MFS® SIMPLE IRA Employee Resource Guide
MFS® SIMPLE IRA Plan
Everything you need to open an account INSTRUCTIONS
Step 1. Complete the MFS® SIMPLE IRA Application (Form A).
Step 2. Make all checks payable to “MFS Heritage Trust Company.”
For SIMPLE IRA Transfers Send the transfer form (Form B) along with your application to MFS®.
For Rollovers If you are rolling over assets from another SIMPLE IRA, Traditional IRA, or Employer Sponsored Retirement Plan within 60 days, mark “Rollover check attached”in Section 3 of the application and send the application with your check to MFS.
Be sure to keep the MFS SIMPLE IRA Disclosure Statement, the Form 5305-S SIMPLE Individual Retirement Trust Account, and a copy of your application for your records.
The mailing addresses for all forms and checks are Regular mail Overnight mail MFS Service Center, Inc. MFS Service Center, Inc. P.O. Box 219341 Suite 219341 Kansas City, MO 64121-9341 430 W 7th Street Kansas City, MO 64105-1407 If you have any questions about this form, please contact the MFS Retirement Plan Service Department at 1-800-637-1255 any business day. FORM A MFS® SIMPLE IRA APPLICATION
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. You must provide the following information for each person listed on the account: name, date of birth, Social Security number or taxpayer identification number, and residential address (a P.O. Box is not acceptable). We also may ask to see your driver’s license or other identifying documents. In the event that MFSC, on behalf of the fund, is unable to verify the identity of investors, MFSC and the fund reserve the right to take additional steps up to and including closing the account if required by applicable law.
1. Investor Information The MFS Family of Funds® is generally only available to U.S. residents classified as U.S. Persons for federal tax purposes. A U.S. Person is a citizen or resident alien of the United States. Both the residential address and mailing address provided must be a U.S. address.
FIRST NAME MI LAST NAME
- - / / I AM A MINOR SOCIAL SECURITY NUMBER DATE OF BIRTH (MM/DD/YYYY) (Parent or Guardian must sign this form)
TELEPHONE NUMBER
STREET ADDRESS REQUIRED (NO P.O. BOXES)
CITY STATE ZIP CODE
MAILING ADDRESS
CITY STATE ZIP CODE
2. Employer Information
COMPANY NAME
EXISTING PLAN AT MFS? YES NO IF YES, PROVIDE THE EXISTING PLAN NUMBER. EXISTING PLAN NUMBER
PLAN MAILING ADDRESS
CITY STATE ZIP CODE
PHONE NUMBER CONTACT NAME
page 1 of 5 FORM A
3. Select Your Investments Please see the MFS Family of Funds list for MFS fund numbers. Initial minimum investment is $25 per fund. The enclosed contributions are for tax year .
Rollover check attached (Within 60 days of your receipt from another SIMPLE IRA, a traditional IRA, or an Employer Sponsored Retirement Plan)
Note: Internal Revenue Service rules allow only one IRA-to-IRA rollover in any twelve-month time period, regardless of the number of IRAs an individual has or the types of IRAs (including traditional, Roth, SEP, and SIMPLE IRAs). Exceeding this limit, even if the prior rollover involved a different type of IRA, will result in an excess contribution to your IRA subject to taxation and penalties. Roth conversions (rollovers from traditional IRAs to Roth IRAs), rollovers between qualified plans and IRAs, and trustee-to-trustee transfers (direct transfers of assets from one IRA trustee to another) are not subject to the one-per-year limit and are disregarded in applying the limit to other rollovers. You may want to consult with your tax advisor before making a rollover.
FUND NUMBER PERCENTAGE (%) OR SALARY REDUCTION ($) EMPLOYER CONTRIBUTION ($)
PERCENTAGE TOTAL (Percentages must total 100%.) A $25 trustee fee will be assessed annually. The fee will be waived for accounts with a balance that exceeds $50,000 on the day such fee is assessed.
Page 2 of 5 FORM A
4. Dealer Information MFS cannot accept an account application without all of the dealer information completed. This includes the signature of an authorized person from the firm. If you are aware of additional accounts that may qualify for linking under MFS’ ROA policy, please notify us. We authorize MFS Service Center, Inc. to act as our agent in connection with transactions under the authorization form and agree to notify the distributor of any purchase made under the Letter of Intent or Right of Accumulation. We guarantee the investors’ signatures and certify that we have verified the identity of the investors.
REGISTERED REPRESENTATIVE’S FIRST NAME MI LAST NAME
FIRM NAME FIRM NUMBER
BRANCH STREET ADDRESS
CITY STATE ZIP CODE
BRANCH NUMBER REGISTERED REPRESENTATIVE’S NUMBER
REGISTERED REPRESENTATIVE’S PHONE NUMBER REGISTERED REPRESENTATIVE’S EMAIL ADDRESS
BROKERAGE ACCOUNT NUMBER (IF APPLICABLE) MATRIX LEVEL
AUTHORIZED SIGNER OF BROKER/DEALER FIRM (REQUIRED)
page 3 of 5 FORM A
5. Beneficiary Information If you have additional primary or secondary beneficiaries, attach a separate list and indicate percentage.
Primary Beneficiaries
1. BENEFICIARY’S NAME
- - RELATIONSHIP: / / SPOUSE OTHER DATE OF BIRTH/TRUST (MM/DD/YYYY) SOCIAL SECURITY NUMBER PERCENTAGE (%)
2. BENEFICIARY’S NAME
- - RELATIONSHIP: / / SPOUSE OTHER DATE OF BIRTH/TRUST (MM/DD/YYYY) SOCIAL SECURITY NUMBER PERCENTAGE (%)
3. BENEFICIARY’S NAME
- - RELATIONSHIP: / / SPOUSE OTHER DATE OF BIRTH/TRUST (MM/DD/YYYY) SOCIAL SECURITY NUMBER PERCENTAGE (%)
TOTAL (MUST ADD
UP TO 100%)
Secondary Beneficiaries (if the primary beneficiary/ies should fail to survive me)
1. BENEFICIARY’S NAME
- - RELATIONSHIP: / / SPOUSE OTHER DATE OF BIRTH/TRUST (MM/DD/YYYY) SOCIAL SECURITY NUMBER PERCENTAGE (%)
2. BENEFICIARY’S NAME
- - RELATIONSHIP: / / SPOUSE OTHER DATE OF BIRTH/TRUST (MM/DD/YYYY) SOCIAL SECURITY NUMBER PERCENTAGE (%)
3. BENEFICIARY’S NAME
- - RELATIONSHIP: / / SPOUSE OTHER DATE OF BIRTH/TRUST (MM/DD/YYYY) SOCIAL SECURITY NUMBER PERCENTAGE (%)
TOTAL (MUST ADD
UP TO 100%) Page 4 of 5 FORM A
6. Trustee Acceptance MFS® Heritage Trust CompanySM shall serve as Trustee under this FORM 5305-S SIMPLE Individual Retirement Trust Account only: (1) for the MFS Family of Funds, (2) in accordance with the terms and conditions of the Trust Agreement, and (3) provided that the required forms are properly completed and received by MFSC. The Trustee’s acceptance of your SIMPLE IRA will be acknowledged by written confirmation from MFS of your initial purchase. This confirmation will reference your account “MFS Heritage Trust Company as Trustee for [your name] SIMPLE IRA.”
7. Investor Signature I hereby establish an MFS SIMPLE IRA Trust, appoint MFS Heritage Trust Company as Trustee, and: (1) acknowledge that I have received and read the current prospectus(es) for the funds chosen in Section 3 and the appropriate MFS SIMPLE IRA Disclosure Statement and Form 5305-S SIMPLE Individual Retirement Trust Account and (2) certify that, under penalty of perjury, my Social Security number shown on page 1 is correct. I understand that MFSC may use information provided on this application to verify the identity of investors. In the event that MFSC, on behalf of the fund, is unable to verify the identity of investors, MFSC and the fund reserve the right to take additional steps, up to and including closing the account, if required by applicable law.
INVESTOR’S SIGNATURE DATE (MM/DD/YYYY) (OR SIGNATURE OF PARENT OR GUARDIAN, IF INVESTOR IS A MINOR)
PRINT NAME
SIGNATURE OF SPOUSE DATE (MM/DD/YYYY) (ONLY REQUIRED IN COMMUNITY PROPERTY STATES, WHEN DESIGNATED BENEFICIARY IS NOT YOUR SPOUSE)
PRINT NAME
WITNESS TO SIGNATURE DATE (MM/DD/YYYY) TESTAMENTARY DISPOSITIONS REQUIRED TO BE WITNESSED IN SOME JURISDICTIONS
PRINT NAME
page 5 of 5 FORM B MFS® SIMPLE IRA TRANSFER FORM Use this form to transfer your existing SIMPLE, SEP/SARSEP, Traditional IRA, or IRA Rollover with your current trustee to an MFS SIMPLE IRA account. If you do not have a SIMPLE IRA with MFS, please complete and attach an MFS SIMPLE Application (Form A). 1. Investor Information
FIRST NAME MI LAST NAME
- -
SOCIAL SECURITY NUMBER
REGISTERED REPRESENTATIVE’S NAME REGISTERED REPRESENTATIVE’S PHONE NUMBER
2. Type of SIMPLE IRA Transfer Complete “A” for a transfer to your new MFS SIMPLE IRA. Complete “B” only if you are transferring contributions being made to your SIMPLE IRA at your designated financial institution (DFI). A. Transfer from a SIMPLE IRA currently invested or deposited in (choose one):
MFS Funds FUND NUMBERS: SEE THE MFS FAMILY OF FUNDS® LISTING AT THE BACK OF THIS BOOK.
CDs NAME OF INSTITUTION DATE OF MATURITY* (MM/DD/YYYY)
Non-MFS Investment NAME OF INSTITUTION
ACCOUNT NUMBER(S) CONTACT NAME (IF ANY)
NAME OF RESIGNING TRUSTEE/CUSTODIAN PHONE NUMBER
MAILING ADDRESS OF RESIGNING TRUSTEE/CUSTODIAN
CITY STATE ZIP CODE *Paperwork should be received no more than two weeks prior to CD maturity date.
