Many people do not have access to 401ks and other retirement options through their employers, but the US Treasury has introduced a new way for individuals to start saving for retirement. The myRA (My Retirement Account) was introduced in December of 2014 and offers many of the same perks and benefits as a traditional retirement account.
Here are some of the benefits of this new program…
- Make after-tax contributions to an IRA account through reoccurring payroll deductions
- You can deposit money from multiple employers
- You can carry the account from one job to the next
- Contributions are securely invested in the U.S. Treasury savings bond and earns interest at the same rate as investments in the government securities fund available to federal employees
- The maximum annual contribution is $5,500 ($6,500 for those 50 and older) as with all Roth IRA’s
- Income limits apply
- After-tax contributions can be withdrawn anytime without tax or penalty.
- myRA accounts can be used for 30 years or until the balance reaches $15,000… your investment then gets rolled over to a private sector Roth IRA where the individual can continue to grow their investment.