myRA was announced very late in 2015 but the fame it garnered in the last few months was considerable. Everybody was talking about it and with the start of the New Year, it is a perfect time to know more about it. IF you are making your retirement plans and 2016 could be your year, then you are reading what you need to read; even if you plan to retire a little late then too you are in the right place, because this new Roth retirement account flavour is expected to last. Here are some of the details that make it one of the best retirement savings account that you can choose:
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
- Absolutely no fees involved. The government won’t even charge you a single dollar for the whole registration and maintenance process. This should be incentive enough, all things considered.
- The government insists that this account will never lose its worth. Whatever it’s valued at now, it can only get better or stay the same.
- There is one catch though; a treasury savings bond is the only investment option. Some facts about this bond are as follows:
- Your interest will not be taxed as long as it is within the account.
- No interest whatsoever will be taxed if you leave the account till you are 59 and a half years old.
- It has averaged around 3.2 percent in the last 10 years.
- You can make limited contributions to your myRA 5500 dollars per year for people who earn under 130,999.99 dollars per year and for couples earning 192,999.99 dollars per annum.
- If you are over 50 though you can contribute an extra thousand dollars.
- After 30 years of opening or if you have reached a balance of 15 thousand dollars, the money will get transferred to a private sector Roth account.
