John Hancock Funds is proud to offer the Total 401(k) for Owners, a retirement product designed for owner-only small businesses. Any business, either incorporated or unincorporated, that employs only owners and their spouses are eligible for T(k)O.
The TKO is web-based and paperless; set-up and administration is all done online. To access your current TKO plans or to run a proposal please click on the image to the right or go directly to www.jhnetplan.com.
As a result of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA,) benefits that used to be limited to large corporations are now available to family businesses and independent professionals such as…
| Consultants |
Dentists |
Real Estates Professionals |
| Mortgage Brokers |
Lawyers |
Architects |
| Accountants |
Contractors |
Doctors |
In most cases, a T(k)O allows a higher contribution than other retirement plans.
2010 Contribution Limits for Unincorporated Businesses
| Net Self employment income1 |
$50,000 |
$100,000 |
$150,000 |
| SEP-IRA |
$9294 |
$18,587 |
$28,389 |
| SIMPLE IRA2 |
$12,853 |
$14,206 |
$15,117 |
| T(k)O3 |
$25,794 |
$35,087 |
$44,723 |
1. Net business profit less ½ of the self employment tax
2. SIMPLE IRA contribution limits are $2,500 higher if you are over 50 years of age
3. T(k)O contribution limits are $5,500 higher if you are over 50 years of age.
This is not meant as tax advice. Please consult your tax adviser for information on your specific situation.
Access to your money
You can borrow 50% of plan assets up to a maximum of $50,000, with no federal taxes or penalties. And better yet, the interest you pay on the loan is credited to your account.
Simplified plan administration
In the past, it was difficult for a small business owner to establish and maintain a high quality retirement plan. Recent tax law changes and John Hancock Funds’ innovative internet-based retirement solutions have changed all that. The T(k)O is not subject to discrimination testing and there is no annual Form 5500 filing until plan assets exceed $250,000.
Easy plan conversions and account consolidation
The great news is that you can convert almost any retirement plan into a T(k)O and have access to all the additional benefits offerred through the product. You can take your assets from a Traditional IRA, SEP IRA, SIMPLE IRA, Keogh, Defined Benefit, Profit-Sharing, Money Purchase, 403(b) or governmental 457(b) plan and convert or transfer the assets into a T(k)O.
Easy online plan maintenance
John Hancock Funds understands that you have a business to run! We've made the T(k)O an Internet-based retirement plan in order to give you access whenever you want it and to make maintaining your plan easy. All transactions are done via a secure Internet-based Web site.
Flexible contributions
The Choice is up to you. You may contribute any amount up to the maximum allowable contribution- or choose to contribute nothing at all, entirely at your discretion. In addition, all assets in the plan are immediately 100% vested.
Low-cost fee schedule
| Set-up fee |
$75 |
| Annual fee |
$75 (waived once assets reach $100,000) |
| Loan setup |
$75 per loan |
| Loan maintenance |
$50 annually |
| Optional Form 5500 preparation |
$250 (only for plans with $250,000 or more in assets) |
| Distributions |
$60 |