Home|Our Difference|Our Services|Team LFA|Resources|Client Log-in|Contact Us|In the Community

Financial Briefs

More Articles  Printer Friendly Version

 

The myRa Is Cut Short, But Other Options Abound

The myRA is going the way of the VCR. Citing unsustainable costs, the Treasury Department has announced it is closing down the program for this retirement savings vehicle. Participants will be notified about their options for moving funds into other investments.

The myRA was pitched as a way for moderate-income people to save for retirement and was designed to resemble the Roth IRA.

Just as in a Roth IRA, MyRA contributions were made with after-tax dollars, and withdrawals from the account during retirement were exempt from federal income tax. Unlike with a Roth, however, the MyRA had only one investment option: U.S. government savings bonds. So, you weren't risking principal, but yields were low.

Contributions were limited to $5,500 a year ($6,500 if you were 50 or older), but availability of this saving vehicle was phased out for upper-income taxpayers. And once your account balance reached $15,000, you had to roll over the funds to a Roth IRA, letting you choose from a wider array of investment options.

According to the Treasury Department, the myRA program has cost taxpayers $70 million, with projections that it would take $10 million a year to keep it going. It made the decision in mid-2017 to shut down the program. Yet most retirement savers still have numerous other options at their disposal.


Email this article to a friend


Index
Foreign Intrigue In Estate Planning
6 Ways To Close The Retirement Gap
Are You "Rich" Or Not? New Survey Hits The High Points
Why Aren't More Millennials Moving On Up And Out?
Lending Money? Watch Your Tax Step
How To Spell Estate Tax Relief
Watch Out For "Grandparent Scams"

This article was written by a professional financial journalist for Larkspur Financial Advisors and is not intended as legal or investment advice.

©2017 Advisor Products Inc. All Rights Reserved.
© 2017 Larkspur Financial Advisors | 100 Tamal Plaza, Suite 110, Corte Madera, CA 94925 | All rights reserved
P: 415.924.6703 | F: 415.924.6723 Advisors@LarkspurFA.com |
Disclosure | Contact Us

Securities and advisory services offered through The Strategic Financial Alliance, Inc., (SFA), member FINRA/SIPC, which is otherwise unaffiliated with Larkspur Financial Advisors or LFA Holdings, Inc. Ronald Murphy, CLU, ChFC (CA Insurance License #0290052) is a Registered Principal and Investment Advisor Representative of SFA. J. Richard Arellano, CLU, ChFC (CA Insurance License #0186691), and Kevin Bartel (CA Insurance License #0J04584) are Registered Representatives and Investment Advisor Representatives of SFA.

We are licensed to sell Insurance Products in the following states: California, Florida, Georgia, Nevada, Oregon, Texas, Utah, and Washington.
We are licensed to sell Securities in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, and Washington.