President Barack Obama signs the Executive Order instructing Treasury to create myRA during an event at the United States Steel Corporation Irvin Plant in West Mifflin, Penn., Jan. 29, 2014. (Official White House Photo by Pete Souza)
In his 2014 State of the Union address, President Obama announced myRA (My Retirement Account) as a “new way for working Americans to start their own retirement savings.” Based on independent analysis, approximately half of all workers and 75 percent of part-time workers lack access to employer-sponsored retirement plans. To help encourage retirement savings, Treasury is developing the myRA program, a simple, safe, and affordable retirement savings option available through employers to help more Americans begin to save for retirement. myRA will launch in late 2014 and will offer a safe investment backed by the U.S. Department of the Treasury. The account will earn interest at the same variable rate available to federal employees for their retirement accounts and follow the same rules as a Roth IRA. myRA aims to give working Americans a way to begin saving for a secure financial future. myRA accounts have no fees, have no cost to open, and balances will never go down in value.
Key features of the myRA program include:
- Deposits are automatic every payday
- Portable – not tied to a single employer
- Contributions can be withdrawn tax free
- Earnings can be withdrawn tax free after five years and the saver is 59½
- Will never go down in value
- Low risk
- Information is private and secure
- Backed by the U.S. Treasury
- No cost to open an account
- Contribute any amount ($50, $25, $7)
- No fees
- Roth IRA tax advantages
To learn more about myRA, visit Treasury's Ready, Save, Grow website.