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Rollover IRAs

Related Resources Understanding Rollover IRAs Minimum Distribution Rules Solid Financial Ratings    These ratings, which are current as of August 10, 2010, and are subject to change, are assigned to John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York as a measure of the companies' ability to honor any guarantees provided by John Hancock Variable Annuities and any applicable optional riders, but not specifically to the products, the performance (return) of these products, the value of any investment in these products upon withdrawal, or to individual securities held in any portfolio.

What is a Rollover IRA? A rollover IRA is a type of IRA that is set up to receive distributions from a 401(k) or other qualified retirement plan. Once the rollover IRA account is opened and your 401(k) assets are transferred to it, you can invest your money in a variety of investment options at your discretion and according to your tolerance for risk and financial goals. Advantages Defers current taxation. Your money can continue to grow tax deferred. You can make additional contributions. You can consolidate multiple tax-deferred accounts. You may be able to take penalty-free withdrawals for a first-time home purchase or college education expenses prior to age 59½. Disadvantages Withdrawals made prior to age 59½ may be subject to a 10% IRS early withdrawal penalty and will be subject to ordinary income tax. State and local taxes may also apply. You cannot take a loan from your IRA. No employer matching. Fees and expenses could be potentially higher than in the plan.