The myRA: No need to wait any longer
Tax Tip of the Week
December 14, 2015
The myRA: No need to wait any longer
Have you started saving for retirement yet? Maybe the answer is no because you're waiting for an account that costs nothing to open, lets you start saving with any amount that fits your budget, and has no fees. If that's the case, a myRA may mean your waiting days are over, especially since the Department of Treasury recently added new ways to fund these accounts.
- What's a myRA? "myRA" is an acronym for "my Retirement Account." You can open a myRA even if you have other retirement accounts. myRAs generally follow Roth IRA rules, though there are differences. For example, one difference is the way money you deposit in your account is invested. Contributions to your myRA are invested in a new electronic U.S. Treasury savings bond. The balance in your account earns interest and is guaranteed to retain its value.
- How much can be contributed each year? myRAs are subject to the same income and contribution limits as regular Roth accounts. That means when you're single and earn less than $131,000 during 2015 ($193,000 for married filing jointly), you can make a full or partial contribution. The maximum contribution to a myRA for 2015 is $5,500 ($6,500 when you're over age 50).
- How can you take advantage of a myRA? You set up your myRA account online at the Treasury Department website, myra.gov. You can choose to fund your account from your paycheck by completing a direct deposit authorization form and giving it to your employer. You also have the option of making direct deposits from a checking or savings account or from your federal income tax refund.
If a myRA sounds like the retirement option you've been waiting for, please give us a call for more details.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
© MC 2015
December 14, 2015
The myRA: No need to wait any longer
Have you started saving for retirement yet? Maybe the answer is no because you're waiting for an account that costs nothing to open, lets you start saving with any amount that fits your budget, and has no fees. If that's the case, a myRA may mean your waiting days are over, especially since the Department of Treasury recently added new ways to fund these accounts.
- What's a myRA? "myRA" is an acronym for "my Retirement Account." You can open a myRA even if you have other retirement accounts. myRAs generally follow Roth IRA rules, though there are differences. For example, one difference is the way money you deposit in your account is invested. Contributions to your myRA are invested in a new electronic U.S. Treasury savings bond. The balance in your account earns interest and is guaranteed to retain its value.
- How much can be contributed each year? myRAs are subject to the same income and contribution limits as regular Roth accounts. That means when you're single and earn less than $131,000 during 2015 ($193,000 for married filing jointly), you can make a full or partial contribution. The maximum contribution to a myRA for 2015 is $5,500 ($6,500 when you're over age 50).
- How can you take advantage of a myRA? You set up your myRA account online at the Treasury Department website, myra.gov. You can choose to fund your account from your paycheck by completing a direct deposit authorization form and giving it to your employer. You also have the option of making direct deposits from a checking or savings account or from your federal income tax refund.
If a myRA sounds like the retirement option you've been waiting for, please give us a call for more details.
"Tax Tips" are published weekly to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
