Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

The myRA: A new savings plan in the toolkit for beginners

See also

Capital Region families have a new option to begin the critical road to retirement savings--the myRA. That stands for My Retirement Account and is a twist on the well-known IRA or Individual Retirement Account. President Barack Obama announced the new payroll deductible savings vehicle in his State of the Union Address January 28.

Americans are not saving enough for retirement. At present, only 5 per cent are on track for a proper post-work world. myRA appears to be targeted toward lower-income workers who at present do not save for retirement through a plan available at work.

The myRA is to be offered through a Roth IRA type of vehicle. Features include:

  • a starting contribution as low as $25
  • a $15,000 limit on how much can be accumulated in the myRA over a period of 30 years.
  • once the balance is greater than $15,000, it would need to be transferred to “a private sector Roth IRA.”
  • income earners as high as $191,000, however, can open a myRA.

Given that the myRA is a Roth-type plan, existing laws governing Roth IRAs are likely to apply. Thus, contributions to the plan are not tax-deductible. However, earnings from investments in the myRA will accumulate tax free and distributions from the plan will not be taxed.

The myRA has only one investment option, a mix of Treasury bonds that is identical to the government bond investment option that now exists in the Thrift Savings Plan, a retirement savings plan for federal employees.

“It’s a beginner’s plan,” says Fred Elia, president of Schenectady-based non-profit, A Thousand Moms. “It’s intended to jump start savings among a group of people who don’t have retirement plans readily available to them.”



  • Mt. Everest avalanche
    Disaster strikes Mt. Everest as at least 12 people were killed in an avalanche
    Watch Video
  • Most Earthlike planet discovered
    The Kepler telescope has discovered the most Earthlike, possibly habitable planet yet
    Space News
  • Easter crosses create debate
    Easter crosses spark a debate of separation of church and state in Ohio
  • Chelsea Clinton is preggers
    Former first daughter Chelsea Clinton is pregnant with her first child
  • Stanley Cup playoffs
    The battle for Lord Stanley's Cup is on, don't miss a minute of playoff action
  • Ukraine discussed amongst U.S., E.U., Russia
    The U.S., E.U. and Russia agree on ways to diffuse the tension in Ukraine
    Watch Video

Related Videos:

  • Office building
    <iframe width="420" height="315" src="//;autoplay=1"></iframe>
  • How New Trend Toward Investing in Human Capital Could Help TX Students
    <iframe width="420" height="315" src="//;autoplay=1"></iframe>
  • New jobs coming to Schenectady
    <div class="video-info" data-id="518166850" data-param-name="playList" data-provider="5min" data-url=""></div>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about and apply today!