The U.S. Treasury Department has introduced myRA, a retirement savings account for individuals looking for a simple, safe, and affordable way to save for their retirement. Over thirty percent of all American households have no retirement savings. myRA provides a way to start saving for retirement.
Designed for people who don’t have access to a retirement savings plan through their job, myRA offers a favorable choice for those who want to save for retirement. With myRA:
- There’s no cost and no fees to open and maintain an account;
- The investment will not lose money;
- U.S. Treasury backs the investment;
- Account owners choose how much to save ($2, $20, $200 – whatever fits their budget);
- If account owners change jobs, the account stays with them; and
- Account owners can withdraw the money they put in without tax and penalty.
There are several ways to fund a myRA account:
- From a paycheck. Account owners can set up automatic direct deposits with their employer(s) to their myRA.
- From a checking or savings account. Account owners can set up recurring or one-time contributions from their checking or savings accounts to their myRA.
- From a federal tax refund. At tax time, account owners can direct all or part of their federal tax return to their myRA.
Employers do not manage employee myRA accounts, contribute to them, or match employee contributions. At no cost to them, employers simply facilitate an ongoing payroll deduction from the employee’s paycheck to the designated myRA account in the amount the employee chooses.
I encourage you to learn more about myRA at www.myRA.treasury.gov.