You may have heard about this new savings option called MyRA or My Retirement Account. On January 29, 2014, President Obama signed an executive order instructing the U.S. Treasury to create a retirement savings option for employees who are not offered 401(k)’s through their employer. This MyRA will invest in government savings bonds and be backed by the U.S. government. “MyRA” – a simple, safe and affordable starter savings account to help millions of Americans start savings for retirement”. *
This new savings option will have the same tax guidelines as Roth IRAs. Employees will pay taxes when contributing to the account and receive retirement distributions tax-free. The MyRA will also be portable and be able to be rolled into a Roth IRA at any time. And, with the Treasury Department managing these accounts, employers will only need to worry about payroll deferrals for the MyRA.
Keep an eye out for updates. MyRAs will begin with a pilot program offered to employees whose employers voluntarily join by the end of 2014. Need more information? Let us know. Whether your an employee or an employer, we have options for both. Call us today at 419-522-9892.
*https://www.whitehouse.gov/the-press-office/2014/01/28/fact-sheet-opportunity-all-securing-dignified-retirement-all-americans
Image Source: Flickr