55:
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RA account reaches either $ 15,000 in value or 30 years of age (whichever comes first), it will roll into a private-sector retirement account. The initial investment can be as low as $ 25, and one can make periodic investments for as little as $ 5 every time one gets paid. There was no cost to open a
257:
RA as something that "unnecessarily skims off of workers' wages so money managers can extract fees" (without addressing specifically what fees, if any, he would consider appropriate) and furthermore argues that
Americans don't need to save money due to "the vast majority of dollars digital entries
90:
Let's do more to help
Americans save for retirement. Today, most workers don't have a pension. A Social Security check often isn't enough on its own. And while the stock market has doubled over the last five years, that doesn't help folks who don't have 401ks. That's why, tomorrow, I will direct
139:
accounts with zero balances. As of that date, myRA participants had contributed $ 34 million to their myRA accounts since the program's inception. The
Treasury Department notified MyRA account holders of the phase out of myRA and encouraged account holder to move their myRA account balances to a
261:
However, the MyRA differs in that funds can only be invested in the "G" option of the government's Thrift
Savings Plan. This investment is guaranteed by the government and has a fairly low rate of return as it tracks government bonds. This makes the fund less than ideal for long term savings.
138:
In July 2017, the
Treasury Department announced that the program would be phased out in the following months due to lack of participation relative to the costs of maintaining it. At the time, there were 20,000 myRA accounts, and the median account balance was $ 500. There were also 10,000 myRA
421:
According to an official Social
Security webpage, the retirement benefit of Social Security is designed to replace about 40% of one's income during their working career, while financial planners recommend at least 70% of working income should be replaced in
550:
121:
on
January 28, 2014. In late 2014, a pilot version of the program launched with approximately 60 employers participating, allowing for testing and feedback. Approximately 3,000
711:
159:, with contributions after taxes and lifetime growth to be tax free. The maximum annual contribution is $ 5,500, including any Roth and Traditional IRA contributions. When a
637:
143:. The Treasury Department had spent an average of $ 23 million per year to maintain the program since its inception. Deposits are no longer accepted as of December 4, 2017
51:
RA was a component of the U.S. government's "Opportunity for All" plan, which has a goal of "ensuring middle class
Americans feel secure in their jobs, homes and budgets."
768:
228:
described the plan as "better than nothing -- but worse than most", in particular criticizing the lack of investment options (only the
Government Securities Fund of the
91:
the
Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It's a new savings bond that encourages folks to build a nest egg.
224:
RA were already available through other investment vehicles and lamenting the lack of hedge against inflation that can devalue government treasuries. An article on
164:
new account, and ongoing automatic payroll deductions to fund a myRA can be any amount. The only investment option was the G Fund of government securities in the
517:
155:
RA was a "new type of saving bond that we can set up without legislation" guaranteed to have a decent return, by holding an "add on" Treasury security in a
572:
599:
452:
542:
175:. Employers will not contribute to or administer employees' accounts; they will only facilitate the setup of employees' payroll direct deposits.
889:
821:
66:
In July 2017, the Treasury Department announced that the program would be phased out. Deposits are no longer accepted as of December 4, 2017
206:
has noted that "overcoming the traditional IRA $ 1,000 minimum may not be just one of the reasons for low-income workers to invest in a
847:
125:
RA accounts were opened during the pilot phase, and average individual contributions during the pilot were around $ 20-$ 50 per month.
940:
302:
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129:
37:
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RA for feeding "risky IRA-style investment accounts that divert savings into the stock market." An editorial by Jessie Myerson on
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Households making under $ 191,000 a year could open a myRA account, and invest with variable interest rates similar to the
619:
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354:
110:
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RA wasn't perfect, "anything that gets millions of people to start saving for retirement has to be a good thing."
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83:
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RA has been skeptically received by retirement planning professionals due to the low returns it will offer.
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The Treasury finally declared the program ready to use and available across the country in November 2015.
118:
733:
287:
Shreve, Meg (January 2014). "OBAMA SIGNS EXECUTIVE ORDER SETTING UP 'MYRA' RETIREMENT ACCOUNTS".
47:
A simplified retirement plan aimed at those who can afford only small monthly contributions,
20:
8:
172:
165:
678:
423:
191:
RA if eligible. An analysis by Wyatt Investment Research concluded that, while the
54:
44:. Richard Ludlow was the executive director of the program for the U.S. Treasury.
258:
in spreadsheets, spent into existence by the federal government by a keystroke".
225:
236:
which has average annual growth of about 10%), and $ 15,000 cap after which the
890:"Obama's MyRA Idea Is Redistribution of Wealth from Workers to Money Managers"
434:
220:
RA as "a decent idea, but not needed," noting that all of the benefits of the
929:
482:"Treasury Department announces national launch of myRA® Program - CUInsight"
657:
453:"Pittsburgh PA News, Weather and Sports - WTAE-TV Pittsburgh Action News 4"
398:
330:"After one year, 20,000 people are saving for retirement with Obama's myRA"
79:
600:
Treasury kills Obama IRA boondoggle, cost taxpayers $ 70M to manage $ 34M
184:
866:
638:"Treasury Finalizes Rules For New Retirement Savings Account: The myRA"
233:
114:
106:
95:
RA guarantees a decent return with no risk of losing what you put in.
