What is a required minimum distribution (RMD)?

What happens if I do not take an annual RMD or mistakenly take less than my RMD?

What taxes apply to my RMD?

Can I view my RMD online?

Where can I learn more about RMDs?

 

 

What is a required minimum distribution (RMD)?

An RMD is a taxable distribution that usually must be taken from your retirement account no later than April 1 of the calendar year after the calendar year you turn age 70½. A distribution must then be taken at least once annually every year after that, no later than December 31. This is required by the Internal Revenue Code.

An RMD applies to most types of retirement plans, including, but not limited to: Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit-sharing plans, and other qualified pension or retirement plans.

 

What happens if I do not take an annual RMD or mistakenly take less than my RMD?

If you fail to take your RMD, you may be subject to an excise tax equal to 50% of the amount that should have been distributed but was not. The Internal Revenue Service (IRS) may waive the excise tax if you establish that you did not take your full RMD due to a reasonable error and that reasonable steps are being taken to withdraw the full amount required. To request a waiver of the excise tax, you must file IRS Form 5329 with your income tax return and attach a letter of explanation (instructions may be found at www.irs.gov). Please consult with your own tax professional for guidelines specific to your situation.

 

What taxes apply to my RMD?

RMDs are generally subject to federal income tax and applicable state income tax. However, if your account holds after-tax contributions, part of your RMD will be treated as a non-taxable return on a portion of those contributions. Please consult with your own tax professional for guidelines specific to your situation.

 

Can I view my RMD online?

Yes. The RMD amount calculated by John Hancock for your annuity contract can be found on the Contract Details page of your online account.
  • Register or log in to your account from the www.jhannuities.com homepage
  • Select “My Contract” on left menu
  • Scroll down to the Contract Specifications section

 

Where can I learn more about RMDs?

Click here to view John Hancock’s Required Minimum Distribution (RMD) Guide: All you need to know about your RMD.

 



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.

This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Comments on taxation are based on John Hancock’s understanding of current tax law, which is subject to change. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

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Submit Your RMD Request Online
Submit your RMD request entirely online on the Forms tab. Within the forms list, find the RMD Request form and click the "Submit Online" button.
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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.