myRASM: My Retirement Account
WHAT YOU NEED TO KNOW
The U.S. Department of the Treasury will develop the myRA (“My Retirement Account”) program, offering a retirement savings account for individuals looking for a simple, safe and affordable way to start saving. Beginning in late 2014, savers will be able to open an account with as a little as $25 and contribute $5 or more every payday. myRAs will be initially offered through employers, balances will never go down, and there will be no fees. myRAs will hold a new retirement savings bond that will be backed by the U.S. Treasury.
Key features include:
- As little as $25 to open an account.
- Add to savings through regular payroll direct deposit –$5 or more every payday.
- No fees.
- myRAs will earn interest at the same variable rate as the Government Securities
- Investment Fund in the Thrift Savings Plan for federal employees.
- myRAs will not be limited to one employer – the account will be portable.
- myRA contributions can be withdrawn tax free.
- Earnings can be withdrawn tax free after five years and the saver is 59½.
- Account holders can build savings for 30 years or until their myRA reaches $15,000 – whichever comes first. After that, myRA balances will transfer to private-sector Roth IRAs.
If you have additional questions, check out the Top Questions and Answers about myRA.
For more information, call (800) 553-2663.