Federal myRA Program Launches Nationwide

Pink Piggy Bank On Top Of A Pile Of One Dollar Bills

The myRA program, a retirement savings program announced by Barack Obama in 2014 and developed by the U.S. Treasury, launched nationwide this week.

The program allows participants to save up to $5,500 per year in a no-fee, 401(K)-style retirement account.

More from the LA Times:

The myRA program […] has now launched nationally, the Treasury Department said Wednesday. The myRA is a form of Roth IRA, which allows workers to save their after-tax dollars for retirement. It’s aimed at overcoming some of the obstacles that keep some workers from saving for retirement, especially those who are low-income or who lack retirement benefits: The myRA charges no fees, is low-risk and convenient.

By allowing people to set up automatic contributions, the program is meant to make it easier for people to save, officials said. And contributions can be small, even as little as a few dollars. The accounts have no minimum balance.

People also don’t need to worry about losing money because their savings would be stored in an account where their principal is backed by the U.S. government. The plans will store people’s savings in low-risk investments where the money can grow at a conservative interest rate.

Since last year, the government has been testing the program quietly through a pilot that allowed people to set up automatic deductions from their paychecks. But in the official rollout, the government is also letting people contribute from their checking or savings accounts and even from their tax refunds. Like a regular Roth IRA, workers contribute up to $5,500 a year, or $6,500 a year for people age 50 and up.

Get more info or sign up at myRA.gov.

 

Photo by www.SeniorLiving.Org

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