Due to “extremely low” demand and high costs, the Treasury Department announced on Friday that it is ending the myRA retirement savings program. Treasury says it is notifying participants about the ending of the program and giving them information on how to move their myRA savings into Roth IRAs.
In a prepared statement, Jovita Carranza, the U.S. Treasurer, said that “there has been very little demand for the program, and the cost to taxpayers cannot be justified by the assets in the program.” According to Treasury, the program has cost nearly $70 million since 2014.
The myRA program was started in 2015. MyRAs are government-sponsored Roth IRAs. Accounts hold only one type of investment, a Treasury security earning the same variable interest rate paid by the Government Securities Investment Fund in the Thrift Savings Plan for federal employees. The accounts have the same contribution limits and withdrawal rules as private-sector Roth IRAs, except myRA accounts are limited to a maximum balance of $15,000.
—Alistair Nevius (Alistair.Nevius@aicpa-cima.com) is The Tax Adviser’s editor-in-chief, tax.