Florida Elder Law & Estate Planning Blog
MyRA retirement savings program now terminated
September 3, 2017
The Obama Administration introduced the myRA program in 2014. Designed to help low- to middle-income earners with no workplace retirement plans begin saving for retirement, the myRA program was open to married couples and individuals with adjusted gross incomes up to $191,000 and $129,000, respectively. The no-fee accounts were a type of Roth IRA that could be opened with as little as $25, and were backed up by Treasury Bonds.
Now, the Trump Administration is discontinuing the program, citing insufficient participation. According to the Treasury Department, 30,000 accounts were established since 2015, with investments totaling $34 million. With total administrative costs at $10 million annually, the program is considered too costly to continue.
At this point, those with existing myRA accounts can close their accounts, paying income taxes on any earnings. Or, they can roll over their accounts into a traditional Roth IRA. The Treasury Department has instructions on how to proceed. Click here for more information.