Sad news has emerged of the death of MyRA… Born in late 2014 to little or no notice, the MyRA was conceived as a way for those unable to participate in a 401k to be able to have a retirement account (though limited), run by the U.S/ Treasury. It allowed for relatively small contributions to be made with limited balances and time constraints, paying a guaranteed rate of return. (see Nov 2015-Big news-The MyRA
In July 2017, after exclaiming her intent to do all she can to promote retirement savings for all, devoting substantial time and energy to the endeavor; the U.S. Treasurer announced ending the program.
Lack of participation and high costs are likely reasons for its demise..perhaps if it was marketed better…..none the less….farewell MyRA
Fear not America, Credit Unions are alive and well in the U.S. and welcome all with open arms, providing financial help from Savings, to IRAs, Loans, even Mortgages; all with hometown service, An account can be opened with as little as $5, and every member of the family can become a member. ! ! ! !
But wait…DOCTOR…a slight Heartbeat detected!! It seems that what the Federal Government couldn’t do, the States are willing to attempt. That’s right, the State of Oregon recently passed legislation (phased in over 2 years) allowing Employers to enroll in a State sponsored retirement plan for employees who have no access a retirement plan at work, such as a 401k. An employee of such a company, will automatically be enrolled in a Roth Ira plan withholding 5% (initially), as contribution to a chosen plan, through payroll deduction. The cost will be covered by an annual fee of 1% on the account balance. In Oregon, this means that 1 Million workers can now have the chance to contribute to a retirement plan (their Employer having enrolled), with contributions made via auto payroll deduction.
And, they’re not alone, as many as 15 States have some form of State sponsored retirement savings initiatives under consideration, including New York, whose 2019 Budget includes creation of a Secure Savings Program with a potential of helping some 3 Million workers……….. Kudos’ States!!
Cents Maker