Hey employers! Have you heard about My Retirement Account?
Saving towards retirement
Are you an employer looking for a way to provide a retirement plan for your employees but can’t afford the costs involved or a matching contribution? Are you an employee wishing your employer offered some type of retirement plan? In response to such questions, the U.S. Treasury has developed My Retirement Account (myRA) .
According to the U.S. Treasury there are millions of American workers who lack options to save for retirement or their employer doesn’t offer a retirement plan. In addition, it can be tough to meet the minimum for opening a retirement account (minimum opening amounts vary depending on where you open your IRA). According to the U.S. Treasury anyone eligible to contribute to a Roth IRA can use myRA to save for retirement but the program was specifically designed for individuals who don’t have access to an employer sponsored plan.
How can employers participate? By letting your employees know about myRA. Then if they want to participate you, the employer, set up payroll direct deposit. It is that simple. As the employer you don’t have to administer accounts, you don’t have to contribute to employee accounts, or match employee contributions. Just tell your employees about myRA and set up payroll direct deposit if they want to participate.
How can employees participate? First, if your employer is unaware of myRA share this information with them. Second, determine how much you can afford to contribute. Third, contribute to your plan automatically every payday. What amount? Whatever amount you are comfortable with $5, $10, etc. Is it affordable? There are no maintenance fees for the account and it costs nothing to open an account.
What else do you need to know? According to the myRA website your investment will be safe and will not go down in value. It is U.S. Treasury backed and your information is private and secure. The fund has a ten year annual average return of 3.19 percent. The maximum balance of your myRA cannot exceed $15,000 or a lower balance for up to 30 years. You can withdraw money from their myRA account without penalty, tax-free at any time and five years after the first contribution, interest earned can be withdrawn without tax or penalty. If you have more than one job you can contribute to your myRA account through multiple employers. If you quit or leave a job your myRA account goes with you.
What are you waiting for? Visit the website today for more info and tell your employer about it. Your retirement is up to you.
Michigan State University Extension has HUD/MSHDA certified housing counselors on staff to assist with the difficult process of foreclosure. To find a counselor near you visit the MI Money Health website or call your county extension office. Michigan State University Extension has released a new toolkit for homeowners who are experiencing or have previously experienced foreclosure. This toolkit will equip these individuals and families with tools to help them recover their financial stability, in the case that a recovery of their home is not possible. The toolkit is available to download free on the website.
Michigan State University Extension offers financial management and home ownership education classes. For more information of classes in your area, go to either MSU Extension events or the MI Money Health webpage.
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