Treasury ends myRA retirement savings program

By Alistair M. Nevius

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.

Newsletter Articles

SPONSORED REPORT

Tax reform changes are now in effect

With all the recent tax law changes, this year it’s more important than ever to make sure your clients’ tax situations are squared away before year end. This report provides necessary guidance to ensure 2019 starts without a hitch.

DEDUCTIONS

Understanding the new Sec. 199A business income deduction

The new deduction allows certain business owners to keep pace with the significant corporate tax cut provided by the Tax Cuts and Jobs Act.