The MyRA, introduced by President Obama in his State of the Union address, will be formally unveiled later this year. The Obama administration hopes this new deal will spur retirement savings by those who aren’t being diligent now, especially younger workers. It closely resembles the Roth IRA and features the same $5,500 contribution limit for 2014 ($6,500 if age 50 or older).
As with Roth IRAs, availability will be phased out for upper-income taxpayers. Accounts can be opened for as little as $25 and future payouts may be tax-free.
One catch: When the MyRA hits $15,000, you’ll have to roll it over into a regular IRA.
- Small Business Tax Deduction Strategies No matches