MyRA Accounts are Here, What You Need To Know
As similar to Social Security, MyRA is a retirement plan that the government has developed to help Americans save money. If you’ve been following the news lately, you know that MyRA isn’t something that politicians are just thinking about – the plan is now a reality.
But before you jump on the band-wagon with millions of other Americans, it is important that you know the facts. That’s why we’ve collected some important information (recently explained in an online CNN article) to help you better understand the new government retirement plan:
Who Can Use MyRA?
- Any worker may start a MyRA retirement account as long as their household income meets one of the following criteria:
- Married couple: less than $191,000 a year
- Individual: less than $129,000 a year
- Targets: Low- and middle-income Americans who don’t have access to employer-sponsored retirement plans.
- Invested in government bonds (only).
- Invest after-tax dollars. That means your withdrawals in retirement will be tax-free – similar to a Roth IRA. (The government gets your tax money NOW, instead of later.)
- Single year contribution: up to $5,000
- Maximum plan investment: $15,000 or 30 years active plan
- Small returns as long as interest rates are low.
- Once the account hits the maximum account balance of $15,000 (or has been active for 30 years), it must be rolled-over into a private-sector Roth IRA (to continue growing tax-free).
Planning your retirement shouldn’t be complicated. If you’re not sure what retirement plan is right for you or you’re unsure of the options available to you, contact us today to speak with a qualified retirement specialist. Call us at 614-536-0305 to schedule your FREE No-Obligation Consultation or click the orange “Get Started” button on your right.