With millions of Americans lacking adequate retirement savings, the U.S. Department of the Treasury announced the national launch of myRA, a simple, safe and affordable new savings option for those who don’t have access to a retirement savings plan at work. People can get information about myRA and sign up for an account at myRA.gov. “myRA is designed to remove common barriers to saving, and give people an easy way to get started,” said U.S. Treasury Secretary Jacob J. Lew. “myRA has no fees, no risk of losing money and no minimum balance or contribution requirements. To make saving easier than ever, you can now put savings into myRA directly from your bank account.” With the initial pilot phase of the program concluded, myRA is now available nationwide with multiple ways for people to start saving:
Paycheck. Set up automatic direct deposit contributions to myRA through an employer.
NEW: Checking or savings account. Now savers can fund a myRA account directly by setting up recurring or one-time contributions from a checking or savings account.
NEW: Federal tax refund. At tax time, direct all or a portion of a federal tax refund to myRA.
According to a 2015 Federal Reserve Report, 31 percent of non-retired people said they have no retirement savings or pension whatsoever. Additionally, a 2013 report by the National Institute on Retirement Savings found that the average near-retirement household had only $12,000 in retirement savings. Among workers who do not participate in a 401(k) or other defined contribution plan, 42 percent say it’s because their employer does not offer one. Furthermore, among part-time workers, a 2015 BLS Economic Release found that 62 percent don’t have access to a retirement plan at work. myRA is designed as a starter retirement account to help bridge the savings gap for many of myRA is a Roth IRA and follows the same eligibility requirements. To participate in myRA, savers (or their spouses, if married filing jointly) must have taxable compensation to be eligible to contribute to a myRA account and be within the Roth IRA income guidelines. For more information about myRA or to sign up for an account, visit myRA.gov.
