August 08, 2017
On July 28, 2017, the U.S. Department of the Treasury (“the Department”) announced that it will begin to phase out the myRA program over the coming months after a thorough review found it not to be cost effective. This review was undertaken as part of the Trump administration’s effort to assess existing programs and promote a more effective government. According to the Department, demand for and investment in the myRA program have been extremely low.
As background, the myRA program was a concept first introduced by President Obama in his January 2014 State of the Union address. The program was an option for individuals who didn’t have access to a retirement savings plan (e.g., 401(k) plan) at work. In addition to setting up contributions via direct deposit through an employer, individuals could set up one-time or recurring contributions to their myRA from a checking or savings account. Savers could also direct all or part of a federal tax refund to their myRA.
As shared in the Feb. 11, 2014, and Nov. 17, 2015, editions of Compliance Corner, features of the myRA program included:
Participants in the myRA program are being notified of the upcoming changes, including information on moving their myRA savings to another Roth IRA. Participants are encouraged to visit www.myRA.gov for additional information or to call myRA customer support with any questions.
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