It is a variable annuity that is exclusively available for terminating or retiring 401(k) plan participants with John Hancock who have money in the Guaranteed Income for Life option within the plan. The GIFL Rollover Variable Annuity IRA allows you to maintain the benefits of the Guaranteed Income for Life option. By using the GIFL Rollover Variable Annuity to set up a rollover IRA, you will not need to pay any income taxes on your rollover amount until you start taking income or make a withdrawal.
A variable annuity is a long-term contract between you and an insurance company, designed to help you grow your retirement assets and provide regular withdrawals when you are in retirement. When considering an annuity for use in an IRA or other tax-qualified retirement plan (i.e., 401(k), 403(b), 457), it is important to note that there is no additional tax deferral benefit, since these plans are already afforded tax-deferred status. Thus, an annuity should only be purchased in an IRA or qualified plan if some of the other features of the annuity are of value, such as access to specific portfolio choices, the ability to have guaranteed payments for life and other guaranteed benefits, and you are willing to incur any additional costs associated with the annuity to receive such benefits. See the prospectus for details.
The GIFL Rollover Variable Annuity IRA was designed to mirror substantially the Guaranteed Income for Life option in your 401(k) plan. You receive the same benefits of: downside protection, upside potential, and lifetime income. When you roll over to the GIFL Rollover Variable Annuity IRA, your 401(k) account value and Benefit Base are transferred, dollar-for-dollar. You also have access to four Lifestyle Portfolios, three American Funds Portfolios, one Franklin Templeton Portfolio and money market investment options that are similar to those available in the Guaranteed Income for Life option in your 401(k) plan. Each contract anniversary, your Benefit Base will "step up" if your account value is greater than the Benefit Base. The annual step up fee is 0.35% of the Benefit Base. The fee may increase to a maximum of 0.65% upon step up. Should the annual step up fee increase, there is always the option to decline to step up and retain the previous Benefit Base and fee. The guarantee is backed by the claims-paying ability of the issuer, and does not apply to the investment performance or safety of the underlying portfolios.
You can begin taking your lifetime income on any contract anniversary after age 59 1/2 so long as you have satisfied the five-year holding period. The five year holding period starts on the date of the first contribution into the Guaranteed Income for Life option in your 401(k) plan. Any remaining holding period will be carried over to the GIFL Rollover Variable Annuity IRA at the time of rollover. Also, the holding period is reset for any additional purchase payments if the additional purchase payments exceed 20% of the Benefit Base at the time of the payment; or, if the additional purchase payments, when combined with all other purchase payments made during the contract year, exceed 20% of the Benefit Base.
Yes. Contributions can be made to your IRA for each year that you receive compensation and have not reached age 70 1/2. For 2008, the contribution limit is $5,000 ($6,000 if you are age 50 or over). Also, you may make a one-time contribution of existing qualified plan assets (e.g., rollover IRA) of up to $25,000. Note that you can make contributions after you begin receiving income. However, this may or may not increase your lifetime income amount. See the prospectus for more detailed information.
Your lifetime income amount is 5% of your Benefit Base at the time of your first withdrawal (4.5% for you and your spouse, if you so choose). This applies to both the Guaranteed Income for Life option in your plan and the GIFL Rollover Variable Annuity IRA. You must be age 59 1/2 to begin taking lifetime income.
Yes, so long as you have not already started to receive your lifetime income amount based only on your own life. Also, your lifetime income amount will be 4.5% of your Benefit Base.
Yes. If your underlying investments perform well during retirement and your Benefit Base subsequently steps up, your lifetime income amount will be increased accordingly.
Yes, you can withdraw your money any time you like without incurring any charges. If you do so prior to taking your lifetime income amount, your Benefit Base will be reduced by the amount of your withdrawal on a pro rata basis. If you withdraw money in excess of your lifetime income amount for any year after your lifetime income amount begins, your income and Benefit Base will also be adjusted on a pro rata basis. Charges may apply to amounts taken in excess of the withdrawal amount available without a withdrawal charge during the surrender charge period. All withdrawals reduce the death benefit and optional benefits. In addition, withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 59½, a 10% IRS penalty tax may apply.
The fee for the Guaranteed Income for Life feature in the GIFL Rollover Variable Annuity IRA is currently 0.35%. See the prospectus for more detailed information.
Yes. The GIFL Rollover Variable Annuity IRA also includes asset-based charges for daily administration, 0.15%, and mortality and expenses, 0.20% When these fees are combined with the fee for Guaranteed Income for Life and the underlying portfolio expenses, the result is a similar, but not identical, cost structure as the Guaranteed Income for Life option in your plan.
To view, download, or order a prospectus, including fees, expenses, and investment options, call 1-888-My-JH-IRA or contact your plans financial representative.
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Contact the John Hancock Rollover Education Center at 1-888-695-4472 (1-888-My-JH-IRA) for more information including the product prospectus that contains complete details on investment objectives, risks, fees, charges, and expenses, as well as other information about the investment company, which should be carefully considered. Please read the prospectuses carefully prior to investing. The prospectuses contain this and other information on the product and the underlying portfolios.
John Hancock Annuities and the optional riders, which are available for an additional fee, are not available in all states; product features may vary, subject to state regulation. Variable annuities are not FDIC insured, are long-term contracts designed for retirement purposes, and are subject to investment risk, including the possible loss of principal. This informtion was prepared to support the promotion and marketing of the Guaranteed Income For Life Rollover Variable Annuity. Neither John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Distributors LLC, nor any of their representatives provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein. Guaranteed Income for Life Rollover Variable Annuity is issued and administered by John Hancock Life Insurance Company (U.S.A.), Bloomfield Hills, MI, which is not licensed in New York. Guaranteed Income for Life Rollover Variable Annuity is distributed by John Hancock Distributors, LLC, Member FINRA.
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