Treasury to wind down the myRA retirement savings program

Paterniano Del Favero
Luglio 28, 2017

The Obama-era myRA program, which was designed for those who didn't have access to a 401 (K) or other retirement plan at work, is being shut down by the Treasury Department, reports the New York Times.

"Unfortunately, there has been very little demand for the program, and the cost to taxpayers can not be justified by the assets in the program", said U.S. Treasurer Jovita Carranza.

President Barack Obama delivers the State of the Union address at the U.S. Capitol in Washington, D.C., January 28, 2014. Two years later, only 20,000 had signed up.

Less than three years after it launched, a program created to encourage low-income people to save for retirement is being killed by the government. "Unfortunately, there has been very little demand for the program, and the cost to taxpayers can not be justified by the assets in the program".

The program is being eliminated as part of the deregulatory push prioritized by the Trump administration.

There was no minimum to open an account and employees had the option to fund it with automatic payroll deductions or by making payments directly from a checking or savings account.

And while myRA ultimately encouraged saving for retirement - which many Americans are not prepared for - it had its limitations, including an account cap at $15,000.

Treasury estimated that $70 million had been spent to manage the program since 2014. Going forward, the program would cost an additional $10 million in taxpayer funding each year.

"Fortunately, ample private sector solutions exist, which resulted in less appeal for myRA", Carranza said. "Demand for and investment in the myRA program has been extremely low", it said in a statement.

Participants in the myRA program are being notified of the upcoming changes, including information on moving their myRA savings to another Roth IRA.

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