B. I will be transferring contributions on a periodic basis from the designated financial institution (DFI).
To DFI: Please transfer to my MFS SIMPLE IRA, on a periodic basis, the contributions made to the account described
above in accordance with IRC Sec. 403(p)(7).
page 1 of 3 FORM B
3. Transmittal Instructions Important: Please select either “Transfer in kind” or “Liquidate.” Contact the resigning trustee or custodian for their requirements before completing this section. To resigning trustee/custodian
Transfer in kind. I also wish to transfer my non-MFS Money Market SIMPLE IRA I am requesting a transfer of shares from the firm indicated in Section 2 to MFS. from a brokerage firm or bank To resigning trustee/custodian: If this box is checked, please SIMPLE IRA presently invested in the liquidate any non-MFS money market shares and send to the MFS MFS fund(s) as indicated in Section 2. address below.
All OR Part ($ ) of the account described in Section 2 to my MFS IRA
Proceed to Section 4 unless the box requesting to transfer a non-MFS Money Market SIMPLE IRA to MFS was checked.
Liquidate
All OR Part ($ ) of the account described in Section 2 to my MFS IRA Immediately OR At maturity
Send assets as follows
Mail check Make check payable to “MFS Heritage Trust Company Trustee” for SIMPLE IRA NAME
Regular mail Overnight mail MFS Service Center, Inc. MFS Service Center, Inc. P.O. Box 219341 Suite 219341 Kansas City, MO 64121-9341 430 W 7th Street Kansas City, MO 64105-1407
Wire funds State Street Bank and Trust Co. Boston, MA 02101 ABA #011000028 Credit MFS DDA Number 99034795
For further credit to SIMPLE IRA for NAME
page 2 of 3 FORM B
4. Investment Instructions Choose one.
Open a new account (Complete and attach Form A, upon which you may indicate your investment instructions,
leaving the fields below blank.)
Invest in my existing MFS IRA(s) as follows (also indicate any additional MFS fund choices below). Percentages must
total 100%.
FUND NUMBER PERCENTAGE (%) FUND NUMBER PERCENTAGE (%) FUND NUMBER PERCENTAGE (%)
5. Authorization to Transfer Important: Contact the Trustee or Custodian of the IRA you are transferring to see if a signature guarantee or other documentation is required to proceed. Space is provided below for a signature guarantee, if required.
Please transfer my SIMPLE Individual Retirement Account (IRA) as described in Section 2, in accordance with the above instructions, to my MFS SIMPLE IRA.
INVESTOR’S SIGNATURE DATE (MM/DD/YYYY)
PRINT NAME
Signature guaranteed by:
NAME OF FIRM
SIGNATURE OF AUTHORIZED PERSON
6. Trustee Acceptance (for MFS use only)
MFS® Heritage Trust CompanySM is willing to accept the assets described above and credit them to the MFS Fund Distributors, Inc. SIMPLE Individual Retirement Trust Account for which it is trustee. MFS Heritage Trust Company agrees to the redemption and transfer from fiduciary to fiduciary as authorized above.
AUTHORIZED MFS SIGNATURE ON BEHALF OF MFS HERITAGE TRUST COMPANY DATE (MM/DD/YYYY)
page 3 of 3
Form 5305-S SIMPLE Individual Retirement Trust Account Do not file (Rev. April 2017) with the Internal (Under section 408(p) of the Internal Revenue Code) Department of the Treasury Revenue Service Internal Revenue Service Name of participant Date of birth of participant Account number
Address of participant Check if transfer SIMPLE IRA . a Check if amendment .... a Name of trustee Address or principal place of business of trustee MFS® Heritage Trust CompanySM c/o MFS Service Center, Inc., P.O. Box 219341, Kansas City, MO 64121-9341
The participant named above is establishing a savings incentive match plan for employees of small employers individual retirement account (SIMPLE IRA) under sections 408(a) and 408(p) to provide for his or her retirement and for the support of his or her beneficiaries after death. The trustee named above has given the participant the disclosure statement required by Regulations section 1.408-6. The participant and the trustee make the following agreement. Article I The trustee will accept cash contributions made on behalf of the participant by the participant’s employer under the terms of a SIMPLE IRA plan described in section 408(p). In addition, the trustee will accept transfers or rollovers from other SIMPLE IRAs of the participant and, after the 2-year period of participation defined in section 72(t)(6), transfers or rollovers from any eligible retirement plan (as defined in section 402(c)(8)(B)) other than a Roth IRA or a designated Roth account. No other contributions will be accepted by the trustee. Article II The participant’s interest in the balance in the trust account is nonforfeitable. Article III 1. No part of the trust account funds may be invested in life insurance contracts, nor may the assets of the trust account be commingled with other property except in a common trust fund or common investment fund (within the meaning of section 408(a)(5)). 2. No part of the trust account funds may be invested in collectibles (within the meaning of section 408(m)) except as otherwise permitted by section 408(m)(3), which provides an exception for certain gold, silver, and platinum coins, coins issued under the laws of any state, and certain bullion. Article IV 1. Notwithstanding any provision of this agreement to the contrary, the distribution of the participant’s interest in the trust account shall be made in accordance with the following requirements and shall otherwise comply with section 408(a)(6) and the regulations thereunder, the provisions of which are herein incorporated by reference. 2. The participant’s entire interest in the trust account must be, or begin to be, distributed not later than the participant’s required beginning date, April 1 following the calendar year in which the participant reaches age 701/2. By that date, the participant may elect, in a manner acceptable to the trustee, to have the balance in the trust account distributed in: (a) A single sum or (b) Payments over a period not longer than the life of the participant or the joint lives of the participant and his or her designated beneficiary. 3. If the participant dies before his or her entire interest is distributed to him or her, the remaining interest will be distributed as follows. (a) If the participant dies on or after the required beginning date and: (i) The designated beneficiary is the participant’s surviving spouse, the remaining interest will be distributed over the surviving spouse’s life expectancy as determined each year until such spouse’s death, or over the period in paragraph (a)(iii) below if longer. Any interest remaining after the spouse’s death will be distributed over such spouse’s remaining life expectancy as determined in the year of the spouse’s death and reduced by 1 for each subsequent year, or, if distributions are being made over the period in paragraph (a)(iii) below, over such period. (ii) The designated beneficiary is not the participant’s surviving spouse, the remaining interest will be distributed over the beneficiary’s remaining life expectancy as determined in the year following the death of the participant and reduced by 1 for each subsequent year, or over the period in paragraph (a)(iii) below if longer. (iii) There is no designated beneficiary, the remaining interest will be distributed over the remaining life expectancy of the participant as determined in the year of the participant’s death and reduced by 1 for each subsequent year. (b) If the participant dies before the required beginning date, the remaining interest will be distributed in accordance with paragraph (i) below or, if elected or there is no designated beneficiary, in accordance with paragraph (ii) below. (i) The remaining interest will be distributed in accordance with paragraphs (a)(i) and (a)(ii) above (but not over the period in paragraph (a)(iii), even if longer), starting by the end of the calendar year following the year of the participant’s death. If, however, the designated beneficiary is the participant’s surviving spouse, then this distribution is not required to begin before the end of the calendar year in which the participant would have reached age 701/2. But, in such case, if the participant’s surviving spouse dies before distributions are required to begin, then the remaining interest will be distributed in accordance with paragraph (a)(ii) above (but not over the period in paragraph (a)(iii), even if longer), over such spouse’s designated beneficiary’s life expectancy, or in accordance with paragraph (ii) below if there is no such designated beneficiary. (ii) The remaining interest will be distributed by the end of the calendar year containing the fifth anniversary of the participant’s death. 4. If the participant dies before his or her entire interest has been distributed and if the designated beneficiary is not the participant’s surviving spouse, no additional contributions may be accepted in the account. 5. The minimum amount that must be distributed each year, beginning with the year containing the participant’s required beginning date, is known as the “required minimum distribution” and is determined as follows.
