The events and transactions outlined in the table below are general annuity tax guidelines. As always, please contact your financial representative or tax professional regarding your specific circumstances.

Financial Type

Taxable or
Non-taxable?

Reportable or Non-Reportable to IRS?
1035 exchange Non-taxable Reportable
Collateral assignment Taxable (to the extent of earnings) Reportable
Excess contributions Tax penalty on excess Reportable
Indirect rollovers1 Non-taxable if completed within 60-days Reportable
Direct rollovers Non-taxable Reportable
Direct Transfers Non-taxable Non-Reportable
Line of business (LOB) changes
   403(b) to IRA
   403(b) to IRA
   SIMPLE IRA to IRA2
   SIMPLE 401(k) to IRA
   IRA to 403(b)
 
Non-taxable
Non-taxable
Non-taxable
Non-taxable
Non-taxable
 
Reportable
Reportable
Reportable
Reportable
Reportable
Loan defaults Taxable Reportable
Non-qualified contracts distribution to owner(s)
   With earnings
   Without earnings
 
Taxable
Non-taxable
 
Reportable
Non-Reportable
Ownership change
   Individual —› Individual (non-spouses)
   Transfer between spouses
   Transfer incident to divorce
   Collateral assignment
 
Taxable (if earnings)
Non-taxable
Taxable (if earnings)
Taxable
 
Reportable
Non-Reportable
Reportable
Reportable
Qualified plans distribution to owner Taxable Reportable
Roth conversion (IRA to Roth IRA) Taxable Reportable
Roth recharacterization (Roth IRA to IRA) Non-taxable Reportable

 


1 They are reportable and taxable if the account owner takes receipt of the money. However, a tax form 5498 would offset the 1099-R reporting. This is especially true for 60-day rollovers.

2 After the expiration of the 2 year period, the IRA owner may rollover money to an IRA that is not a SIMPLE IRA. You can only transfer money to another SIMPLE IRA during the 2 year period. 

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.

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John Hancock Annuities are issued by John Hancock Life Insurance Company (U.S.A.), Lansing, MI 48906, which is not licensed in New York. In New York, John Hancock Annuities are issued by John Hancock Life Insurance Company of New York, Valhalla, NY 10595. John Hancock Variable Annuities are distributed by John Hancock Distributors LLC, member FINRA.