President Obama Makes Good on Promise to Help Americans Save for Retirement

Other things to know about myRA accounts:

• Savers choose the amount to contribute up to $5,500 per year or $6,500 per year for individuals who will be 50 years of age or older at the end of the year.
•  Savers can withdraw the money they put in without tax and penalty and can withdraw interest earned without tax and penalty under certain conditions.
• Savers can choose to transfer or roll over their account balance into a private-sector Roth IRA at any time.
•  myRA accounts can have a maximum balance of $15,000 or a lower balance for up to 30 years. When either of these limits is reached, the money is transferred to a private sector Roth IRA where savers have other opportunities to invest and grow their savings.

“The myRA is not a be-all, end-all solution, but it will facilitate retirement savings for millions of Americans that don’t currently have any at all…The goal is to get the ball rolling on retirement savings, not only by getting people to think about it, but by actually getting them to start saving,”  says Greg McBride, chief financial analyst at Bankrate.com.

“Americans who don’t have access to 401 (k)’s are not utilizing IRA’s enough. “If you have earned income, or a spouse that does, you are eligible to contribute to an IRA. Too many people are confused or misinformed about it, and as a result, don’t utilize one of the important tax-advantaged retirement savings options at their disposal.”