(a) The required minimum distribution under paragraph 2(b) for any year, beginning with the year the participant reaches age 701/2, is the participant’s account value at the close of business on December 31 of the preceding year divided by the distribution period in the uniform Cat. No. 23699N Form 5305-S (Rev. 4-2017) Form 5305-S (Rev. 4-2017) Page 2 Form 5305-S SIMPLE Individual Retirement Trust Account Do not file lifetime table in Regulations section 1.401(a)(9)-9. However, if the participant’s designated beneficiary is his or her surviving spouse, the required (Rev. April 2017) with the Internal minimum distribution for a year shall not be(Under more than section the participant’s 408(p) accountof the Internalvalue at the Revenue close of business Code) on December 31 of theRevenue preceding Service yearDepartment divided of by the the Treasury number in the joint and last survivor table in Regulations section 1.401(a)(9)-9. The required minimum distribution for a year underInternal this Revenue paragraph Service (a) is determined using the participant’s (or, if applicable, the participant and spouse’s) attained age (or ages) in the year. Name of participant Date of birth of participant Account number (b) The required minimum distribution under paragraphs 3(a) and 3(b)(i) for a year, beginning with the year following the year of the participant’s death (or the year the participant would have reached age 701/2, if applicable under paragraph 3(b)(i)) is the account value at the closeAddress of business of participant on December 31 of the preceding year divided by the life expectancy (in the single life tableCheck in Regulations if transfer SIMPLE section IRA . a 1.401(a)(9)-9) of the individual specified in such paragraphs 3(a) and 3(b)(i). Check if amendment .... a 1 Name(c) ofThe trustee required minimum distribution for the year the Addressparticipant or reachesprincipal age place 70 of/2 business can be made of trustee as late as April 1 of the following year. The required minimum distribution for any other year must be made by the end of such year. 6. The owner of two or more IRAs (other than Roth IRAs) may satisfy the minimum distribution requirements described above by taking from one IRA the amount required to satisfy the requirement for another in accordance with the regulations under section 408(a)(6). The participant named above is establishing a savings incentive matchArticle plan forV employees of small employers individual retirement account (SIMPLE IRA) under sections 408(a) and 408(p) to provide for his or her retirement and for the support of his or her beneficiaries after death. 1. The participant agrees to provide the trustee with all information necessary to prepare any reports required by sections 408(i) and 408(l)(2) andThe Regulations trustee named sections above 1.408-5 has given and 1.408-6.the participant the disclosure statement required by Regulations section 1.408-6. 2.The The participant trustee agrees and the to submittrustee tomake the theInternal following Revenue agreement. Service (IRS) and participant the reports prescribed by the IRS. 3. The trustee also agrees to provide the participant’s employer the summary description described in section 408(l)(2) unless this SIMPLE IRA is a transfer SIMPLE IRA. Article I The trustee will accept cash contributions made on behalf of the participant by the participant’s employer under the terms of a SIMPLE IRA plan described in section 408(p). In addition, the trustee will accept transfersArticle or rollovers VI from other SIMPLE IRAs of the participant and, after the 2-year periodNotwithstanding of participation any definedother articles in section which 72(t)(6), may be transfers added oror incorporated,rollovers from the any provisions eligible retirement of Articles plan I through (as defined III and in this section senten 402(c)(8)(B))ce will be other than a controlling.Roth IRA or Any a designated additional Rotharticles account. inconsistent No other with contributions sections 408(a) will andbe accepted 408(p) and by the the related trustee. regulations will be invalid. ArticleArticle VII II ThisThe agreementparticipant’s will interest be amended in the balance as necessary in the totrust comply account with is the nonforfeitable. provisions of the Code and the related regulations. Other amendments may be made with the consent of the persons whose signatures appear below. Article III 1. No part of the trust account funds may be invested in life insuranceArticleArticle contracts, VIIIVIII nor may the assets of the trust account be commingled with otherArticle property VIII may except be used in a for common any additional trust fund provisions. or common If no investment other provisions fund (within will be the added, meaning draw of asection line through 408(a)(5)). this space. If provisions are 1. Communications to Trustee. All notices, requests, directions, instructions and other communications to or from the Trustee shall be made by such added,2. No they part must of the comply trust account with applicable funds may requirements be invested of in state collectibles law and (within the Internal the meaning Revenue of Codesection and 408(m)) may not except imply as that otherwise they hav peermitted been reviewed by or methodpre-approvedsection as408(m)(3), the byTrustee the which IRS. may provides from time an toexception time prescribe for certain or permit gold, which silver, methods and platinum include coins, in writing, coins telephonicallyissued under orthe electronica laws of anylly, state, to the and extent certain such methodbullion. is in accordance with applicable law. The Trustee shall be entitled to rely on any such communication believed by it to be genuine or properly given and shall have no duty of inquiry with respect to any of the matters stated therein or the consequences to the Participant or Beneficiary thereof, and shall be fully protected in acting or omitting to take any action in reliance upon anyArticle such communication. IV 1. Notwithstanding any provision of this agreement to the contrary, the distribution of the participant’s interest in the trust account shall be 2.made Voting. in accordance MFS Fund Shares with the held following in the SIMPLErequirements IRA Account and shall shall otherwise be voted comply by, or within accordance section 408(a)(6) with the and instructions the regulations of, the Participantthereunder, or the Beneficiary. Theprovisions Trustee of shall which deliver, are herein or cause incorporated to be delivered, by reference. to the Par ticipant or to the Beneficiary if the Beneficiary is then receiving benefits under Article IV, all notices,2. The financial participant’s statements, entire interest prospectuses, in the trust contracts, account proxies must and be, proxy or begin materials to be, relatingdistributed to the not MFS later Fund than Sharesthe participant’s in the SIMP reLEquired IRA beginningAccount. The Trusteedate, April shall 1 votefollowing MFS theFund calendar Shares year held in in which the SIMPLE the participant IRA Accou reachesnt in accordance age 701/2 .with By thatproper date, voting the participantinstructions mayfrom elect, the Parti in acipant manner or Beneficiary. AbsentParticipant’sacceptable such toinstructions signaturethe trustee, the to Trustee have the is herebybalance directed in the trust to and account shall vote distributed such MFS in: Fund Shares for or againstDate any proposition in the same proportion as all MFS Fund Shares of the relevant MFS Fund for which instructions have been received. (a) A single sum or (If an individual other than the participant signs this form for the participant, indicate the individual’s relationship to the participant.) 3. Powers(b) Payments of Trustee. over Subject a period to Article not longer IX, and than except the life as of otherwise the participant limited orunder the thejoint terms lives of thisthe participantAgreement, and the hisTrustee or her shall designa haveted the beneficiary. power and authorityTrustee’s3. If the in participantsignaturethe administration dies before of the his SIMPLE or her entireIRA Account interest to is do distributed all acts, to to execute him or her,and thedeliver remaining all instruments interestDate andwill beto exercidistribuseted for asthe follows. sole benefit of the Participant(a) If the and participant his Beneficiary dies on any or andafter all the powers required which beginning would be date lawful and: were it in its own right the actual owner of the property held, including by way of illustration,Witness’(i) Thesignature but designatednot in limitation beneficiary of the powers is the participant’sconferred by survivinglaw, the following: spouse, the remaining interest will be distributedDate over the surviving spouse’s life expectancy as determined each year until such spouse’s death, or over the period in paragraph (a)(iii) below if longer. Any interest remaining (a) To sell or exchange (Useany onlypart ifof signature the assets of the of participantthe SIMPLE or the IRA trustee Account; is required to be witnessed.) after the spouse’s death will be distributed over such spouse’s remaining life expectancy as determined in the year of the spouse’s death and Generalreduced(b) To registerby 1Instructions for anyeach asset subsequent held by theyear, Trustee or, if distributions in its ownContributions name, are beingor into nominee madeIndividual over or Retirement bearerthe period form in that paragraph will pass (a)(iii) Specificby delivery; below, over Instructions such period. (ii) The designated beneficiary is not the participant’sArrangements surviving (IRAs); spouse, Pub. the590-B, remaining interest will be distributed over the beneficiary’s Section references are to the Internal Article IV. Distributions made under this remaining(c) To consent life expectancy to or participate as determined in dissolutions, in the yearreorganization, Distributionsfollowing the mergers, fromdeath Individual ofsales, the participanttransfers Retirement or and other reduced changes by in1 securitiesfor each subsequent held by the year,Trustee, or over and in such Revenue Code unless otherwise noted. article may be made in a single sum, periodic theconnection period in paragraphto delegate (a)(iii) the Trustee’s below if longer.powers and toArrangements pay assessments, (IRAs); subscriptions, and Pub 560, and other charges; Retirement Plans for Small Business (SEP, payment, or a combination of both. The Purpose(iii) There of Form is no designated beneficiary, the remaining interest will be distributed over the remaining life expectancy of the participant as (d) To make distributions from the SIMPLE IRA AccountSIMPLE, in cash and orQualified in kind pursuantPlans). to the provisions of thedistribution Agreement; option and should be reviewed in the Formdetermined 5305-S in is the a model year of trust the accountparticipant’s death and reduced by 1 for each subsequent year. year the participant reaches age 701/2 to agreement(e)(b) To If invest the that participant andmeets reinvest the dies requirements all before or a part the ofof required the contributions beginningDefinitions made date, to the the remaining SIMPLE IRAinterest Account will be and distributed dividends,ensure in capital accordance that gain the distribut requirements with paragions raphor ofany section(i) otherbelow or, if sectionselectedincome or408(a) thereon there and is in no 408(p). MFS designated Fund However, Shares beneficiary, only (including in accordance fractionalParticipant. shares with The paragraphcarried participant to the(ii) below.third is the decimal person place) and to408(a)(6) retain such have Shares been met.without any duty of Articles I through VII have been reviewed by further(i) diversification.The remaining interest will be distributed inwho accordance establishes with the paragraphs trust account. (a)(i) and (a)(ii) above (butArticle not overVIII. theArticle period VIII andin paragraph any that follow(a)(iii), it the IRS. A SIMPLE individual retirement even if longer), starting by the end of the calendar year followingThe the trustee year mustof the be participant’s a bank or death. If, however,may incorporate the desig additionalnated beneficiary provisions is that are account (SIMPLE IRA) is established after the Trustee. 