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John Hancock Funds and ExpertPlan Introduce T(k)O
Issued by: ExpertPlan
Date: May 7, 2002
|Boston -- John Hancock Funds today introduced an individual 401(k) plan for owner-only businesses, in partnership with ExpertPlan, a leading provider of online retirement plan administration. The new John Hancock Funds plan, named T(k)O [Total 401(k) for Owners], is available to any business that employs only owners and their immediate family members.
John Hancock Funds is one of only a few companies currently offering a totally online owner-only 401(k) product, which is a new retirement savings vehicle made possible by The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). According to the United States’ Bureau of Labor Statistics, 11.5 million people were self-employed in 2000, and the most popular retirement plans for this group prior to EGTRRA included SEP and SIMPLE IRA plans. The new owner-only 401(k), however, offers several advantages over these other plans.
EGTRRA significantly raised contribution limits for retirement plans across the board, and owner-only 401(k)s boast the highest limits. Owner-only 401(k) plans also offer the ability to make tax-free loans against the plan and have a structure that is familiar to many self-employed people with previous employer-sponsored 401(k) plans. In addition, administrative requirements for owner-only 401(k)s have been simplified, potentially increasing their appeal to small business owners.
“Self-employed individuals now have the opportunity to give themselves a big raise in their retirement savings, and we anticipate that owner-only 401(k)s will become the vehicle of choice,” said Arthur Creel, senior sales vice president for John Hancock Funds. “By combining our investment management experience with ExpertPlan’s turnkey online services, we think T(k)O offers two
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May 6, 2002
important benefits to this large—and growing—market: quality investment options and simple administration.”
"T(k)O is an example of the Internet at its best," said Steve Benson, senior vice president, business development, ExpertPlan. "The technology supporting the product allows a very low-cost and easy-to-administer 401(k) plan. But more importantly, because both the investment element and administration are systematically integrated, the plan will automatically meet the federal compliance rules. T(k)O alleviates the fear of red tape that small employers have of a qualified plan.”
John Hancock Funds’ T(k)O participants can choose from more than 30 John Hancock mutual funds, which cover the spectrum of investment objectives and risk. T(k)O accepts rollovers from previous
defined contribution plans, and through June 30, 2002, John Hancock Funds will waive all conversion and start-up fees. There is no minimum initial investment to start an account.
ExpertPlan provides online plan set-up and enrollment, as well as complete record-keeping and transaction management services. Its web-based model empowers plan participants to conveniently manage their own accounts, eliminating third-party errors and reducing costs and administrative burdens. ExpertPlan’s 401(k) plans support financial professionals with a streamlined sales process, enabling them to request and generate proposals online, as well as download pre-populated set-up forms.
ExpertPlan also provides record-keeping services for two other John Hancock Funds retirement products: John Hancock Essential 401(k), a full-service plan with no minimum or maximum number of participants required, and John Hancock Integrated 401(k), specifically designed to serve third-party administrators.
ExpertPlan (www.expertplan.com) is a leading Internet-based provider of retirement plan solutions, which enables financial professionals to offer high-quality, low-cost retirement plans to meet the needs
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May 6, 2002
of their clients. The company has alliances with more than 50 fund families, and provides services to leading financial companies across the US. ExpertPlan was founded in 1999 by core members of the information systems management team from one of the world's largest financial services corporations, and is located at 50 Millstone Road, Building 400, Suite 100, East Windsor, NJ 08510, 609/918-2500.
About John Hancock Funds
John Hancock Funds, a premier investment management company, managed $29 billion in open-end funds, closed-end funds, private accounts, variable annuities and retirement plans for individual and institutional investors as of March 31, 2002.
John Hancock Funds is a wholly owned subsidiary of John Hancock Financial Services, Inc. (NYSE: JHF). John Hancock and its affiliated companies provide a broad array of insurance and investment products and services to retail and institutional customers. As of March 31, 2002, John Hancock Financial Services and its subsidiaries had total assets under management of $125.3 billion.
For more complete information on any John Hancock Funds retirement product and a prospectus, please call your financial professional or 1-800-225-6020. Please read the prospectus carefully before you invest or send money.
Lisa Rhodes, PR Director, The Atlantic Group
For John Hancock Funds:
Jessica Cowan, PR Specialist, John Hancock Funds
For more information: http://www.expertplan.com
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