Comerica will serve as custodian for the Treasury Department’s upcoming “myRA” retirement savings bond program, which is being rolled out in phases.
The idea for what a senior administration official called a “starter IRA” was first raised by President Barack Obama in his January State of the Union address as a way to reach low- and middle-income workers and others not saving for retirement.
Employers can choose to participate, but do not administer or contribute to the accounts, which are offered as a Roth individual retirement account managed by a third party for the federal government, which guarantees the principal. The interest rate would be based on the $404 billion Thrift Savings Plan’s G Fund, which uses rates based on a four- to 30-year average maturity.
Households with income of up to $191,000 can open accounts with just $25 and make contributions of as little as $5 through payroll deductions. Once an account reaches $15,000 or has been open for 30 years, the money would have to be rolled over into a private-sector Roth IRA. Balances may also be rolled over to a Roth IRA before the limit is reached.
Comerica was chosen through a competitive bid process managed by Treasury’s Bureau of the Fiscal Service. Comerica and its partner, Fidelity National Information Services, will administer the accounts, a Treasury spokesman said.
Comerica spokesman Wayne Mielke referred calls to Treasury officials.