or the model portfolios will be met.

No, T. Rowe Price investment professionals take care of the day-to-day investment and trading decisions in your account. That’s one of the benefits of this program.

Yes, we believe reinvesting dividends and capital gains is an important component of a sound long-term investment approach, allowing your money to compound and grow.

We use the Investor Class. If your account becomes eligible for investment in a lower-cost share class (based on your investment amount at initial account funding or, upon our periodic review, your continuing investment amount), we will transfer the assets in your account to a model portfolio with an identical asset allocation comprising lower-cost share classes of all of the same underlying T. Rowe Price funds, to the extent available.  In addition, if you qualify for a lower-cost share class based on your continuing investment amount between our periodic reviews, you may request transfer of the assets in your account to a model portfolio with an identical asset allocation comprising lower-cost share classes of all of the same underlying T. Rowe Price funds, to the extent available. 

If your account becomes ineligible for investment in a lower-cost share class based upon our periodic review of your continuing investment amount, we will periodically transfer the assets in your account back to a model portfolio with an identical asset allocation comprising higher-cost share classes of all of the same underlying T. Rowe Price funds. 

For share class eligibility determinations, we will take into account the assets held in your ActivePlus Portfolios account and the aggregate value of your directly held qualifying accounts and certain other accounts held by direct investors in your household as provided by the T. Rowe Price Summit Program (Summit Program). The Summit Program is a tiered benefit program offered by T. Rowe Price®. Assignment to a benefit tier is based on the amount of assets in qualifying investment accounts and other accounts that you or members of your Summit Program household have with T. Rowe Price. View the Summit Program FAQs to learn more, including: account types automatically qualified for the Summit Program; other types of accounts you may authorize to be measured within the program; how Summit Program households are determined and how this impacts your benefit tier; the information that may be disclosed to members of Summit Program households and their agents; and, how you may opt out of certain householding features.

Clients may request a review of their accounts at any time to see if they qualify for lower-cost I Class shares in their ActivePlus Portfolios account by calling 1-855-787-9140.

Our model portfolios have been designed by our investment professionals and represent the best asset allocation approach for each model. Cash is included as an asset class when appropriate.

Yes, we’ve built in that flexibility. You may request to restrict up to three T. Rowe Price mutual funds from your program account.** Log in to learn more about our policy or request an investment restriction for your account.

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Yes. In fact, we rely on you to keep your profile up to date. This helps ensure that your investments are aligned with the corresponding model portfolio.

Please update your profile if the following factors change:

• Your risk tolerance or time horizon
• Life events (employment status, beneficiaries, email or mailing address, etc.)
• Investment restrictions**

Important: You’ll need to update your time horizon each year to reflect the passage of time. 

Annually—We’ll check in to find out if there are any changes to your risk tolerance and time horizon or restrictions in your portfolio that you need to review or update.** Depending on the changes, we may recommend a different model portfolio for your account. Keep in mind:

• Unless you update the information you initially provided in our online questionnaire, we’ll assume your time horizon, risk tolerance, and restrictions haven’t changed.
• We will not change the asset allocation strategy for your account unless you update your answers to the online questionnaire. For example: If you indicate a 20-year time horizon and do not update that information the following year, we’ll maintain your account in the assigned model portfolio to be consistent with a 20-year time horizon. So, even though your time horizon may change with the ordinary passage of time, we will not adjust your time horizon or the assigned model portfolio used to manage your account year over year unless you update your time horizon.

Ongoing—In addition to the annual check-in, we’ll contact you with other timely information regarding your account and market events.

Yes, your account information is always at your fingertips. Log in to view your questionnaire answers.

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It’s easy to stay connected 24/7. Log in to view your T. Rowe Price ActivePlus Portfolios account information, including balance, account value, and how your portfolio breaks down by asset class and investment type.

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Yes. Our clearing firm, Pershing LLC, will notify you regarding shareholder communications and proxy statements.