4.the Compensation participant’s andsurviving Expenses. spouse, The then Trustee this distribution shall receivesavings is suchnot and required compensation loan association, to begin for before its as services defined the end hereunder in of the calendar asagreed may yearbe to agreed by in thewhic uponparticipanth the from participant time and totrustee time by to the form is fully executed by both the individual Trustee and the Participant or1 by2 the Trustee and the sectionBeneficiar 408(n),y of the or Participantany person if who the Beneficiaryhas the is thencomplete receiving the benefit agreement.s under Article They mayIV. The include, (participant)would have andreached the trustee. age 70 This/ . But, account in such case, if the participant’s surviving spouse dies before distributions are required to begin, then the remaining interest will be distributed in accordance withapproval paragraph of the (a)(ii)IRS to above act as (but trustee. not over the period infor paragraph example, (a)(iii definitions,), even ifinvestment longer), over powers, such Applicationmust be created contains in the a statement United States of the for Trustee’s the compensation. MFS Fund Distributors, Inc. is hereby delegated the power to agree to such compensation onspouse’s behalf ofdesignated the Participant beneficiary’s or Beneficiary, life expectancy, provided thator in afteraccordance at least 30 with days’ paragraph notice to (ii) the below Participant if there or is Beneficiary novoting such rights, designated of anyexculpatory increase beneficiary. in provisions, compensation, no exclusive benefit of the participant and his or Transfer SIMPLE IRA amendment and termination, removal of the objection(ii) shall The haveremaining been interestmade thereto. will be Anydistributed compensation by the endof the of Trustee,the calendar and anyyear expenses, containing liabilities the fifth or anniversary other charges of the incurre participant’d by thes Trusteedeath. in the her beneficiaries. This SIMPLE IRA is a “transfer SIMPLE IRA” trustee, trustee’s fees, state law administrationDo4. Ifnot the file participant Form of the 5305-S SIMPLE dies beforewith IRA the Accounthis IRS. or her shall entire be interestpaidif it from is nothas the thebeen SIMPLE original distributed IRA recipient Account and of if theunless designated paid by thebeneficiary Participant.requirements, is not In addition, thebeginning participant’s the date Trustee of surviving distributions, may, upon suchInstead,spouse, terms keepno and additional it conditionswith your contributions records.(including withoutmay be limitationacceptedcontributions receipt in the ofaccount. such under documentation) any SIMPLE as IRA the plan. Trustee deemsaccepting necessary, only agree cash, to treatmentpay directly of from excess the SIMPLEFor5. The more IRA minimum information Account amount certain on SIMPLE that advisory must IRAs, orbe other distributed similar eachThe fees summary year,at the beginning direction description of with the requirements theParticipant year containing or ofBeneficiary, the participant’scontributions, or his or herrequired des prohibitedignee. beginning transactions date, is with the includingknown as the the required “required disclosures minimum distribution”the trustee and issection determined 408(l)(2) as follows.do not apply to transfer participant, etc. Attach additional pages if 5. Resignation and Removal. The Trustee may resign at any time upon notice to MFS Fund Distributors, Inc. and may be removed by MFS Fund must give the participant, see Pub. 590-A, SIMPLE IRAs. necessary. 1 Distributors,(a) The Inc.required at any minimum time upon distribution notice to the under Trustee. paragraph Any such 2(b) noticefor any of year, resignation beginning or removal with the shall year take the participanteffect on the reaches date specified age 70 /therein,2, is the which shall participant’s account value at the close of business on December 31 of the preceding year divided by the distribution period in the uniform Form 5305-S (Rev. 4-2017) Cat. No. 23699N Form 5305-S (Rev. 4-2017) Form 5305-S (Rev. 4-2017) Page 32 Form 5305-S SIMPLE Individual Retirement Trust Account Do not file lifetime table in Regulations section 1.401(a)(9)-9. However, if the participant’s designated beneficiary is his or her surviving spouse, the required not(Rev. be April less 2017) than 30 days after the delivery thereof, unless such notice shall be waived by the party entitled to the notice. Upon such resignationwith the orInternal removal, MFSminimum Fund distribution Distributors, for Inc. a year shall shall appoint not abe successor(Under more than section trustee, the participant’s which 408(p) successor ofaccount the shall Internal value be aat “bank” the Revenue close (as ofdefined businessCode) in Codeon December Section 40 318(n)) of theorRevenue such preceding other Service person yearDepartment divided of bythe theTreasury number in the joint and last survivor table in Regulations section 1.401(a)(9)-9. The required minimum distribution for a year who has demonstrated to the satisfaction of the Commissioner of Internal Revenue that he will administer the trust in a manner consistent with the law. In underInternal this Revenue paragraph Service (a) is determined using the participant’s (or, if applicable, the participant and spouse’s) attained age (or ages) in the year. theName event of participantthat MFS Fund Distributors, Inc. exercises this powerDate, theof birth Participant of participant or Beneficiary, if such BeneficiaryAccount is thennumber receiving benefits under Article IV, shall (b)be Thedeemed required to have minimum consented distribution to such underchange paragraphs of Trustee 3(a) if no and objection 3(b)(i) foris received a year, beginning by MFS Fund with Distributors,the year following Inc. within the year30 days of t heafter the Participant participant’s death (or the year the participant would have reached age 701/2, if applicable under paragraph 3(b)(i)) is the account value at the or Beneficiary receives notice of the change. If within 30 days after the Trustee’s resignation or removal MFS Fund Distributors, Inc. has not appointed a closeAddress of business of participant on December 31 of the preceding year divided by the life expectancy (in the single life tableCheck in Regulations if transfer SIMPLE section IRA . a successor1.401(a)(9)-9) trustee of the that individual has accepted specified such in appointment, such paragraphs the Trustee 3(a) and may 3(b)(i). apply to a court of competent jurisdiction for appointment of a successor trustee. Check if amendment .... a Upon receipt by the Trustee of acceptance of appointment by the successor trustee, the1 Trustee shall transfer and pay over to such successor the assets of Name(c) of The trustee required minimum distribution for the year theAddress participant or principalreaches ageplace 70 of/ 2business can be made of trustee as late as April 1 of the following year. The therequired SIMPLE minimum IRA Account distribution and all for records any other pertaining year must thereto. be made The Trusteeby the end is authorized, of such year. however, to reserve such sum of money as it may deem advisable for payment of all its fees, compensation, costs and expenses, or for payment of any other liabilities constituting a charge on or against the assets of the 6. The owner of two or more IRAs (other than Roth IRAs) may satisfy the minimum distribution requirements described above by taking from SIMPLEone IRA theIRA amount Account required or on or toagainst satisfy the the Trustee. requirement Any balance for another remaining in accordance after payment with the of such regulations items shall under be section paid over 408(a)(6). to the su ccessor trustee. The successor trustee shall thereafter be deemed to be the Trustee under this Agreement. The participant named above is establishing a savings incentive matchArticle plan for V employees of small employers individual retirement account 6.(SIMPLE Failure IRA)to Consent. under sections If the Participant 408(a) and or Beneficiary408(p) to provide does fornot hisconsent or her to retirement an appoin tmentand for of thea successor support of trustee, his or hera change beneficiar in theies Trustee’s after death. compens ation, 1. The participant agrees to provide the trustee with all information necessary to prepare any reports required by sections 408(i) and 408(l)(2) orand anThe Regulations amendment trustee named sections to this above Agreement 1.408-5 has given and made 1.408-6.the orparticipant agreed to the by MFSdisclosure Fund statementDistributors, required Inc., this by Agreement Regulations shall section be deemed 1.408-6. amended by the Participant or Beneficiary, with the result that MFS Fund Distributors, Inc. shall cease to be the sponsor of this Agreement. Further, the Trustee shall notify the Participant 2.The The participant trustee agrees and the to trusteesubmit maketo the theInternal following Revenue agreement. Service (IRS) and participant the reports prescribed by the IRS. or Beneficiary as soon as possible following such objection of its resignation as trustee of this SIMPLE IRA Account as of the thirtieth day following the date of 3.such The notice. trustee If withinalso agrees thirty (30) to provide days from the theparticipant’s date of suc employerh notice thethe Participantsummary description or Beneficiary described fails to in appoint section a 408(l)(2)new trustee unless or take this other SIMPLE appropriate IRA is a transfer SIMPLE IRA. Article I action with respect to the SIMPLE IRA Account, the Participant or Beneficiary directs the Trustee to distribute all assets held under the SIMPLE IRA The trustee will accept cash contributions made on behalf of the participant by the participant’s employer under the terms of a SIMPLE IRA plan Accountdescribed in ain lumpsection sum 408(p). as soon In addition,as administratively the trustee reasonable will accept after transfers theArticle close or rollovers of saidVI thirty from day other period. SIMPLE IRAs of the participant and, after the 2-year periodNotwithstanding of participation any definedother articles in section which 72(t)(6), may be transfers added or incorporated,rollovers Articlefrom theany provisions IXeligible retirement of Articles plan I through (as defined III and in thissection senten 402(c)(8)(B))ce will be other than a controlling.Roth IRA or Any a designated additional Rotharticles account. inconsistent No other with contributions sections 408(a) will andbe accepted 408(p) and by the the related trustee. regulations will be invalid. 1. Cash Contributions. The Trustee shall apply each cash contribution to the IRA Account to the purchase of MFS Fund Shares (including fractional shares carried to the third decimal place) in accordance with the Participant’s instructions.ArticleArticle VII II ThisThe participant’sagreement will interest be amended in the balance as necessary in the trustto comply account with is thenonforfeitable. provisions of the Code and the related regulations. Other amendments may 2.be Contributions made with the in consentProperty. of The the Trustee persons shall whose not signaturesaccept contributions appear below. in property other than cash or MFS Fund Shares. If MFS Funds Shares are contributed, the Trustee will, if so instructed by the Participant and if acceptableArticle to III the Trustee, hold such assets in the IRA account. The Trustee shall invest1. No the part proceeds of the trustfrom accountsuch liquidation, funds may after be deduction invested forin life all expensesinsuranceArticle andcontracts, charges, VIII nor including may the fees assets of theof the Trustee, trust accountincurred bein effectingcommingled such with liquidation, inother accordanceArticle property VIII may with except be the used provisionsin a forcommon any of additional Paragraph trust fund provisions. or1 of common this Article If no investment other IX. A provisionsrollover fund contribution(within will be the added, meaning to the draw IRA of accountasection line through consisting408(a)(5)). this ofspace. MFS IFundf provisions Shares are shall be receivedadded,2. No they partvia a mustof transfer the comply trust in-kind account with contribution applicable funds may andrequirements be such invested assets of in willstate collectibles be law held and in (within thethe IRAInternal the account. meaning Revenue of Codesection and 408(m)) may not except imply as that otherwise they hav permittede been reviewed by or pre-approvedsection 408(m)(3), by the which IRS. provides an exception for certain gold, silver, and platinum coins, coins issued under the laws of any state, and certain 3.bullion. Dividends and Other Payments. Dividends, capital gain distributions and any other cash payments attributable to MFS Fund Shares held in the SIMPLE IRA Account shall be invested in the same shares to which such payments are attributable unless the Participant otherwise directs. If dividend or capital gain distributions are payable in MFS Fund Shares or cash, at the optionArticle of the holder, IV the Trustee shall elect payment in full and fractional shares. 