In his recent State of the Union address, President Obama proposed a new retirement savings vehicle that he called a “MyRA“. This new product will target Americans who do not have access to workplace retirement plans.
Unlike an employer-based plan, savers will benefit from principal protection and contributions can be withdrawn at will. Savers will have the option of keeping the same account when job changes occur and can roll the balance into a private sector retirement account at any time. The funds would be invested only in U.S. government bonds. Additionally, the plans would have a maximum balance of $15,000, after which the money would have to be rolled over into a private-sector Roth IRA.
This “MyRA” proposal is definitely something to watch.
Saving for retirement is crucial to making the rest of life, the best of life. Kasperek & Co Accountants can help with your retirement tax planning needs.