Yes, you can access the following program documents right here:

T. Rowe Price Advisory Services Client Agreement and ActivePlus Portfolios^® Supplement
T. Rowe Price Advisory Services, Inc., Form ADV
Brokerage Account Agreement, Fee Schedule, and Important Disclosures
T. Rowe Price Traditional and Roth IRA Disclosure Statement and Custodial Agreement

Yes. You can add or update systematic deposits for this program. Log in to your account and select “Automatic Transactions” in the ActivePlus Portfolios menu.

You can close your program account at any time. There are two options:

• You can ask for your holdings to be liquidated and the proceeds sent to you in the form of a check.
  
• You can request that your eligible holdings be transferred to another, non-program account. 
  

Keep in mind:

• When you close your program account, your Brokerage account is also closed. If you opt to have your ActivePlus Portfolio assets transferred to a "like-registered" non-program account at T. Rowe Price, they will be held in a non-Brokerage account.
• There are no termination fees to close your account. If you transfer your account to another financial institution, account transfer charges may apply.
  

If you have questions or need assistance, call us at 1-855-787-9140.

Call us at 1-855-787-9140. We can help you roll over from a former employer-sponsored plan, transfer assets in an IRA(s) from another financial institution, or move assets in an IRA(s) currently held at T. Rowe Price.

There are some transactions involving your ActivePlus Portfolios account that cannot be conducted online and need to be conducted with the assistance of an associate by telephone. These transactions generally involve the transfer of assets between an ActivePlus Portfolios account and an account held at another T. Rowe Price Advisory Services’ affiliate, and Roth IRA conversions. These transactions primarily include:

• Transfers between non-identically registered ActivePlus Portfolios accounts and accounts held at other T. Rowe Price Advisory Services’ affiliates
  
• Contributions from a T. Rowe Price mutual fund account to an ActivePlus Portfolios account
  
• Requests for expedited delivery of a check from an ActivePlus Portfolios account
  
• Roth IRA conversions

If you have questions or need assistance, call us at 1-855-787-9140.

To account for market fluctuations, redemption maximums are imposed for dollar amounts and determined by individual funds. In volatile market conditions, the permitted maximum dollar amount may allow you to enter a redemption amount that is more than the account's day-end balance; if this occurs, your transaction will fail and not be executed. ActivePlus Portfolio accounts require a minimum balance of $10,000 to remain in the service. If your redemption request would result in your ActivePlus Portfolios account balance dropping below $10,000, the transaction cannot be executed. As an alternative, you may choose to “Sell all investments & close account”. Please note that this selection will result in your account being closed.

It’s important to review your portfolio each year to make sure it’s still aligned with your goals and needs. Your Annual Check-In is an opportunity to let us know if you have any changes to your risk tolerance and time horizon, or to review or update restrictions in your portfolio.** Depending on your changes, we may recommend a new model portfolio for your account.

We’ll assume your time horizon, risk tolerance, and investment restrictions haven’t changed. That means we won’t make any changes to your model portfolio unless you update your online questionnaire.

Keep in mind: Your time horizon may change with the ordinary passage of time. However, we will not adjust your time horizon or assigned model portfolio year after year unless you update your questionnaire answers.

ActivePlus Portfolios requires that you check in and update your questionnaire. Please update the questionnaire at least annually. If you do not update your questionnaire for an extended period, your account may be removed from the ActivePlus Portfolios program.

Yes, you can make changes to your account at any time by revising your answers to your online questionnaire and/or updating your investment restrictions.

You may have pending changes to your account. Once your changes have been processed, you’ll be able to review and update your questionnaire answers and investment restrictions.

Yes, our Financial Advisors can guide you through your Annual Check-In over the phone. Simply call 1-855-787-9140 Monday through Friday between 8 a.m. and 8 p.m. ET.

Yes, you can contact a representative at 1-855-787-9140 weekdays between 8 a.m. and 8 p.m. ET.

Financial Advisors are licensed professionals and trained to help you with a range of needs, including:

• Provide a point of contact to facilitate account funding
  
• Answer questions about your portfolio activity
  
• Assist with certain transactions
• Help you navigate the website