1. Notwithstanding any provision of this agreement to the contrary, the distribution of the participant’s interest in the trust account shall be 4.made Change in accordance in Investment. with The the Participantfollowing requirements may direct the and Trustee shall otherwiseat any time comply and from with time section to time: 408(a)(6) (i) to exchange and the regulations the MFS Fund thereu Sharesnder, heldthe in the SIMPLEprovisions IRA of Account which are for herein other MFSincorporated Fund Shares by reference. in accordance with the then current prospectuses relating to such shares; and (ii) to liquidate any investments then held in the SIMPLE IRA Account and invest the net proceeds in any form of investment permitted under this Article IX. 2. The participant’s entire interest in the trust account must be, or begin to be, distributed not later than the participant’s required beginning 5.date, Incomplete April 1 following or Unclear the Instructions calendar year. If at in any which time the the participant IRA Account reaches holds cashage 70 for1/2 which. By thatinvestment date, the instructions participant have may not elect, been in received,a manner or if the Trustee acceptable to the trustee, to have the balance in the trust account distributed in: receivesParticipant’s instructions signature with respect to the selection or allocation of investments that are in the Trustee’s opinionDate incomplete or unclear, the Trustee may request(a) otherA single instructions sum or from the(If participantan individual (or other beneficiary, than the participant if applicable). signs Pendingthis form forreceipt the participant, of such instructions, indicate the individual’ssuch uninvested relationship cash to may the participant.) remain uninvested(b) Payments pending over receipt a period of proper not longerinstructions, than the be investedlife of the in participant money market or the MFS joint Fund lives Shares,of the participant or be returned and histo the or herparticip designaant orted beneficiary; beneficiary. any investedTrustee’s3. If the assets participantsignature may remain dies before in the hismost or recenther entire properly interest selected is distributed investment. to him The or Trustee her, the shall remaining not be interestliableDate for will any be loss distribu resultteding as from follows. delay in investing assets(a) or If implementingthe participant instructions dies on or pursuantafter the torequired this Paragraph. beginning Further, date and: if the participant fails to provide instructions satisfactory to the Trustee regarding theWitness’ investment(i) The signature designated of proceeds beneficiary that the IRA is theAccount participant’s receives surviving in the event spouse, an MFS the Fundremaining in which interest the participant’s will be distributedDate IRA Account over the is inv survivingested is spouse’s liquidated life and there is no successor fund (a “Liquidation”), then the participant hereby directs that the proceeds of the Liquidation be invested in an MFS Fund that is expectancy as determined(Use each only year if signature until such of the spouse’s participant death, or the or trustee over isthe required period to in be paragraph witnessed.) (a)(iii) below if longer. Any interest remaining aafter money the marketspouse’s fund death or, ifwill no besuch distributed money market over such fund spouse’sexists at theremaining relevant life time, expectancy in the MFS as Fund determined that is thein the shortest year ofduration the spou bondse’s fund death in and existenceGeneralreduced by at 1that Instructionsfor time. each subsequent year, or, if distributionsContributions are being to madeIndividual over Retirementthe period in paragraph (a)(iii)Specific below, over Instructions such period. (ii) The designated beneficiary is not the participant’sArrangements surviving (IRAs); spouse, Pub. the 590-B, remaining interest will be distributed over the beneficiary’s Section references are to the Internal Article IV. Distributions made under this remaining life expectancy as determined in the year followingDistributions the fromdeath ArticleIndividual of the participant X Retirement and reduced by 1 for each subsequent year, or over Revenue Code unless otherwise noted. Arrangements (IRAs); and Pub 560, article may be made in a single sum, periodic 1.the Amendment. period in paragraph This Agreement (a)(iii) below may ifbe longer. amended by the Trustee and by the Participant, or by the Trustee and the Beneficiary of the Participant if such Purpose of Form Retirement Plans for Small Business (SEP, payment, or a combination of both. The Beneficiary(iii) There is then is noreceiving designated benefits beneficiary, under Article the remaining IV.SIMPLE, In addit ion,interest and the Qualified Participant will be distributedPlans). hereby delegatesover the remaining to MFS Funddistribution life expectancyDistributors, option of Inc. should the the partic power be ipantreviewed to amendas in the this AgreementFormdetermined 5305-S on in is behalfthe a modelyear of ofthe trust the Participant participant’saccount or Beneficiary. death and reducedMFS Fund by Distributors, 1 for each subsequentInc. shall notify year. the Participantyear or Beneficiary the participant of any reaches such amendment. age 701/2 to The Participantagreement(b) If the orthat Beneficiaryparticipant meets the dies shallrequirements before be deemed the ofrequired to have beginning consentedDefinitions date, to any the such remaining amendment interest if he will or be she distributed fails to objectensure in accordance thereto that the within requirementswith 30 parag calendarraph of days (i)section below from or, the if sections 408(a) and 408(p). However, only 408(a)(6) have been met. dateelected such or notice there is sent.no designated beneficiary, in accordanceParticipant. with Theparagraph participant (ii) below. is the person Articles I through VII have been reviewed by (i) The remaining interest will be distributed in whoaccordance establishes with the paragraphs trust account. (a)(i) and (a)(ii) above (butArticle not over VIII. theArticle period VIII inand paragraph any that (a)(iii),follow it the IRS. A SIMPLE individual retirement 2.even Termination. if longer), Thisstarting Agreement by the end shall of terminate the calendar upon year the followingcompleteThe thedistribution trustee year ofmust theof thebe participant’s aassets bank heldor death. in the If, SIMPLE however,may IRAincorporate the Account desig natedadditional or in thebeneficiary event provisions tha ist a that are account (SIMPLE IRA) is established after the Trustee. determinationthe participant’s is made surviving by the spouse, Internal then Revenue this distribution Servicesavings that is notthe and requiredSIMPLE loan association, toIRA begin Account before as does defined the not end qualifyin of the as calendar anagreed individual year to by inretirement whicthe participanth the account participant and within trustee the to form is fully executed by both the individual 1 section 408(n), or any person who has the complete the agreement. They may include, meaning(participant)would have of Code reachedand theSection trustee.age 70408(a). /This2. But, Inaccount the in suchevent case, the SIMPLE if the participant’s IRA Account surviving is terminated, spouse the dies balance before in distributions the SIMPLE areIRA required Account to shall begin, be distributedthen the to the remaining interest will be distributed in accordance withapproval paragraph of the (a)(ii)IRS toabove act as (but trustee. not over the period infor paragraph example, (a)(iii definitions,), even if investment longer), over powers, such Participantmust be created or to the in theBeneficiary, United States as the for case the may be. spouse’s designated beneficiary’s life expectancy, or in accordance with paragraph (ii) below if there is novoting such rights,designated exculpatory beneficiary. provisions, exclusive benefit of the participant and his or Transfer SIMPLE IRA amendment and termination, removal of the (ii) The remaining interest will be distributed by the end of the calendarArticle year XI containing the fifth anniversary of the participant’s death. her beneficiaries. This SIMPLE IRA is a “transfer SIMPLE IRA” trustee, trustee’s fees, state law 1. DoAnnual4. If not the Accounting. fileparticipant Form 5305-S diesThe Trustee beforewith the his and/or IRS. or her its entire nominee interestif shall it is has notsend beenthe to originalthe distributed Participant, recipient and or ofif to the the designated Beneficiary beneficiary if requirements,such Beneficiary is not the beginning paris thenticipant’s datereceiving ofsurviving distributions, benefits under ArticleInstead,spouse, IV, keepno at additionalleast it with once your contributions during records. each calendar may be acceptedyear, a reportcontributions in the concerning account. under the any status SIMPLE of a Participant’s IRA plan. SIMPLEaccepting IRA Account only inclu cash,ding treatment statements of excessof all transactionsFor5. The more minimum informationin the SIMPLE amount on SIMPLEIRAthat Accountmust IRAs, be duringdistributed the preceding eachThe summary year, calendar beginning description year, with and therequirements statements year containing showing of the the participant’s valuecontributions, of each required asset prohibited beginningheld in transactions the date,IRA Account is with asthe of participant, etc. Attach additional pages if Decemberincludingknown as the the31 required of“required such preceding disclosures minimum year. distribution”the The trustee Participant and is section ordetermined Beneficia 408(l)(2) ryas should follows.do not notify apply the to Trustee transfer of any exception or objection to the annual accounting within SIMPLE IRAs. necessary. 60must days(a) give Theafter the required it participant, is so sent. minimum see Pub. distribution 590-A, under paragraph 2(b) for any year, beginning with the year the participant reaches age 701/2, is the participant’s account value at the close of business on December 31 of the preceding year divided by the distribution period in the uniform Form 5305-S (Rev. 4-2017) Cat. No. 23699N Form 5305-S (Rev. 4-2017) FormForm 5305-S 5305-S (Rev. (Rev. 4-2017) 4-2017) PagePage 24 2 lifetime table in Regulations section 1.401(a)(9)-9. However, if the participant’s designated beneficiary is his or her surviving spouse, the required lifetime Notice. table Unless in Regulations different communication section 1.401(a)(9)-9. methods However,provided under if the Sectionparticipant’s 1 of Article designated VIII shall beneficiary at any time is his apply, or her the survivi annualng accountin spouse, gthe referred required to in 2.minimum distribution for a year shall not be more than the participant’s account value at the close of business on December 31 of the preceding paragraphminimum distribution1 immediately for above a year and shall all not other be noticesmore than from the the participant’s Trustee hereunder account shall value be at mailed the close to the of Participantsbusiness on address December appe 31aring of the on preceding the Application yearyear divided divided by by the the number number in in the the joint joint and and last last survivor survivor table table in in Regulations Regulations section section 1.401(a)(9)-9. 1.401(a)(9)-9. The The required required minimum minimum dist distributionribution for for a a year year or to such other address as the Participant, or the Participant’s Beneficiary if such Beneficiary is then receiving benefits under Article IV, has notified the underunder this this paragraph paragraph (a) (a) is is determined determined using using the the participant’s participant’s (or, (or, if if applicable, applicable, the the participant participant and and spouse’s) spouse’s) attained attained age age ( or(or ages) ages) in in the the year. year. Trustee for this purpose. (b)(b) The The required required minimum minimum distribution distribution under under paragraphs paragraphs 3(a) 3(a) and and 3(b)(i) 3(b)(i) for for a a year, year, beginning beginning with with the the year year following following the the year year of of t thehe participant’s death (or the year the participant would have reached age 70112, if applicable under paragraph 3(b)(i)) is the account value at the 3.participant’s Filing of Returns death and (or theReports. year theThe participant Trustee shall would file havesuch reachedreturns orage reports 70//2 , withif applicable respect to under the SIMPLE paragraph IRA Account3(b)(i)) is asthe are account required value to be at filedthe by it close of business on December 31 of the preceding year divided by the life expectancy (in the single life table in Regulations section underclose theof business Code and on regulations December thereunder, 31 of the preceding including reportsyear divided required by theunder life Code expectancy Section (in 408(i), the single or by lifethe tableDepartment in Regulations of Labor section or the Department of 1.401(a)(9)-9)1.401(a)(9)-9) of of the the individual individual specified specified in in such such paragraphs paragraphs 3(a) 3(a) and and 3(b)(i). 3(b)(i). Treasury, and the Participant or Beneficiary shall provide the Trustee with such information as it may require to file such reports. 1 (c)(c) The The required required minimum minimum distribution distribution for for the the year year the the participant participant reaches reaches age age 70 701//22 can can be be made made as as late late as as April April 1 1 of of the the following following year. year. The The requiredrequired minimum minimum distribution distribution for for any any other other year year must must be be made made by by the theArticle end end of of such such XII year. year. 6.6. The The owner owner of of two two or or more more IRAs IRAs (other (other than than Roth Roth IRAs) IRAs) may may satisfy satisfy the the minimum minimum distribution distribution requirements requirements described described above above by by takin takingg from from As used herein: oneone IRA IRA the the amount amount required required to to satisfy satisfy the the requirement requirement for for another another in in accordance accordance with with the the regulations regulations under under section section 408(a)(6). 