As we’ve discussed, the myRA is essentially a Roth IRA wrapped around a savings bond that will pay out at the same rate as the federal Thrift Savings Plan (TSP) G Fund.
These accounts, which will be managed by the Treasury and funded via payroll deduction, will be available to those who don’t have access to a workplace retirement plan and who fall below certain income requirements.
You will, of course, be able to roll your account over to a private sector custodian at any time. But once your account reaches a $15k balance (or you’ve been contributing for 30 years) you’ll be required to roll it over.
On the one hand, these accounts could serve as a gateway to more serious saving/investing for those who might otherwise not plan for the future. That’s a good thing. Then again, everyone who qualifies is already eligible for a Roth IRA.
So what do you think? Is the myRA worth getting excited about? Do you think it will have the desired effect of getting more people to save for the future? Or do you think it’s much ado about nothing?
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