Most older adults have limited savings. But, it’s estimated that seven out of ten older adults will need long-term services and supports at some point in their lives, typically for three years. If family and friends are unable to provide care services, the costs can be high. Beginning this month, the U.S. Treasury offers people myRA, a new way to save for retirement.
What is myRA? MyRA is a retirement savings account that allows you to save up to $15,000. Your money is invested in a U.S. Treasury retirement savings bond.
What does it cost to set up myRA? There are no enrollment, money management or other costs or fees and no risk of losing money.
Can I lose money if I invest in myRA? You cannot lose money in myRA. Your savings are guaranteed by the U.S. Treasury and will grow over time. You will earn the same interest as federal employees who invest in the Government Securities Fund, which was 2.14 percent in 2014 and 3.19 percent over the ten years ending December 2014.To understand how your savings will grow, visit the U.S. Treasury MyRA site, here.
Who is eligible for myRA? MyRA is designed for people who do not have access to a retirement savings plan through their jobs.
How much money can you put into your myRA? MyRA gives you flexibility to save as little as you’d like and up to $5500 a year if you’re under 50 and $6500 a year if you’re 50 and over. You can save up to $15,000 in your myRA. After your account reaches $15,000 or after 30 years, your savings will be transferred to a private-sector managed Roth IRA.
How do you put money into your myRA? You can have your employer automatically deduct money from your paycheck for your myRA. Or, you can write a check whenever you’d like to your myRA account. You can also ask that a federal tax refund go to your myRA.
What happens if you leave your job? If you leave your job, your myRA leaves with you.