Financial Advisor / United States Investor / United States Other MFS Sites
home login register proxy voting careers contact us help

529 Savings Plans

MFS 529 Savings Plan was designed to offer you and your clients more investment choice, pricing options, and quality service. Plus, you get the global asset management expertise of MFS Investment Management.

Investment options
Flexible pricing options
High contribution level, low minimum initial investment
Gifting and estate planning features
Easy to open and maintain
Benefit for Oregon taxpayers

Investment options
With an MFS 529 Savings Plan, your clients have a variety of investment options plus three investment paths to take.

1. Age-based investment option
When you select the age-based investment approach, you do not have to worry about switching to a more conservative portfolio as the child approaches college age. It is automatically done for you. This option transfers your assets among four investment options that invest in MFS asset allocation funds that are designed to take into account the approximate number of years before your beneficiary starts college. Then, during the child’s college years, the assets are placed in a conservative bond fund. You will notice that the younger the child, the more aggressive the portfolio. That is because generally they have more time to ride out volatile markets. The principal value of the fund options are not guaranteed at any time. The assets will be exchanged automatically to an investment option which invests in a more conservative MFS Asset Allocation Fund as the designated beneficiary gets older. The funds' objectives and investment strategies change from one age-based model to another.

Age-based investment option

2. Built-in allocation approach
Offers you an easy way to follow a disciplined diversification investment approach by allowing you to choose the investment option that invests in the MFS Asset Allocation Fund appropriate for you. These built-in allocation strategies automatically allocate, diversify, and rebalance.

3. Customized approach
Design a portfolio from a diversified list of investment options that each invest in one of 18 MFS mutual funds.

U.S. and international stock funds
Bond funds
Money market fund
MFS Asset Allocation Funds

Funds are listed relative to one another within the MFS funds and are not meant to be compared with other portfolios or other types of investments. The three major factors taken into account when listing the portfolios from less aggressive to more aggressive are historical volatility, types of securities in the fund, and diversification permitted within the fund. See the prospectus for detailed explanations and each fund’s objective, policies, strategies, permitted investments, and risks. The investments you choose should correspond to your clients' financial needs, goals, and risk tolerance. Diversification does not guarantee a profit or protect against a loss.

Back to top

Flexible pricing
Choice of three share classes: 529A, 529B, 529C

Commission
Fee structure Class 529A: 2.50%-5.75%
Fee structure Class 529B: 4%
Fee structure Class 529C: 1%

See our pricing sheet in Related Links for more pricing information.

Back to top

High contribution level, low minimum initial investment
  • $250 minimum for initial investment
  • there is no minimum for additional contributions
  • accepts contributions until account balance reaches $310,000 per beneficiary

$25 annual account fee; waived for accounts with assets of $25,000 or more, as well as for Oregon residents.

Back to top

Gifting and estate planning features
1. As much as $14,000 ($28,000 for married couples) can be contributed each year without gift-tax consequences as of 2013.
2. Under a special election, up to $70,000 ($140,000 for married couples) can be contributed at one time by accelerating five years’ worth of contributions (as gifts) as of 2013. This feature makes it an attractive estate planning tool for many. Account owner will not incur federal gift taxes as long as he/she does not make any additional gifts to the same designated beneficiary for four years after the year during which he/she makes the one-time gift. In order to do this, the account owner must make an election on a federal gift tax return for the year of the contribution. However, if the account owner elected to treat the gifts as having been made over a five-year period and dies before the end of the five-year period, the portion of the contribution allocable to the remaining years in the five-year period would be includable in computing the account owner’s gross estate for federal estate tax purposes. Your client should see a tax advisor for more information regarding the gift and estate tax consequences of opening an account.

Back to top

Easy to open and maintain
Once the process is completed, you’ll find that maintaining the account is seamless.
  • Track daily pricing online by fund symbol.
  • Access account information, balances, and transactions online via MFS Access
  • Call the dedicated MFS 529 hotline for investment professionals, 1-866-MFS-PLAN (1-866-637-7526) .
  • Tell clients to call the MFS 529 Savings Plan shareholder hotline, 1-866-529-1637 with any account questions .

Back to top

Benefit for Oregon taxpayers
Oregon taxpayers are eligible for a state tax deduction from Oregon taxable income for contributions to the MFS 529 Savings Plan . For tax year 2013, single contributors qualify for a $2,225 state tax deduction and couples married filing jointly qualify for a $4,455 state tax deduction when they contribute to the MFS 529 Savings Plan. These deduction limits will be adjusted for inflation by the Oregon Department of Revenue. For more informationclick here. Note: website only shows JOINT deduction limit.

Oregon law also provides a four-year carry forward state for 2013 tax deduction up. For example, for 2013 if an account owner who is married and filing jointly contributes $20,000, he or she may take a $4,455 state tax deduction that year and carry forward the remaining $15,545 for deduction over the next four years. Oregon state tax deductions taken for contributions to the Plan are subject to recapture under certain circumstances. These deduction limits will be adjusted for inflation by the Oregon Department of Revenues. For more information, click here.

About the MFS 529 Savings Plan
The MFS 529 Savings Plan is a flexible college investing plan sponsored by the state of Oregon, acting by and through the Oregon 529 College Savings Board and is part of the Oregon 529 College Savings Network. MFS Fund Distributors, Inc. is the Program Manager. MFS 529 Savings Plan accounts are considered municipal fund securities.

Depending on your state of residence and the state of residence of the beneficiary, an investment in the MFS 529 Savings Plan may not afford you or your beneficiary state tax benefits or other benefits only available for investments in such state's qualified tuition program. See your tax advisor to be sure you understand the tax issues related to a 529 plan. Withdrawals of earnings not used to pay for qualified higher education expenses are subject to an additional 10% federal tax penalty. State taxes may also apply.

There is a $25 annual account fee associated with the MFS 529 Savings Plan. This annual fee is waived for Oregon residents and for those accounts with assets of $25,000 or more. Investments in 529 plans involve investment risks. You should consider your clients financial needs, goals, and risk tolerance prior to investing.

Before investing in the MFS 529 Savings Plan, consider the investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, as well as a Participant Agreement and Disclosure Statement and Expense Supplement, contact MFS or view online at mfs.com. Read it carefully.

MFS does not provide legal, tax, or accounting advice. Individuals should not use or rely upon the information provided herein without first consulting with their tax or legal professional about their particular circumstances. Any statement contained in this communication (or elsewhere on this web site) concerning U.S. tax matters was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. This communication was written to support the promotion or marketing of the transaction(s) or matter(s) addressed.

18319.6

18319.6