Jump to content

MyRA: Difference between revisions

Add links
From Wikipedia, the free encyclopedia
Browse history interactively
← Previous editNext edit →
Content deleted Content added
VisualWikitext
LavaBaron (talk | contribs)
17,075 edits
added Comerica
LavaBaron (talk | contribs)
17,075 edits
added section "response"
Line 12: Line 12:


Households making under $191,000 a year could open a myRA account, up to $15,000 over 30 years and "will earn a variable interest rate similar to the Thrift Savings Plan Government Securities Investment Fund".<ref name="OBAMA SIGNS EXECUTIVE ORDER SETTING UP 'MYRA' RETIREMENT ACCOUNTS.2"/> Details "will be finalized by December 31, 2014".<ref name="OBAMA SIGNS EXECUTIVE ORDER SETTING UP 'MYRA' RETIREMENT ACCOUNTS.2"/> Employers will not contribute to or administer employees' accounts; they will only facilitate the setup of employees' payroll direct deposits.
Households making under $191,000 a year could open a myRA account, up to $15,000 over 30 years and "will earn a variable interest rate similar to the Thrift Savings Plan Government Securities Investment Fund".<ref name="OBAMA SIGNS EXECUTIVE ORDER SETTING UP 'MYRA' RETIREMENT ACCOUNTS.2"/> Details "will be finalized by December 31, 2014".<ref name="OBAMA SIGNS EXECUTIVE ORDER SETTING UP 'MYRA' RETIREMENT ACCOUNTS.2"/> Employers will not contribute to or administer employees' accounts; they will only facilitate the setup of employees' payroll direct deposits.

==Response==
A 2014 survey found that 78-percent of [[Millenials]] would enroll in a myRA if eligible.<ref>{{cite news|last1=Fairley|first1=Juliette|title=78% of Millennials Anticipate Investing in President Obama's myRA|url=http://www.mainstreet.com/article/78-of-millennials-anticipate-investing-in-president-obamas-myra|accessdate=18 December 2014|work=Mainstreet|issue=15 January 2015}}</ref>

The myRA has been criticized for the low returns it will offer. <ref>{{cite news|title=12 things you should know about the myRA|url=http://blogs.marketwatch.com/encore/2014/02/04/12-things-savers-should-know-about-the-myra/|accessdate=15 January 2015|work=Marketwatch|date=4 February 2014}}</ref> [[CNBC]] has noted that "overcoming the traditional IRA $1,000 minimum may not be just one of the reasons for low-income workers to invest in a myRA—it may be the only reason."<ref>{{cite news|last1=Schwartz|first1=Shelly|title=Low-cost IRA alternatives to President Obama’s myRA|url=http://www.cnbc.com/id/101428967#.|accessdate=15 January 2015|work=CNBC|date=20 February 2014}}</ref>


==References==
==References==

Revision as of 08:51, 15 January 2015

myRA ("my retirement account") is a special type of Roth IRA account sponsored by the United States Treasury and administered by Comerica.[1][2]

MyRA is a component of the U.S. government's "Opportunity for All" plan, which has a goal of "ensuring middle class Americans feel secure in their jobs, homes and budgets."[3]

President Obama signing MyRA at the Irvin Plant of U.S. Steel near Pittsburgh.

History

The myRA program was announced on January 28, 2014, by President Barack Obama during the 2014 State of the Union Address, stating:[1][4][5]

"Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in." - President Obama

The President signed the memo in a public ceremony at U.S. Steel's Irvine plant in the Pittsburgh suburb of West Mifflin, Pennsylvania on January 28, 2014.[1][6][7] On December 15, 2014, the United States Department of the Treasury published the final regulations governing the myRA accounts.[8]

Program specifics

The myRA is a "new type of saving bond that we can set up without legislation"[1] guaranteed to have a decent return, by holding an "add on" Treasury security in a Roth IRA,[9] with contributions after taxes and the income will be tax-free until you retire. The maximum annual contribution is $5,500. When a myRA account reaches either $15,000 in value or 30 years of age (whichever comes first), it will roll into a private-sector retirement account.[10] There is no cost to open a new account, and ongoing automatic payroll deductions to fund a myRA can be "$50, $25, $7—any amount!".[10]

Households making under $191,000 a year could open a myRA account, up to $15,000 over 30 years and "will earn a variable interest rate similar to the Thrift Savings Plan Government Securities Investment Fund".[1] Details "will be finalized by December 31, 2014".[1] Employers will not contribute to or administer employees' accounts; they will only facilitate the setup of employees' payroll direct deposits.

Response

A 2014 survey found that 78-percent of Millenials would enroll in a myRA if eligible.[11]

The myRA has been criticized for the low returns it will offer. [12] CNBC has noted that "overcoming the traditional IRA $1,000 minimum may not be just one of the reasons for low-income workers to invest in a myRA—it may be the only reason."[13]

References

  1. ^ a b c d e f Shreve, Meg (January 2014). "OBAMA SIGNS EXECUTIVE ORDER SETTING UP 'MYRA' RETIREMENT ACCOUNTS". Tax Notes Today (2014 TNT 20-6).
  2. ^ "Dallas Firm Will Manage New U.S. Retirement Savings Program". Financial Advisor. 22 December 2014. Retrieved 15 January 2015.
  3. ^ My-RA.info, What is MyRA?
  4. ^ Matthew Yglesias, What's the Deal With Obama's New MyRA Plan?, Slate, 28 January 2014
  5. ^ Announcement from the U.S. Treasury
  6. ^ C-SPAN coverage 24:50-25:25
  7. ^ http://livewire.wtae.com/Event/President_Obamas_Pittsburgh_Visit/103828239
  8. ^ "Regulations Governing Retirement Savings Bonds" (PDF). Federal Register. 79 (240). 15 December 2014. Archived from the original (PDF) on 2015-01-07. Retrieved 2015-01-07. {{cite journal}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  9. ^ http://www.myra.treasury.gov/readysavegrow/myra/myra_top_questions.htm#Questions1
  10. ^ a b http://www.myra.treasury.gov/readysavegrow/myra/myra_top_questions.htm#Questions5
  11. ^ Fairley, Juliette. "78% of Millennials Anticipate Investing in President Obama's myRA". Mainstreet. No. 15 January 2015. Retrieved 18 December 2014.
  12. ^ "12 things you should know about the myRA". Marketwatch. 4 February 2014. Retrieved 15 January 2015.
  13. ^ Schwartz, Shelly (20 February 2014). "Low-cost IRA alternatives to President Obama's myRA". CNBC. Retrieved 15 January 2015.
Retrieved from "https://en.wikipedia.org/w/index.php?title=MyRA&oldid=642578683"