Say Goodbye to the myRA Account
On July 28, the Treasury Department announced that it was ending the myRA program. The Department issued a very brief statement saying that as part of the Administration’s effort to assess existing programs and promote a more effective government it was determined that this program was not “cost effective” due to its low enrollment.
The myRA program was introduced during the Obama administration as a way for low-income earners with no access to an employer plan to begin saving for their retirement. It had low minimum contributions and a guaranteed return on savings. It was also guaranteed by the U.S. government to never lose the individual’s savings. According to the Treasury Department’s statement “Fortunately, ample private sector solutions exist, which resulted in less appeal for myRA.”
The myRA thus goes the way of federal regulations encouraging state and city sponsored IRAs for those who have no access to employer sponsored retirement plans. It is up for debate as to why the current administration is opposed to encouraging retirement savings for this segment of the population.
Current participants in the myRA program are being notified of the changes and will be provided with information on rolling over their myRA savings to another Roth IRA in the private sector.