408(a)(6). (a) “Beneficiary” shall mean the person or persons currently designated ArticlebyArticle the Participant VV (including individuals, trusts, estates, partnerships, corporations, associations, charitable or educational organizations or other similar entities), or by his Beneficiary if such Beneficiary is then receiving benefits in 1. The participant agrees to provide the trustee with all information necessary to prepare any reports required by sections 408(i) and 408(l)(2) accordance1. The participant with the minimum agrees to distribution provide the requirements trustee with ofall Code information Section necessary 408(a)(6), to as prepare the Beneficiary any reports or requiredBeneficiaries by sections on the form408(i) provided and 408(l)(2) for this purpose andand Regulations Regulations sections sections 1.408-5 1.408-5 and and 1.408-6. 1.408-6. by the Trustee or, if no such Beneficiary has been designated or is alive at the time of distribution, the executor or other legal representative of the 2. The trustee agrees to submit to the Internal Revenue Service (IRS) and participant the reports prescribed by the IRS. Participant2. The trustee (or his agreesBeneficiary). to submit The to initial the InternalBeneficiary Revenue shall Service be the person (IRS) orand persons participant designated the reports as such prescribed on the Application. by the IRS. Where there is more than one Beneficiary3.3. The The trustee trustee designated, also also agrees agrees distributions to to provide provide from the the the participant’s participant’s SIMPLE IRA employer employer Account the shallthe summary summary be made description descriptionpro rata among described described those inBeneficiariesin section section 408(l)(2) 408(l)(2) who unlessunlessare alive thi thi atss theSIMPLE SIMPLE time ofIRA IRA the is a transfer SIMPLE IRA. distribution,is a transfer unless SIMPLE specified IRA. otherwise in the designation form. Article VI (b) “MFS Fund Shares” means shares of any regulated investment companyArticle or companies VI within the meaning of Code Section 851(a) as may be designatedNotwithstandingNotwithstanding by MFS anyFundany other other Distributors, articles articles which whichInc. Masculine may may be be added addedwords orwillor incorporated, incorporated, be read and construedthe the provisions provisions in the of of feminine Articles Articles I where Ithrough through required III III and and by this this the senten senten context.cece will will be be controlling.controlling. Any Any additional additional articles articles inconsistent inconsistent with with sections sections 408(a) 408(a) and and 408(p) 408(p) and and the the related related regulations regulations will will be be invalid. invalid. Article XllI ArticleArticle VIIVII Notwithstanding any provision in the document to the contrary, to the extent permitted by federal law, the Trustee shall comply with any order or levy for ThisThis agreement agreement will will be be amended amended as as necessary necessary to to comply comply with with the the provisions provisions of of the the Code Code and and the the related related regulations. regulations. Other Other amendm amendmentsents may may paymentbebe made made ofwith with child the the support consent consent obligations of of the the persons persons issued whose whose by any signatures signaturesUnited State appear appears federal below. below. or state court, regardless of the state of issuance. ArticleArticle VIIIXIVVIII NotwithstandingArticleArticle VIII VIII may may any be be otherused used provisionfor for any any additional additional in this Agreement, provisions. provisions. if theIf If no no Participant other other provisions provisions has entered will will be be into added, added, any Spectrum draw draw a a line line or through Selectthrough contract(s) this this space. space. relating I fI fprovisions provisions to this SIMPLEare are IRA added, they must comply with applicable requirements of state law and the Internal Revenue Code and may not imply that they have been reviewed or Account,added, they the provisionsmust comply of said with contract(s) applicable shall requirements continue toof applystate tolaw this and SIMPLE the Internal IRA Account Revenue to Code the extent and may applicable. not imply This that SIMPLE they hav IRAe beenAccount reviewed is or pre-approved by the IRS. establishedpre-approved with by the the intent IRS. that it qualify as an “individual retirement account” under Code Section 408(a) and the provisions hereof shall be construed in accordance with such intent. To the extent not superseded by federal law, this Agreement shall be governed by the laws of the state of New Hampshire generally with respect to the duties, rights, and responsibilities of the Trustee, but shall be governed by the laws of the Commonwealth of Massachusetts with respect to matters relating to or arising out of any payment(s) made or to be made from the SIMPLE IRA Account.
Participant’sParticipant’s signaturesignature DateDate (If(If an an individual individual other other than than the the participant participant signs signs this this form form for for the the participant, participant, indicate indicate the the individual’s individual’s relationship relationship to to the the participant.) participant.)
Trustee’sTrustee’s signaturesignature DateDate
Witness’Witness’ signaturesignature DateDate (Use(Use only only if if signature signature of of the the participant participant or or the the trustee trustee is is required required to to be be witnessed.) witnessed.) GeneralGeneral InstructionsInstructions ContributionsContributions to to Individual Individual Retirement Retirement SpecificSpecific InstructionsInstructions ArrangementsArrangements (IRAs); (IRAs); Pub. Pub. 590-B, 590-B, Section references are to the Internal Article IV. Distributions made under this Section references are to the Internal DistributionsDistributions from from Individual Individual Retirement Retirement Article IV. Distributions made under this Revenue Code unless otherwise noted. article may be made in a single sum, periodic Revenue Code unless otherwise noted. ArrangementsArrangements (IRAs); (IRAs); and and Pub Pub 560, 560, article may be made in a single sum, periodic payment, or a combination of both. The RetirementRetirement Plans Plans for for Small Small Business Business (SEP, (SEP, payment, or a combination of both. The PurposePurpose ofof FormForm distribution option should be reviewed in the SIMPLE,SIMPLE, and and Qualified Qualified Plans). Plans). distribution option should be reviewed in the Form 5305-S is a model trust account 1 Form 5305-S is a model trust account yearyear the the participant participant reaches reaches age age 70 701//22 to to agreementagreement that that meets meets the the requirements requirements of of DefinitionsDefinitions ensureensure that that the the requirements requirements of of section section sections 408(a) and 408(p). However, only 408(a)(6) have been met. sections 408(a) and 408(p). However, only Participant.Participant. The The participant participant is is the the person person 408(a)(6) have been met. Articles I through VII have been reviewed by Articles I through VII have been reviewed by whowho establishes establishes the the trust trust account. account. ArticleArticle VIII. VIII. Article Article VIII VIII and and any any that that follow follow it it thethe IRS. IRS. A A SIMPLE SIMPLE individual individual retirement retirement may incorporate additional provisions that are Trustee.Trustee. The The trustee trustee must must be be a a bank bank or or may incorporate additional provisions that are accountaccount (SIMPLE (SIMPLE IRA) IRA) is is established established after after the the agreed to by the participant and trustee to savingssavings and and loan loan association, association, as as defined defined in in agreed to by the participant and trustee to formform is is fully fully executed executed by by both both the the individual individual complete the agreement. They may include, sectionsection 408(n), 408(n), or or any any person person who who has has the the complete the agreement. They may include, (participant)(participant) and and the the trustee. trustee. This This account account for example, definitions, investment powers, approvalapproval of of the the IRS IRS to to act act as as trustee. trustee. for example, definitions, investment powers, mustmust be be created created in in the the United United States States for for the the voting rights, exculpatory provisions, exclusive benefit of the participant and his or Transfer SIMPLE IRA voting rights, exculpatory provisions, exclusive benefit of the participant and his or Transfer SIMPLE IRA amendmentamendment and and termination, termination, removal removal of of the the herher beneficiaries. beneficiaries. ThisThis SIMPLE SIMPLE IRA IRA is is a a “transfer “transfer SIMPLE SIMPLE IRA” IRA” trustee,trustee, trustee’s trustee’s fees, fees, state state law law DoDo not not file file Form Form 5305-S 5305-S with with the the IRS. IRS. ifif it it is is not not the the original original recipient recipient of of requirements,requirements, beginning beginning date date of of distributions, distributions, Instead,Instead, keep keep it it with with your your records. records. contributionscontributions under under any any SIMPLE SIMPLE IRA IRA plan. plan. acceptingaccepting only only cash, cash, treatment treatment of of excess excess The summary description requirements of contributions, prohibited transactions with the ForFor more more information information on on SIMPLE SIMPLE IRAs, IRAs, The summary description requirements of contributions, prohibited transactions with the section 408(l)(2) do not apply to transfer participant, etc. Attach additional pages if includingincluding the the required required disclosures disclosures the the trustee trustee section 408(l)(2) do not apply to transfer participant, etc. Attach additional pages if SIMPLE IRAs. necessary. mustmust give give the the participant, participant, see see Pub. Pub. 590-A, 590-A, SIMPLE IRAs. necessary.
FormForm 5305-S 5305-S (Rev. (Rev. 4-2017) 4-2017) SUPPLEMENT TO THE MFS® SIMPLE IRA DISCLOSURE STATEMENT
(Effective January 1, 2020)
This supplement to your SIMPLE IRA Disclosure Statement describes changes affecting SIMPLE IRAs made by the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”) and the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which were recently enacted. Your MFS SIMPLE IRA is governed by Internal Revenue Service (“IRS”) Form 5305-S SIMPLE Individual Retirement Trust Account. The IRS has not yet issued an updated Form 5305-S incorporating the terms of the SECURE and CARES Acts. In the interim, we are providing you with this supplement to inform you of the changes currently in effect. Appendix A to this supplement describes the 2020 contribution limits applicable to SIMPLE IRAs.
I. CARES ACT CHANGES
Suspension of 2020 Required Minimum Distributions. Required Minimum Distributions (“RMDs”) are waived for 2020. In addition to RMDs for the calendar year 2020, the waiver also applies to 2019 RMDs for those who are required to take their first RMD by April 1, 2020, if the distribution was not taken before January 1, 2020. RMDs that were already taken in 2020 may be rolled into a retirement plan or IRA by August 31, 2020. This repayment is not subject to the one rollover per 12-month period limitation. In addition, beneficiaries of SIMPLE IRA owners who died before 2020 and are subject to the 5-year distribution rule can disregard 2020, allowing a total of 6 years to fully distribute the account. Coronavirus Distributions. Distributions of up to $100,000 taken in 2020 by a qualified individual may be exempt from the 10% excise tax on premature distributions and the federal income tax due on the distribution may be spread over 3 years. A “qualified individual” is an individual who meets either of the following requirements: • An individual who is diagnosed, or whose spouse or dependent is diagnosed, with the virus SARS-CoV-2 or the coronavirus disease 2019 (collectively, “COVID-19”) by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act); or • An individual who experiences adverse financial consequences as a result of the individual, the individual’s spouse, or a member of the individual’s household (that is, someone who shares the individual’s principal residence): o being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19; o being unable to work due to lack of childcare due to COVID-19; o closing or reducing hours of a business owned or operated by the individual, the individual’s spouse or a member of the individual’s household due to COVID-19; o having pay or self-employment income reduced due to COVID-19; or o having a job offer rescinded or start date for a job delayed due to COVID-19. In addition, the distribution may be recontributed to an eligible retirement plan or IRA within three years of the distribution and treated as a rollover. Consult your tax advisor to see if you qualify.