791:
369:
704:"78% of Millennials Anticipate Investing in President Obama's myRA"
249:
156:
140:
41:
33:
620:
MyRA Post-Mortem: Treasury to Shut Down Retirement Savings Program
435:"President Speech Pennsylvania, Jan 29 2014 - Video - C-SPAN.org"
212:
573:"Trump administration ends low-income retirement savings plan"
303:"Dallas Firm Will Manage New U.S. Retirement Savings Program"
232:), low rate of return (about 2-3% annually vs. the benchmark
133:
published the final regulations governing the myRA accounts.
862:"What's the Deal With Obama's Starter Retirement Accounts?"
822:"myRA Not Needed: You Can Set Up Your Own Retirement Plans"
203:
78:
RA program was announced on January 28, 2014, by President
364:
362:
105:
The President signed the memo in a public ceremony at
792:"Low-cost IRA alternatives to President Obama's myRA"
918:
359:
62:
RA at the Irvin Plant of U.S. Steel near Pittsburgh.
543:"Government-backed myRA accounts are ready for use"
927:
503:"Regulations Governing Retirement Savings Bonds"
243:Some on the political left have criticized the
210:RA—it may be the only reason." John Wasik of
848:myRA: A Smart Option for Retirement Saving?
658:"What Is a myRA? - Simple. Thrifty. Living"
594:
592:
590:
395:What's the Deal With Obama's New MyRA Plan?
286:
761:"12 things you should know about the myRA"
789:
758:
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570:
240:Ra account stops accumulating interest.
53:
887:
859:
614:
612:
327:
183:A 2014 survey found that 78 percent of
168:for Federal and US Military employees.
32:("my retirement account") is a type of
928:
790:Schwartz, Shelly (20 February 2014).
624:Society for Human Resource Management
609:
146:
860:Zornick, George (29 January 2014).
701:
679:"myRA: What Employers Need to Know"
635:
411:Announcement from the U.S. Treasury
328:Lobosco, Katie (16 December 2016).
13:
888:Myerson, Jesse (3 February 2014).
759:Tergesen, Anne (4 February 2014).
540:
321:
14:
957:
910:
941:Obama administration initiatives
571:Davidson, Paul (July 28, 2017).
946:Retirement in the United States
881:
853:
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814:
802:from the original on 2014-02-20
783:
771:from the original on 2014-04-09
752:
734:"Is the Obama myRA a Bad Idea?"
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714:from the original on 2015-01-15
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671:
650:
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564:
553:from the original on 2016-04-06
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523:from the original on 2015-01-07
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84:2014 State of the Union Address
936:Individual retirement accounts
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347:
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1:
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710:. No. 15 January 2015.
370:"Deposits Ending December 4"
7:
178:
10:
962:
828:. No. 15 January 2015
127:On December 15, 2014, the
119:West Mifflin, Pennsylvania
69:
18:
850:, accessed 2 October 2016
516:(240). 15 December 2014.
253:, meanwhile, blasted the
36:account sponsored by the
58:President Obama signing
130:United States Treasury
103:
63:
38:United States Treasury
547:The Columbus Dispatch
374:Official MyRA website
88:
57:
21:Myra (disambiguation)
846:Simon, Helen (2015)
40:and administered by
19:For other uses, see
702:Fairley, Juliette.
604:Washington Examiner
230:Thrift Savings Plan
173:Thrift Savings Plan
166:Thrift Savings Plan
683:payroll.intuit.com
618:Miller, Stephen. "
393:Matthew Yglesias,
309:. 22 December 2014
216:characterized the
187:would enroll in a
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740:. 16 January 2015
626:. August 2, 2017.
401:, 28 January 2014
307:Financial Advisor
147:Program specifics
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919:Official website
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606:. July 28, 2017.
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100:President Obama
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911:External links
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897:. Retrieved
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660:. 2015-06-01
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641:. Retrieved
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577:. Retrieved
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555:. Retrieved
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525:. Retrieved
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486:. Retrieved
484:. 2015-12-23
476:
465:. Retrieved
461:the original
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389:
377:. Retrieved
373:
353:My-RA.info,
349:
337:. Retrieved
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80:Barack Obama
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27:
26:
25:
765:Marketwatch
744:10 February
718:18 December
575:. USA Today
422:retirement.
234:S&P 500
185:Millennials
111:Irvin plant
86:, stating:
82:during the
930:Categories
899:16 January
873:15 January
867:The Nation
832:30 January
806:15 January
775:15 January
708:Mainstreet
688:2016-09-02
664:2016-09-02
643:2016-09-02
557:2016-08-21
527:2015-01-07
488:2016-07-26
467:2014-01-30
439:C-SPAN.org
313:15 January
266:References
117:suburb of
115:Pittsburgh
107:U.S. Steel
379:1 January
334:CNN Money
894:Mediaite
800:Archived
769:Archived
712:Archived
579:July 28,
551:Archived
518:Archived
250:Mediaite
179:Response
157:Roth IRA
141:Roth IRA
98:—
42:Comerica
34:Roth IRA
339:11 July
113:in the
70:History
826:Forbes
738:NASDAQ
213:Forbes
521:(PDF)
506:(PDF)
399:Slate
901:2015
875:2015
834:2014
808:2015
796:CNBC
777:2015
746:2014
720:2014
581:2017
457:WTAE
381:2018
341:2018
315:2015
204:CNBC
198:The
151:The
74:The
622:".
602:".
109:'s
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892:.
864:.
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798:.
794:.
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Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
