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									                                                               Roadmap to retirement:
                                                               12 IRA planning mistakes to avoid

                                                               Richard Ziperman
                                                               Regional Director

                                                               10/07/2009

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.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE


MFS Fund Distributors, Inc., 500 Boylston Street, Boston, MA 02116
                                                                                                           06/09
                                                                                                         13436.1
MFS Investment Management®   12 IRA planning mistakes to avoid




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MFS Investment Management®               12 IRA planning mistakes to avoid

   Make the most of IRA savings




                    Individual Retirement Account



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MFS Investment Management®                          12 IRA planning mistakes to avoid

   Make the most of IRA savings

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
           • How a “Stretch IRA” works
                 – Primary beneficiary (spouse) is named
                 – IRA owner takes RMD only
                 – After owner’s death, spouse rolls assets into new IRA,
                   naming next-generation beneficiary
                 – Surviving spouse takes RMD only
                 – Assets may pay out over many years




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MFS Investment Management®                          12 IRA planning mistakes to avoid

   Make the most of IRA savings

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
     2. Not naming or updating IRA beneficiaries
           • Commonly made mistakes
                 – Missing forms             – Outdated beneficiaries
                 – Blank designations        – Inconsistent with estate plan
                 – No contingent beneficiary
           • Times to review designations




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MFS Investment Management®                       12 IRA planning mistakes to avoid

   Make the most of IRA savings

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
     2. Not naming or updating IRA beneficiaries
     3. Making inappropriate spousal rollovers
           • Consider not rolling IRA assets if a surviving spouse
                – is older than 70½ and the deceased spouse was not
                – is under age 59½ and needs income
                – plans to disclaim IRA assets




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MFS Investment Management®                 12 IRA planning mistakes to avoid

   Make the most of IRA savings

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
     2. Not naming or updating IRA beneficiaries
     3. Making inappropriate spousal rollovers
     4. Beneficiaries not taking advantage of IRD rules




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MFS Investment Management®                 12 IRA planning mistakes to avoid

   Make the most of IRA savings

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
     2. Not naming or updating IRA beneficiaries
     3. Making inappropriate spousal rollovers
     4. Beneficiaries not taking advantage of IRD rules
     5. Rolling low-cost-basis company stock into an IRA




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MFS Investment Management®                 12 IRA planning mistakes to avoid

   Make the most of IRA savings

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
     2. Not naming or updating IRA beneficiaries
     3. Making inappropriate spousal rollovers
     4. Beneficiaries not taking advantage of IRD rules
     5. Rolling low-cost-basis company stock into an IRA
     6. Not taking advantage of a Roth IRA




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MFS Investment Management®                        12 IRA planning mistakes to avoid

   Make the most of IRA savings

     7. Not taking advantage of increased contribution limits
           • New annual contribution limits
               – $5,000 per individual for 2009
           • Catch-up contributions
               – $1,000 per individual age 50 or older in 2008 and 2009




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MFS Investment Management®                 12 IRA planning mistakes to avoid

   Make the most of IRA savings

     7. Not taking advantage of increased contribution limits
     8. Assuming a nonworking spouse cannot contribute




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MFS Investment Management®                     12 IRA planning mistakes to avoid

   Make the most of IRA savings

     7. Not taking advantage of increased contribution limits
     8. Assuming a nonworking spouse cannot contribute
     9. Missing important dates
           • 9 months
                 – Disclaim deadline
                 – Estate taxes due
           • 9/30: Beneficiaries determined
           • 9/30: Multiple beneficiary payout determined
           • 12/31: RMD deadline



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MFS Investment Management®                      12 IRA planning mistakes to avoid

   Make the most of IRA savings

     7.   Not taking advantage of increased contribution limits
     8.   Assuming a nonworking spouse cannot contribute
     9.   Missing important dates
    10.   Taking the wrong RMD
           • Tips to avoid the 50% penalty
                – Asset consolidation
                – Recalculation upon reaching age 70½




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MFS Investment Management®                   12 IRA planning mistakes to avoid

   Make the most of IRA savings

     7.   Not taking advantage of increased contribution limits
     8.   Assuming a nonworking spouse cannot contribute
     9.   Missing important dates
    10.   Taking the wrong RMD
    11.   Placing the title of an IRA into a trust




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MFS Investment Management®                   12 IRA planning mistakes to avoid

   Make the most of IRA savings

     7.   Not taking advantage of increased contribution limits
     8.   Assuming a nonworking spouse cannot contribute
     9.   Missing important dates
    10.   Taking the wrong RMD
    11.   Placing the title of an IRA into a trust
    12.   Paying unnecessary penalties on early IRA
          distributions (pre-age 59½)




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MFS Investment Management®                 12 IRA planning mistakes to avoid

   The 12 mistakes to avoid

     1. Not taking advantage of the stretch distribution option
        or not establishing it properly
     2. Not naming or updating IRA beneficiaries
     3. Making inappropriate spousal rollovers
     4. Beneficiaries not taking advantage of IRD rules
     5. Rolling low-cost-basis company stock into an IRA
     6. Not taking advantage of a Roth IRA




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MFS Investment Management®                   12 IRA planning mistakes to avoid

   The 12 mistakes to avoid

     7.   Not taking advantage of increased contribution limits
     8.   Assuming a nonworking spouse cannot contribute
     9.   Missing important dates
    10.   Taking the wrong RMD
    11.   Placing the title of an IRA into a trust
    12.   Paying unnecessary penalties on early IRA
          distributions (pre-age 59½)




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MFS Investment Management®   12 IRA planning mistakes to avoid




Stay on course on the
road to retirement




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MFS Investment Management®                 12 IRA planning mistakes to avoid


                       STEP 1: Talk to your financial advisor
                               or tax advisor today.
                       STEP 2: Put your retirement savings
                               plan into action.
                       STEP 3: Make the most of your IRA.




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Roadmap to retirement:
12 IRA planning mistakes to avoid
Thank you.

								
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