More Americans will have access to a retirement savings account under the Treasury Department’s expanded myRA program.
MyRA — short for My Retirement Account — was launched in 2014 on a trial basis.
With the trial phase now concluded, the program is available nationwide with new funding options.
The expanded myRA aims to help workers with an annual income below $131,000 or $193,000 if married and filing taxes jointly, save by deducting a portion of their paycheck, checking or savings account or federal tax refund, to be invested in Treasury securities.
“As myRA account holders grow their savings, they have the option to transfer to a private-sector Roth IRA with diverse investment options at any time, or transfer to a private-sector Roth IRA once they reach the maximum myRA balance of $15,000,” said a news release from the Treasury Department.
“MyRA is designed to remove common barriers to saving, and give people an easy way to get started,” said Jacob J. Lew, Treasury secretary, in the news release. “MyRA has no fees, no risk of losing money and no minimum balance or contribution requirements.”
MyRA is a Roth IRA, however, and subject to certain requirements. While participants can contribute as little as few dollars a year, they can contribute no more than $5,500 per year or $6,500 per year if they will be 50 years of age or older by the end of the year.
Comerica administered the program during its trial phase.