T. Rowe Price Retirement 2040 Fund
Figures last verified October 31, 2026
Actively managed target-date fund of T. Rowe funds, de-risking toward 2040 with a comparatively equity-heavy glide path.
T. Rowe's Retirement series is the strongest brand in *active* target-date funds, common in 401(k) menus, and it has two genuine distinctions: a more aggressive glide path that holds more stocks later than rivals (a defensible response to longevity risk), and underlying active funds from a deep research shop. Its long-term results against active TDF peers are very good.
Against the index target-date series, though, the fee gap is the whole story: roughly 0.59% versus 0.08–0.12% means this fund starts every year half a percent behind Vanguard, Schwab, and Fidelity Index equivalents, compounding over a forty-year accumulation into a five-figure difference on an ordinary balance. The aggressive glide path can be replicated for free by just picking a later-dated index fund. If TRRDX is your plan's only target-date option, it's far from a disaster — but if an index series sits next to it on the menu, the math has a clear favorite.
401(k) participants whose plan offers this series — with a fee caveat.
TRRDX alternatives & comparable funds
If you’re weighing TRRDX against the field, these are the funds most investors line it up against — same job, different provider, slightly different terms.
| Fund | Family | Expense Ratio | Minimum |
|---|---|---|---|
| TRRDX — T. Rowe Price Retirement 2040 Fund | T. Rowe Price | 0.59% | $2,500 |
| VFORX — Vanguard Target Retirement 2040 Fund | Vanguard | 0.08% | $1,000 |
| FBIFX — Fidelity Freedom Index 2040 Fund | Fidelity | 0.12% | $0 |
| SWYGX — Schwab Target 2040 Index Fund | Schwab | 0.08% | $1 |
Frequently asked questions
What is the expense ratio of TRRDX?
TRRDX (T. Rowe Price Retirement 2040 Fund) has an expense ratio of 0.59%, which works out to roughly $59 per year for every $10,000 invested. That is high relative to index alternatives, and it compounds against you every year, so the fund needs to outperform just to break even versus a cheaper option.
What is the minimum investment for TRRDX?
TRRDX requires a minimum initial investment of $2,500.
What does TRRDX invest in?
Actively managed target-date fund of T. Rowe funds, de-risking toward 2040 with a comparatively equity-heavy glide path. It falls in the target-date category and is a target-date fund.
What are good alternatives to TRRDX?
The funds most often compared with TRRDX are VFORX, FBIFX, SWYGX — broadly similar exposure from different providers, with small differences in fee, minimum, and portability that usually come down to which brokerage holds your account.
Expense ratio and minimum for TRRDX drawn from T. Rowe Price fund documentation; last verified October 31, 2026. Figures change — confirm against the official prospectus before investing. This review is editorial opinion, not investment advice.