II. SECURE ACT CHANGES
Age for Required Minimum Distributions Increased to 72. If you attain age 70½ on or after January 1, 2020, the age at which RMDs must begin from your SIMPLE IRA is now age 72 (this is the Required Beginning Date or “RBD”). The change in RBD to age 72 does not apply if you attained age 70½ before January 1, 2020. If you attained age 70½ in 2019, you would normally be required to begin receiving RMDs by April 1, 2020. However, because RMDs are waived for 2020, you must begin receiving RMDs by April 1, 2021. Change to Required Minimum Distribution Rules for Designated Beneficiaries. As a general rule, if you are a SIMPLE IRA participant who dies on or after January 1, 2020, the assets in your SIMPLE IRA must be distributed to your designated beneficiary by the end of the tenth calendar year following the year of your death. However, if your beneficiary is an “eligible designated beneficiary” as defined below, such beneficiary may receive RMDs calculated with reference to his or her life expectancy. An eligible designated beneficiary is any individual who is: • The surviving spouse of the IRA owner; • A child of the IRA owner who has not attained the age of majority. However, upon such child attaining the age of majority any remaining assets must be distributed no later than the end of the tenth calendar year after the calendar year in which the child reaches the age of majority; • Certain disabled and chronically ill individuals; and • An individual not listed above who is less than 10 years younger than the IRA owner. Qualified Birth or Adoption Distributions. Generally, if you make withdrawals from your IRA before you reach age 59½, a 10 percent early distribution penalty tax may be imposed on the taxable amount of the distribution unless certain exceptions apply. Effective January 1, 2020, an additional exception to the 10 percent early distribution tax, known as a ”qualified birth or adoption distribution” has been added. A qualified birth or adoption distribution is a distribution that: • Is made within one year of the date of the birth of your child or the date your legal adoption of an “eligible adoptee” (i.e., an individual other than a child of your spouse who is under the age of 18 or is physically or mentally incapable of self-support) is finalized; and • Is limited to $5,000 in the aggregate across all of your accounts. A qualified birth or adoption distribution may be repaid to your SIMPLE IRA and will be treated as a rollover. There is no time limit on when the qualified birth or adoption distribution must be repaid in order to receive rollover treatment.
APPENDIX A
SIMPLE IRA CONTRIBUTION LIMITS
2020 SIMPLE IRA Contribution Limits. On a pretax basis, you may elect to contribute (through salary deferrals) up to $13,500 of your own compensation to your SIMPLE IRA. However, if you have attained, or will attain, at least age 50 before the close of the taxable year, you are eligible to make a “catch-up contribution” of an additional $3,000, which means your 2020 SIMPLE IRA maximum salary deferral limit is $16,500. MFS® SIMPLE IRA DISCLOSURE STATEMENT
The following information is being provided to you by MFS® Heritage Trust CompanySM (the “Trustee”) in accordance with the requirements of the Internal Revenue Code of 1986 and regulations thereunder, as amended (the “Code”). This statement should be read in conjunction with the MFS SIMPLE IRA agreement and application (collectively, the “Agreement”) and the prospectus for each investment option you have selected. The provisions of the Agreement and prospectus(es) must prevail over this statement in any instance where this statement is incomplete or unclear.
This statement summarizes the requirements for establishing an MFS SIMPLE IRA and provisions of federal tax law applicable to SIMPLE IRAs. The state tax treatment of your IRA may be different; state tax information should be available from your state taxing authority or your own tax advisor.
Right to Revoke You may revoke your SIMPLE IRA for any reason within seven calendar days after the date you sign the application by mailing or delivering a written request that your SIMPLE IRA be revoked to:
MFS Service Center, Inc. Attention: SIMPLE Individual Retirement Account P.O. Box 219341 Kansas City, MO 64121-9341
If you revoke your SIMPLE IRA, the entire amount of your contribution, without adjustment for items such as administrative expenses, fees, interest, or fluctuation in market value, will be returned to you. If you have any questions concerning this revocation procedure you may phone MFS at 1-800-637-1255.
Introduction to SIMPLE Plans The Small Business Job Protection Act of 1996 created a retirement plan called the Savings Incentive Match Plan for Employees of Small Employers (SIMPLE plans). Your employer has chosen to establish a SIMPLE plan, which will require each plan participant to establish a SIMPLE Individual Retirement Account (“SIMPLE IRA”) into which plan contributions will be deposited. Internal Revenue Service regulations require that you be given this disclosure statement to ensure that you are apprised of the pertinent statutory rules governing a SIMPLE IRA and the federal tax consequences of establishing such an account.
SIMPLE IRA status The Internal Revenue Service issues Form 5305-S, which is being used to establish your SIMPLE IRA. However, the Internal Revenue Service has approved only the form of your SIMPLE IRA and has not approved the merits of this SIMPLE IRA or the operation of the SIMPLE Plan under which your employer makes contributions to this account..
Contributions 1. Employees eligible for a SIMPLE IRA Information on eligibility to participate in your employer’s SIMPLE Plan will be included in the summary description of the plan furnished to you by your employer. 2. Kind and amount (a) Types of Contributions. Contributions to a SIMPLE IRA may be either salary deferral contributions or employer contributions. Contributions other than rollover contributions must be made in cash and cannot exceed the maximum amount allowed under the Internal Revenue Code. (b) Amount of Contributions. On a pretax basis, you may elect to contribute (through salary deferrals) up to $11,500 of your own compensation to your SIMPLE IRA. The $11,500 maximum contribution is effective for 2012 and may increase in future years. Also, individuals age 50 and older may make additional “catch-up” contributions of up to $2,500 (for 2012) to their SIMPLE IRAs. Any employee who will attain age 50 by the end of the calendar year is eligible to make catch-up contributions for that year. The limit on catch-up contributions may increase in future years. In addition to your contributions, your employer is required to make either (1) a dollar-for-dollar matching contribution or (2) a nonelective contribution to your account each year. In general, matching contributions must equal up to 3% of your compensation, but under certain circumstances, your employer may make lower matching contributions. If your employer chooses to make a lower matching contribution, you will be notified. Instead of the match, your employer may make a nonelective contribution on your behalf equal to 2% of your compensation (compensation for purposes of any nonelective contribution is limited to $250,000 (for 2012), as indexed). (c) Rollover Contributions. During the two-year period beginning with the date you first participate in a SIMPLE plan (“Initial two-year participation period”), you may roll over or transfer contributions from a SIMPLE IRA only to another SIMPLE IRA. After the initial two- year participation period, you may roll over or transfer contributions from a SIMPLE IRA to another IRA that is not a SIMPLE IRA, or you may be able to roll over your SIMPLE IRA into another eligible retirement plan that will accept the rollover. Also, after the initial two- year participation period you may roll over a distribution from an employer-sponsored retirement plan or a Traditional IRA into a SIMPLE IRA; this provision applies to rollovers made after December 18, 2015.
3. Nature and Investment Contributions must be made in cash. Rollover contributions can be made either in cash or in MFS Fund Shares. Further, a SIMPLE IRA cannot be invested in life insurance or collectibles, nor may SIMPLE IRA assets be commingled with other property except in a common trust fund or common investment fund. There are also several other restrictions on the use of SIMPLE IRA assets described in the “Other Tax Considerations” section below. The assets in your SIMPLE IRA will be invested as you direct in MFS fund shares available for investment from time to time under the terms of your MFS SIMPLE IRA. You should read all information, including prospectuses, about the permissible investments that must be provided to you so that you can make an informed investment decision. In the event an MFS Fund in which your IRA is invested is liquidated and there is no successor fund (a “Liquidation”), if you otherwise do not direct the reinvestment of those assets, then you hereby direct that the proceeds of the Liquidation be invested in an MFS Fund that is a money market fund or, if no such money market fund exists at the relevant time, in the MFS Fund that is the shortest duration bond fund in existence at that time. All fees and other charges that must be paid from SIMPLE IRA assets in connection with each investment, and the method for computing and allocating earnings for each investment, are described in such informational materials. Growth in the value of your account invested in MFS fund shares cannot be guaranteed or projected.
4. Nonforfeitability Your interest in your SIMPLE IRA is at all times nonforfeitable. Your SIMPLE IRA is established for the exclusive benefit of you and your beneficiaries.
Distributions 1. Premature Distributions You may withdraw any or all of your SIMPLE IRA account at any time upon application to the Trustee in suitable form. However, if you make withdrawals from your SIMPLE IRA before you reach age 59½, a 10% excise tax will be imposed on the distribution in addition to ordinary income taxes. The 10% penalty increases to 25% for distributions you take before you have participated in a SIMPLE plan for at least two years. The 10% or 25% excise tax will not apply to any distribution that (1) is an exempt withdrawal of an excess contribution (discussed on next page), (2) is rolled over in accordance with Code requirements, (3) is on account of your death or disability, (4) is one of a series of substantially equal periodic payments paid not less frequently than annually for your life or life expectancy or for the joint lives or joint life expectancies of you and your beneficiary, (5) does not exceed the amount of your medical expenses that could be deducted for the year (generally speaking, medical expenses paid during a year are deductible to the extent they exceed 7.5% of your adjusted gross income for the year), (6) subject to certain restrictions, does not exceed the premiums you paid for health insurance coverage for yourself, your spouse, and dependents, if you have been unemployed and received unemployment compensation for at least 12 weeks, (7) is a transfer to another SIMPLE IRA pursuant to a decree of divorce or separate maintenance or a written instrument incident to such a decree, (8) is made due to an IRS levy for income taxes, (9) is used to pay the qualified higher education expenses of you, your spouse, or a dependent, or (10) is used for a first-time home purchase, subject to a lifetime $10,000 limit.
2. Required Distributions (a) Form of Distribution. Subject to the rules discussed in paragraphs 2(b) and 2(c), you may elect to receive distributions from your SIMPLE IRA in the following forms: (1) A single lump-sum payment; (2) Monthly, quarterly, semiannual, or annual payments over a specified period that does not extend beyond (i) your life expectancy or (ii) the joint life and last survivor expectancy of you and your designated beneficiary.
