Employers can avoid offering myRA

February 4, 2016

The Department of the Treasury says that employers will not “have” to offer the new retirement savings account “myRA” to their employees.

Employers don’t have to offer myRA:

The myRA program is expected to fill out a big hole for all the workers and the employers collectively. All the employees that don’t qualify for the existing retirement plans of their employers will be eligible to get their hands on myRA and make some contributions to their post retirement funds.

The sole purpose of the account, as indicated by the treasury department is not to replace the DC plan but the main reason for it to get introduced was so that the workers who don’t have any retirement plans available can get something going for them as well. In the beginning, those employers who want to offer myRA will make their employees aware and will offer them the required details and the employees will then be able to enrol once the accounts become available. The minimum contribution will be 25 dollars.

The employer can then also make the decision of automatically deducting amounts from the pay checks of their employees. These contributions can be as less as 5 dollars and the account can also be ported and is of course not limited to just one employer.

We are going to be presented with the account probably by the end of this year.