The U.S. Treasury recently announced the full rollout of myRA, a new retirement savings account designed for people who don’t have access to a retirement savings plan at work or lack other options to save.
It is geared toward small savers. Contribution limit is $5,500 per year ($6,500 if over age 50). The money can stay in the account until it hits a maximum balance of $15,000 or 30-year lifespan, at which time it will be rolled into a Roth IRA.
There is no cost to open a myRA and there are no fees. The account allows savers to safely accumulate savings in government savings bonds until they can transition to a private sector Roth IRA, where they have more investment options and opportunities to continue to grow their savings.
Individuals have been able to open myRA accounts and fund them through payroll deduction since December 2014. Starting November 4, people now also have the option of setting up recurring or one-time contributions to their myRA from a personal account, such as a bank or credit union checking or savings account.
Additionally, myRA account holders now have the option of directing all or part of their federal tax refund to their accounts when they file their taxes.