In his 2014 State of the Union message, President Obama announced a new retirement savings program for people who do not curr...Read more
Retirement Savings Program for Lower-Income Earners Is Ending
- November 28th, 2017
The Trump administration is ending an Obama program that was designed to be a starter retirement savings account for low- and middle-income workers. The Trump administration’s Treasury Department determined that the program, known as myRA, was not cost effective.
Similar to a Roth IRA, the myRA accounts allowed workers to invest money after tax and withdraw the money in retirement tax-free. Unlike a Roth IRA, however, the savings were backed up by U.S. Treasury bonds, so investors would never lose their principal investments. The accounts were available to married couples with modified adjusted gross incomes up to $191,000 and to individuals earning up to $129,000 and could be opened with as little as a $25 investment. Once a worker had saved $15,000, the saver would have to roll the account into a Roth IRA.
Local Elder Law Attorneys in Ashburn, VA
The Estate Planning & Elder Law Firm PC
Bill founded The Estate Planning & Elder Law Firm, P.C. in 1994. Bill limits his practice to the areas of estate planning and administration, incapacity planning, Medicaid, asset protection planning, and elder law. He is one of (15) fifteen attorneys practicing in Virginia, Maryland and the District of Columbia, ce...
Hale Ball Carlson Baumgartner Murphy PLC
Loretta Morris Williams is a certified elder law attorney by the National Elder Law Foundation. Ms. Williams was admitted to the Council of Advanced Practitioners, National Academy of Elder Law Attorneys (NAELA) in 2012. She serves as President of the Virginia Academy of Elder Law Attorneys. Ms. Willia...
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
After reviewing the myRA program, the Treasury Department announced that it was too expensive to keep running. According to the department, it would cost $10 million a year to manage the program and there is not enough demand to justify the cost. Since the program began in 2015, around 20,000 accounts were opened, with a total of $34 million invested and a median account balance of $500. An additional 10,000 accounts have zero balance.
MyRA account holders will now have to roll their account into a Roth IRA or close the account. Note that if the account is closed without rolling it over to an IRA, any earnings will be subject to income tax. For more information about the end of the myRA program, go here: https://www.myra.gov.
Last Modified: 11/28/2017