Even if you have begun receiving distributions in accordance with (2) above, you can at any time direct that all or any portion of the balance of your IRA be distributed to you. (b) To the Individual: Generally, distributions of your SIMPLE IRA account balance must begin no later than April 1 immediately following the end of the calendar year in which you reach age 70½ (the “required beginning date”). Distributions for subsequent calendar years must be made no later than December 31 of that year. The minimum amount required to be distributed once you reach your required beginning date is your SIMPLE IRA account balance as of December 31 of the calendar year immediately preceding the year for which the distribution is being made divided by the applicable “distribution period.” Generally, the distribution period is determined each year under the Uniform Distribution Period Table (provided in the Final Regulations under Internal Revenue Code Section 401(a)(9)) and is equal to the joint life and last survivor expectancy of you and a hypothetical beneficiary who is 10 years younger than you. If your spouse is your sole primary beneficiary and is more than 10 years younger than you, your required minimum distribution will be determined each year using the actual joint life and last survivor expectancy of you and your spouse, as determined under Treasury Regulation Section 1.72–9. (c) On Death: The distribution period for any amount remaining in your SIMPLE IRA at your death will generally be the single life expectancy of your designated beneficiary, based on his or her age in the calendar year following the calendar year of your death. For subsequent years, the life expectancy of a nonspouse beneficiary will be the beneficiary’s initial life expectancy, reduced by one each year. If your sole beneficiary is your spouse, his or her life expectancy will be recalculated each year. If you have more than one designated beneficiary and your account is not divided into separate accounts for each beneficiary, the life expectancy of the oldest beneficiary will be used to determine the distribution period. The determination of who your designated beneficiary is will be made as of September 30 of the calendar year following the calendar year of your death.
If your spouse is your beneficiary and you die before your required beginning date, your spouse may elect to defer receiving required distributions until the year in which you would have reached age 70½. Alternatively, if your spouse is your sole beneficiary, he or she may elect to treat the SIMPLE IRA as his or her own SIMPLE IRA, or your spouse may roll over the SIMPLE IRA into another IRA or other eligible retirement plan in which he or she participates, if such plan accepts such rollovers.
If you die after your required beginning date and you do not have a designated beneficiary as of September 30 of the calendar year following the calendar year of your death, the distribution period for your remaining account will be your life expectancy based on your age in the year of your death, reduced by one in each subsequent year. If you die before your required beginning date and do not have a designated beneficiary, the entire remaining account must be paid out by the end of the fifth year following the year of your death.
3. Minimum Distributions If the amount distributed from your SIMPLE IRA in any year is less than the minimum amount required to be distributed (see paragraph 2 above), you (or your beneficiary, if applicable) will be subject to a 50% excise tax on the difference between the amount required to be distributed and the amount actually distributed. It is the SIMPLE IRA holder’s responsibility to seek assistance from a tax advisor, to calculate minimum distribution amounts, and to direct the trustee as to the amount and method of distribution desired.
4. Taxation of Distributions Distributions from your SIMPLE IRA are taxable as ordinary income in the year they are received; SIMPLE IRA distributions do not qualify for capital gains treatment, and the special tax treatment of lump-sum distributions from qualified employer retirement plans is not available.
Other Tax considerations 1. Excess Contributions If the amount of your SIMPLE IRA contributions for a year exceeds the maximum permissible contribution, the excess contribution amount will be subject to a 6% excise tax. However, the 6% excise tax will not be imposed if you withdraw the excess contribution and any earnings on it on or before the due date for filing your federal income tax return for the year (including extensions). The amount of the excess contribution withdrawn will not be considered a premature distribution nor taxed as ordinary income, but the earnings withdrawn will be taxable income to you. Alternatively, excess contributions for one year may be carried forward and treated as a contribution in the next year to the extent that the excess, when aggregated with your SIMPLE IRA contribution (if any) for the subsequent year, does not exceed the maximum contribution amount for that year. The 6% excise tax will be imposed on excess contributions in each year they are neither returned nor within the permitted contribution limit.
2. Prohibited Transactions If you or your beneficiary engage in any transaction prohibited by Code Section 4975 (such as any sale, exchange, or leasing of any property or extension of credit between you and the account), the account will lose its tax exemption and the entire balance of the account will be treated as having been distributed to you as of the first day of the calendar year in which the transaction occurs. This distribution will be taxable as ordinary income and, if you are under age 59½ at the time, will also be subject to the 10% (or 25%) excise tax on premature distributions.
If you or your beneficiary use all or any part of your SIMPLE IRA assets as security for a loan, the portion so used will be treated as having been distributed to you, and will be taxable as ordinary income and, if you are under age 59½ at the time, will also be subject to the 10% (or 25%) excise tax on premature distributions.
3. Gift Tax If you elect during your lifetime to have all or any part of your SIMPLE IRA payable to a beneficiary upon your death, the election will not subject you to any gift tax liability. 4. Tax Withholding and Reporting Federal income tax will be withheld from distributions you receive from a SIMPLE IRA unless you elect not to have taxes withheld. You must file Form 5329 for any year in which there is an excess contribution to, premature distribution from, or insufficient distribution from your SIMPLE IRA.
5. Costs and Penalties Applicable to Initial Investment in and any Subsequent Transfer of your SIMPLE IRA In general, your initial and subsequent investments under your SIMPLE IRA are subject to certain sales commissions and custodian fees which are explained in detail in the prospectus that preceded or accompanied your receipt of this SIMPLE IRA Disclosure Statement. The fund in which you are investing will pay its investment advisor certain annual management fees and also may incur additional operating expenses.
You may transfer your contributions to a SIMPLE IRA at another financial institution at any time. After you have been a participant in a SIMPLE plan for two years, you may transfer your account to an IRA that is not a SIMPLE IRA at MFS or another financial institution or you may roll over amounts from your SIMPLE IRA to another eligible retirement plan that will accept it. To initiate such a transfer, contact the new trustee or custodian to obtain the appropriate forms. MFS will complete a “trustee-to-trustee” or similar transfer of all or a portion of your SIMPLE IRA account balance upon receipt of the recipient institution’s acceptance of the SIMPLE IRA account. If your contribution was invested in a mutual fund subject to a sales charge, then the sales charges will not be refunded. MFS is not the designated financial institution of your employer’s SIMPLE plan. As a result, costs and penalties (including load fees) may be imposed on accounts that are transferred to another trustee or custodian.
6. Additional Information You may obtain further information concerning your SIMPLE IRA from any district office of the Internal Revenue Service or by visiting its Web site at www.irs.gov, or you may contact MFS at 1-800-637-1255.
Note: Although MFS may provide general information concerning your MFS SIMPLE IRA, MFS does not provide tax or other financial, legal, or technical advice. You are urged to contact your own advisor for such guidance.
In 1924, MFS launched the first US open-end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial professionals, intermediaries and institutional clients, MFS still serves a single purpose: to create long-term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market.
IRAE-SIMPLE-APP-9/20 20-EX MFS® FAMILY OF FUNDS
FUND NAME FUND NUMBER (BY CLASS) FUND NAME FUND NUMBER (BY CLASS) A C A C U.S. EQUITY MULTI-ASSET Massachusetts Investors Trust 12 312 MFS® Aggressive Growth Allocation Fund 1029 1329 Massachusetts Investors Growth Stock Fund 13 313 MFS® Conservative Allocation Fund 1026 1326 MFS® Blended Research® Core Equity Fund 84 384 MFS® Diversified Income Fund 1039 1339 MFS® Blended Research® Growth Equity Fund 1062 1362 MFS® Global Total Return Fund 24 324 MFS® Blended Research® Mid Cap Equity Fund 1067 1367 MFS® Growth Allocation Fund 1028 1328 MFS® Blended Research® Small Cap Equity Fund 1063 1363 MFS® Lifetime® 2020 Fund 1036 1336 MFS® Blended Research® Value Equity Fund 1061 1361 MFS® Lifetime® 2025 Fund 1056 1356 MFS® Core Equity Fund 91 391 MFS® Lifetime® 2030 Fund 1037 1337 MFS® Equity Income Fund 1054 1354 MFS® Lifetime® 2035 Fund 1057 1357 MFS® Growth Fund 07 307 MFS® Lifetime® 2040 Fund 1038 1338 MFS® Low Volatility Equity Fund 1023 1323 MFS® Lifetime® 2045 Fund 1058 1358 MFS® Mid Cap Growth Fund 83 383 MFS® Lifetime® 2050 Fund 1047 1347 MFS® Mid Cap Value Fund 1024 1324 MFS® Lifetime® 2055 Fund 1059 1359 MFS® New Discovery Fund 97 397 MFS® Lifetime® 2060 Fund 1068 1368 MFS® New Discovery Value Fund1 1050 1350 MFS® Lifetime® 2065 Fund 1073 1373 MFS® Research Fund 14 314 MFS® Lifetime® Income Fund 1034 1334 MFS® Technology Fund 98 398 MFS® Managed Wealth Fund 1060 1360 MFS® Utilities Fund 35 335 MFS® Moderate Allocation Fund 1027 1327 MFS® Value Fund 93 393 MFS® Prudent Investor Fund 1069 1369 MFS® Total Return Fund 15 315 FIXED INCOME MFS® Corporate Bond Fund 11 311 MONEY MARKET MFS® Emerging Markets Debt Fund 33 333 MFS® U.S. Government Cash Reserve Fund1 01 301 MFS® Emerging Markets Debt Local Currency Fund 1052 1352 MFS® U.S. Government Money Market Fund1 10 N/A MFS® Global Opportunistic Bond Fund 1043 1343 MFS® Global High Yield Fund 70 370 SPECIALTY/ALTERNATIVE MFS® Government Securities Fund 26 326 MFS® Commodity Strategy Fund 1042 1342 MFS® High Income Fund 18 318 MFS® Global Alternative Strategy Fund 1041 341 MFS® Income Fund 34 334 MFS® Global Real Estate Fund 59 359 MFS® Inflation-Adjusted Bond Fund 1031 1331 MFS® Limited Maturity Fund 36 336 MFS® Total Return Bond Fund 78 378
GLOBAL/INTERNATIONAL EQUITY MFS® Blended Research® Emerging Markets Equity Fund 1066 1366 MFS® Blended Research® International Equity Fund 1064 1364 MFS® Emerging Markets Equity Fund 85 385 MFS® Emerging Markets Equity Research Fund 1071 1371 MFS® Global Equity Fund 04 304 MFS® Global Growth Fund 09 309 MFS® Global New Discovery Fund 1053 1353 MFS® International DiversificationSM Fund 1032 1332 MFS® International Growth Fund 86 386 MFS® International Large Cap Value Fund 1070 1370 MFS® International New Discovery Fund1 74 374 MFS® International Intrinsic Value Fund1 87 387 MFS® Low Volatility Global Equity Fund 1025 1325 MFS® Research International Fund 99 399
1 MFS U.S. Government Cash Reserve Fund, MFS U.S. Government Money Market Fund, MFS New Discovery Value Fund, MFS International Intrinsic Value Fund, and MFS International New Discovery Fund are closed to new investors subject to certain exceptions. Please see the prospectus for additional information. IRA-FNDLIST-SUP- 9/21 21-EX