New IRA for Small Employers

by | Jul 9, 2014 | Tax and Accounting Desk

The Department of Treasury is working on a program for employee retirement savings for small employers and employers with no retirement plan.

“The U.S. Department of the Treasury will develop the myRA (“My Retirement Account”) program, offering a new retirement savings account for individuals looking for a simple, safe, and affordable way to start saving.”

The biggest difference between this program and others is the deposited funds will be backed by the U.S. Treasury. myRA will also earn interest at the same rate as government securities in the Thrift Savings Plan for federal employees.

Even though deposits will be made through the employer, this account “belongs” to the individual employee. Thus it “moves” with the employee if he/she goes to a different employer.

The plan is limited to annual income limitations: $129,000 for individuals and $191,000 for joint filers. The account can open with as little as $25, and deposits amounts start at $5.00 a payday.

For more information see: http://www.treasurydirect.gov/readysavegrow/

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