MyRa is For People Without a 401(k) or any Other Plan

MyRa (short for My Retirement Account) is Obama’s retirement account which is being dubbed as a guaranteed return generator. The program was launched nationwide in the beginning of November. This government supported plan is one of the options for many people who do not have a savings plan for retirement. MyRa accounts can be opened by anyone earning a salary of lower than $131,000 or $193,000 if they prepare taxes jointly with their partner.

This program does not have a minimum limit for opening an account like it is with the IRA; on top of that, no fee is charged when you decide to open. The payments shift to the account automatically, directly from a savings account, direct deposit, or an employer’s payroll system.

However, a MyRa is not likely going to return what you may get from one stock fund in time. However, workers should not feel threatened from losing the nest egg. The plan can only be invested in a US Treasury and is guaranteed to not lose value. The good thing is that users can easily access their money in case of any unforeseen emergency.

The MyRa works similar to the 401(k), just without the important match that businesses add on worker contributions. But this is successfully a Roth IRA with assistance of money (after tax) that users can withdraw.

The MyRa.gov is the program’s online platform that acknowledges how an interest earned happens to be same as the investments that are in the Government Securities Fund, which gained a median annual return of 3.19% in ten years time last year.

In the last 5 years, this rate has come down to just slightly over 2%, according to officials at the US Treasury. They also noted that the quantity is surprisingly more than what many users can gain from standard savings accounts.

Users are able to put away around $5,500 annually, and those people, who are or will be 50 years old by the year’s end they can put in up to $6500. This guaranteed result lasts until the people accumulate $15,000 in this program or have had the MyRa for around 3 decades at which point they will have to shift the money to a private sector program like Roth. The users are at liberty to move their money at any point in time to an external retirement product.