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Keep your retirement plan savings working for you

No, it generally isn’t a taxable event if you do a direct rollover to an IRA. A direct rollover means that you don’t receive a check personally; rather, the money is sent directly from your retirement plan to a new John Hancock IRA. It’s important to know that a direct rollover to a John Hancock IRA, or any IRA:

• Doesn’t trigger current year income taxes
• Eliminates the mandatory IRS 20% income-tax withholding requirement that would exist if you withdrew your 401(k) savings in cash
• Lets you avoid the 10% early withdrawal penalty if you’re under 59½

If you take a cash distribution from your employer’s plan and want to open an IRA with John Hancock, you do have 60 days from the time you receive the money to complete the rollover. Completing the rollover within 60 days allows the money to generally continue to grow tax deferred in the new IRA; however, it doesn’t eliminate the 20% income-tax withholding—which you may have to pay out of your own pocket. This amount, however, may be credited against your taxes when you file your taxes.

No matter which investment choices you make, your retirement plan balance will transfer to a John Hancock IRA at net asset value. This means that you’re not required to pay a sales charge or front-end load to invest in the mutual funds in your John Hancock IRA.​ 

If you open a John Hancock Investments IRA, there’s a $15 annual maintenance fee that pays for the annual tax reporting and servicing of the IRA.​ All mutual funds in the John Hancock Investments IRA are subject to the underlying management expenses charged by each fund. For specific details, please see the fund prospectuses available in the Documents section of jhinvestments.com/investments.⁴

If you open a John Hancock Managed IRA, there’s a 0.5% annual program fee, a $4 monthly fee for accounts less than $50,000, plus fund expenses.⁵

The John Hancock Investments IRA offers flexibility and control. This is a self-directed IRA that allows you to select your own investments and update your strategy over time. There are a variety of John Hancock mutual funds available for your John Hancock Investments IRA. These choices include target-date funds as well as socially responsible mutual fund options. It’s possible that many of the investment options available in the IRA rollover program are like the ones you now have in your former employer’s retirement plan. It’s also possible that some of your retirement plan choices won’t exactly match up to those available in the John Hancock IRA rollover program; however, all major asset classes are covered, and a broad selection of world-class funds is available for you to choose from.​ 

The John Hancock Managed IRA is professionally managed. If you’d like help selecting your investments and have decisions made on your behalf, this option provides personalized advice and a customized investing strategy tailored to you and your goals. If you choose the John Hancock Managed IRA, we’ll design a customized portfolio for you, consisting of exchange-traded funds (ETFs) diversified across asset classes. ETFs typically have a lower overall expense ratio than similarly styled mutual funds. Over time, we may make changes in our underlying ETFs as we seek to create the most efficient portfolios. 

Your comfort with making investment decisions and desire for ongoing advice are two important factors in deciding which option to choose. To discuss it with our specialists, call 888-695-4472.

Any withdrawal of pretax money from an IRA is subject to ordinary income tax, no matter when you take it. In addition, if you’re under age 59½, your withdrawal may be subject to a 10% early withdrawal penalty tax, and state and local taxes may apply.​ There are special circumstances that might eliminate the early withdrawal tax penalties, so please speak with your tax professional for details.​ 

Yes, you may make new contributions to your new rollover IRA account if you’re eligible. You can also use this account for money that’s being consolidated from other qualified accounts, such as other retirement plan accounts from other employers or old IRAs.​

If you have an existing retirement plan loan, you’ll need to either repay it or take a taxable distribution for the loan amount prior to the transfer. This taxable distribution may subject you to a 10% early withdrawal tax penalty in addition to the income tax due on the withdrawal.​ Please consult your tax professoinal for more information. And contact us if you'd like to discuss other possible options.

1 Other account and investment-related fees are applicable. 2 As other options are available, such as leaving it in your old plan, rolling over to an IRA, or cashing out, you are encouraged to review all of your options to determine if combining your retirement accounts is suitable for you. 3 Ordinary income taxes are due on withdrawal. Withdrawals before the age of 59½ may be subject to an early distribution penalty of 10%. 4 Other account and investment-related fees and charges are applicable. 5 The program fee covers investment advice, the ongoing management of the program’s account assets, and the trade execution, clearance, settlement, and custodial services provided by Pershing. The program fee does not cover the fees and expenses of underlying investments.

Investing involves risks, including the potential loss of principal. These products carry many individual risks, including some that are unique to each fund.

Clients should carefully consider a fund's investment objectives, risks, charges, and expenses before investing. To request a prospectus or summary prospectus with this and other important information, visit jhinvestments.com.

Mutual funds are distributed by John Hancock Investment Management Distributors LLC, member FINRA, SIPC.

John Hancock ETFs are distributed by Foreside Fund Services, LLC in the United States, and are subadvised by Dimensional Fund Advisors LP or our affiliate Manulife Investment Management (US) LLC. Foreside is not affiliated with John Hancock Investment Management Distributors LLC, Manulife Investment Management (US) LLC, or Dimensional Fund Advisors LP.

Before investing, consider your investment objectives and John Hancock Personal Financial Services, LLC's (JHPFS's) fees. JHPFS's fees do not include the expenses of the underlying investments in your account.

Advice from John Hancock for the Managed IRA is provided as a fiduciary in the participant’s best interest.

John Hancock Personal Financial Services, LLC (JHPFS) is an affiliate of John Hancock Retirement Plan Services LLC. JHPFS is an SEC registered investment adviser that provides automated advisory services for clients by managing investments through the John Hancock Managed IRA program. Assets in a John Hancock Managed IRA will be held at Pershing Advisor Solutions LLC, a registered broker-dealer, member FINRA, SIPC. John Hancock Personal Financial Services, LLC, 200 Berkeley Street, Boston, MA 02116.