By myRA.gov
This month, we’re celebrating National Women’s Small Business Month, and it’s a great time to think about how you can help your employees plan for the future. Millions of Americans are unprepared for retirement. Many don’t have access to a retirement savings plan through their job or have found it difficult to start saving. myRA (my Retirement Account) was developed by the U.S. Department of the Treasury to help people take a simple step toward a more secure retirement. That’s why NAWBO is proud to support myRA.
Who is myRA for?
myRA could be a good option for people who don’t have access to a retirement savings plan at work—like small business employees, part-time and temporary workers. It was designed to remove common barriers that keep people from saving and to give them a simple, safe and affordable way to get started. Key features of myRA include:
- No cost to open and no fees
- No risk of losing money
- Investment is backed by the U.S. Treasury
- Savers choose how much to save ($2, $20, $200, whatever fits their budget)1
- If an employee changes jobs, the account stays with them
- The account safely earns interest2
- Savers can withdraw the money they put in without tax and penalty2
myRA is a great way for people to start building a savings habit. They can transfer or roll over their savings to a private sector Roth IRA1 at any time where there are other opportunities to invest and continue to grow their savings.
What do employers need to know?
myRA provides employers with an easy way to help their employees start saving. There’s no cost to employers. They do not manage employee myRA accounts, contribute to them or match employee contributions.
Employers simply tell their employees about myRA and then facilitate a payroll deduction from the employee’s paycheck to the designated myRA account in the amount the employee chooses.
Learn more
Visit myRA.gov today to learn how you can help your employees get on the path to retirement saving. Free resources are available for download that can help you share myRA information. If you have questions, please contact the myRA Outreach and Employer Support Office at (844) 874-7590 or send an e-mail to [email protected].
For more information, go to myRA.gov.
————————————————————————————
1Annual and lifetime contribution limits and annual earned income limits apply, as do conditions for tax-free withdrawal of earnings. Limits may be adjusted annually for cost-of-living increases. To learn about key features of a Roth IRA and for other requirements and details, go to myRA.gov/roth-ira.
2Withdraw interest earned without tax and penalty five years after your first contribution if you are over age 59 1/2 or meet certain other conditions, such as using the funds for the purchase of your first home. Accounts earn interest at the same rate as investments in the Government Securities Fund, which had an average annual return of 3.19% over the 10-year period ending December 2014.