John Hancock Financial Services has introduced a 412(i) defined benefit plan for small business owners that are without retirement plans, the firm announced today. The new service takes advantage of recent changes in tax legislation, which will take effect Jan. 1 2002.

A 412(i) plan, also known as a ‘fully insured’ plan, differs from 401(k) and all other qualified retirement plans, because it provides employees with a guaranteed retirement benefit payable at normal retirement age, with reduced benefits payable at an earlier retirement date.

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