31 Jan / MyRA
President Obama signed an executive order of January 29, 2014 creating the MyRA. It appears that its intention is to provide a low risk saving opportunity for those who do not participate in company run retirement plan. The annual limits on the contribution will be similar to that of the ROTH or the traditional IRA. Which would be $5,500 or $6,500 if you are over the age of 50. The MyRA currently has only one investment option. The President said that the rate of return would be equal to the Thrift Savings Plan’s Government Securities Investment Fund. That rate has averaged under 4% over the last decade. The MyRA contribution will be made with after tax dollars but grows tax free. It is subject to early withdrawal penalties if taken out prior to reaching the age of 59 1/2.
Tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.