MyRA Retirement Account Proposal
The myRA retirement savings is a new account to help Americans save for retirement. Some employers will offer it in late 2014.
- It is portable for the employee to take from one employer to the next
- The minimum initial contribution is $25, then at least $5 through payroll deductions
- The maximum contribution is $5,500 per year ($6,500 if over 50 years of age)
- Once the balance reaches $15,000 or has existed 30 years, it must be rolled into a Roth IRA
- Total annual contributions to all of an individual’s IRAs cannot exceed $5,500
- Like a Roth IRA, contributions will grow and be redeemable tax-free
- Principal can be redeemed anytime, but earnings withdrawn before age 59 ½ are taxable and subject to 10% penalty
- Only one investment is available: treasury bonds paying variable interest-rate return
Individual MyRA Retirement Account
Individuals earning up to $129,000 & couples earning up to $191,000 are eligible if their employers offer the account
