What is the myRA?
The myRA is a Roth-structure retirement savings account targeted at low-income households and those without access to an employer-sponsored plan.
Launched in December 2014 by executive order, the myRA program is a savings plan offered by the US Treasury that’s intended to encourage retirement saving among low-income individuals lacking employer-sponsored accounts or other convenient saving options. As of March 2016, 10,000 people opened a myRA account, with a median monthly contribution of $50. MyRAs have a Roth IRA structure and follow more or less the same rules as private-sector Roth IRAs. The sole investment available is a new Treasury security that earns the same interest rate as the government bond fund available to federal employees.
After accounts reach a maximum balance of $15,000 or have been in existence for 30 years, savings must be rolled over to a Roth IRA in the private sector. Currently, the only way for an individual to contribute funds to a myRA account is to establish a direct-deposit system with an employer. MyRAs do not have start-up fees or account maintenance fees.
US Treasury Department. MyRA website.