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Required Minimum Distributions

Find the most efficient way to take retirement income and your required minimum distributions (RMDs) from your IRA accounts.

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

Your Investment Professional can help you understand RMD requirements, calculate RMDs, and set up a flexible income plan for retirement.

When you need to draw on your IRAs for RMDs or income, you'll find the following two flexible options. 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.

Once an individual reaches age 70½ the rules for both employer retirement plans and IRAs require the periodic withdrawal of certain minimum amounts.  However, if the individual is still working at 70½, and does not own 5% or more of the business, they are generally not required to make a required minimum distribution from a current employer plan.

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.

The investments you choose should correspond to your financial needs, goals, and risk tolerance. For assistance in determining your financial situation, please consult an investment professional.