President Obama announced a new retirement program called myRA in his State of the Union Address. We are eager to learn the details but from what was on PBS Nightly Business Report tonight here are some preliminaries. (More details are welcome when they become known.)A Roth IRA like savings program to be available to people who do not have a 401k plan. It's an employer program.Eligible to participate with income up to $129K single or $191K married.Can begin program with as little as $25.Money is invested in the Government Secure Income Fund and govt guaranteed. This fund is currently available only to federal employees.When account balance reaches $15K it can be rolled over to an IRA (?Roth IRA)As with the Roth IRA, the money is taxfree when distributions are taken according to the rules in retirement. No information on deductibility of contributions but as with Roth, probably not deductible.The program is being initiated by executive order and will be a pilot at a few employers initially. Google search turned up a few articles. Here is one on Money.com--http://money.cnn.com/2014/01/29/retirement/myra-accounts/Same contribution limits as IRAs. $5500/yr or ?$6500/yr over 50 yo.Money will be in govt bonds earning abt 2% at present. Govt guaranteed, but not much growth potential. Can rollover after 30 yrs if below $15K.
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