Would President Obama’s MYRA proposal work for you?

Only if you are not able to participate in an employer sponsored plan. Also you would have to roll it into a Roth account once it reached $15,000. This is really for people who have no access to a 401k plan and can only afford to put in a very small amount of money each week. This is only a proposal and no one knows if it will become a reality or not. Here are the details from Business Insider:

  • MyRA would be a program of small Roth IRAs with access to a special, safe investment that pays a little better than Treasury bills. Remember, a Roth IRA is a retirement account where you contribute after-tax earnings, and can then withdraw money in retirement without ever paying tax on your investment returns.
  • Employers wouldn’t run or fund the accounts, but they’d participate by letting employees fund them through payroll deductions, which could be as small as $5 per pay period.
  • Almost any employee of a participating employer could join. You just have to make less than $191,000.
  • Accountholders could accrue balances of up to $15,000, at which point they’d have to roll the balance over into a regular, private Roth IRA. Voluntary rollover and withdrawal would be availalble anytime, and it looks like normal Roth IRA withdrawal penalty rules would apply.

Read more:  http://www.businessinsider.com/obama-myra-retirement-heres-what-you-need-to-know-2014-1#ixzz2roX6Q5sR

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