Millions of Americans, including Veterans, face challenges in saving for retirement. According to a 2015 Federal Reserve Report, 31 percent of non-retired individuals said they have no retirement savings or pension whatsoever. Part of the challenge is that many Americans around the country lack access to a retirement savings plan, like a 401(k), through their current employer. To help more Americans start saving for the future and remove common barriers to saving, the U.S. Department of the Treasury created myRA, a simple, safe and affordable retirement savings account.
myRA is designed for workers who don’t have access to retirement savings plans at work, or who lack other options to save. It costs nothing to open an account, there are no fees, and there is no risk of losing money. Your myRA funds are invested in a U.S. Treasury savings bond that earns interest at the same rate as investments in the Government Securities Fund available to federal employees.
myRA has certain tax advantages, and, if you are hesitant to start saving for retirement because of unexpected expenses that might come up, rest assured that you can access the money you’ve deposited if you need to. Individuals can roll over their myRA funds into a private-sector Roth IRA at any time or when the account reaches the maximum balance of $15,000, or a lower balance for up to 30 years. If you’re a Veteran and don’t have access to an employer-sponsored retirement plan through your current employer, myRA may be a great option for you to start saving.
Sign up today or learn more at myRA.gov, or call 855-406-6972 to speak with a myRA representative.
Richard Ludlow serves as executive director of the myRA program within the U.S. Department of Treasury. He comes to myRA with experience as a founder and executive in Silicon Valley, where he managed the launch and growth of new initiatives in education and healthcare. Richard is a graduate of Yale University and Harvard Business School.