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Required Minimum Distributions

Help clients understand required minimum distributions (RMDs) for their traditional and rollover IRAs and calculate RMDs.

Plan for RMDs
Your clients will need to plan to take RMDs from their traditional or rollover IRA accounts when they reach age 70½. If they don’t take their RMDs, the IRS may assess a 50% penalty on the amount they should have taken.

When your clients need to draw on their IRAs for RMDs or income, you can help them select and set up one of the following distribution options to fit their specific needs. Please note that distributions from an IRA are subject to income taxes, and any distribution taken prior to age 59½ may be subject to a 10% early withdrawal penalty.

  • Partial withdrawals. Withdraw any amount from the IRA account at any time.
  • Systematic Withdrawal Plans. Structure regular, automatic withdrawals from the IRA account; choose the amount and frequency to meet retirement income needs.

MFS does not provide legal, tax or accounting advice. Any statement contained in this communication (including any attachments) 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. Clients of MFS should obtain their own independent tax and legal advice based on their particular circumstances.

Keep in mind that all investments, including mutual funds, carry a certain amount of risk including the possible loss of the principal amount invested.

You should recommend products based on your client's financial needs, goals, and risk tolerance.

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