To make it easier for low- and middle-income people to participate, myRAs will require an initial investment of as little as $25 and payroll deductions as low as $5. Participation will be voluntary, and employees are free to opt out. The accounts will earn interest at the same variable interest rate that applies to the Thrift Savings Plan Government Securities Investment Fund that exists for federal employees. Employees who change jobs will be allowed to keep their myRAs or roll them into a private-sector retirement account. MyRAs would be available to households earning up to $191,000 a year ($129,000 a year for individuals). Participants’ total contributions will be capped at $15,000 and the accounts will last only up to 30 years. After reaching the total contribution limit or 30 years, participants will roll the accounts into a private-sector retirement account, such as a Roth IRA. The president has directed Treasury within 90 days to begin developing a pilot project to make myRA accounts available and to finalize development by Dec. 31, 2014.
Posted on: Fri, 31 Jan 2014 13:18:29 +0000
Trending Topics
Recently Viewed Topics
© 2015