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Rollover IRA

For job changers or anyone nearing retirement, a Rollover IRA can be a flexible transition strategy for their retirement plan assets.

Features and benefits

  • Keep retirement plan assets potentially growing tax deferred
  • Avoid penalties for early distributions from employer-sponsored retirement plans
  • Penalty-free early distributions prior to age 59½ for certain purposes, including:
    • first-time home purchase expenses ($10,000 lifetime limit)
    • qualified higher education expenses
    • certain medical expenses in excess of 7.5% of adjusted gross income 
    • certain unemployment expenses
    • death and disability
  • Can subsequently roll over into new employer’s plan if permitted
  • Expand investment options
  • Can consolidate retirement accounts with ease for greater control
  • Available to job changers who have assets in a qualified retirement plan
  • Available to individuals who are retiring and have assets in a qualified retirement plan
  • Available to participants in terminating qualified retirement plans

Key MFS® advantages

  • More than 80 mutual funds to choose from, including risk/reward based asset allocation funds and target date funds based on asset allocation strategies
  • Global asset management expertise of MFS
  • Account and fund information access via the Internet and telephone
  • Customer service representatives available from 8 a.m. to 7 p.m. ET, Monday through Friday

Contribution limits

  • Up to 100% of the distributions from the qualified plan
  • May be opened as a direct rollover or distribution check may be payable to participant and then deposited into the Rollover IRA
  • If distribution is payable to participant, no more than 60 days may elapse between the distribution and the investment into the Rollover IRA

There are advantages and disadvantages to an IRA rollover depending on investment options, services, fees and expenses, withdrawal options, required minimum distributions, tax treatment and your unique financial needs and retirement goals.  Please be aware that rolling over retirement assets into one IRA account could potentially increase fees as the underlying funds may be subject to sales loads, higher management fees, 12b-1 fees, and IRA account fees such as custodial fees. For assistance in determining if a rollover to an IRA is appropriate for you, consult your investment professional.

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.