MyRA

MyRA is a new retirement savings vehicle geared to those who don’t currently have a retirement plan offered through their employer. Accounts follow the same rules as a Roth IRA: There’s no initial tax deduction, but all growth is tax-free. To fund a myRA, you have to meet the same income thresholds as a Roth IRA.

Accounts are opened online. Subsequent investments are made in any amount, either through payroll deduction or by electronic transfer from a bank account. The account is invested in a single investment whose earnings are driven by government bond yields. An account’s balance is capped at $15,000, at which point it stops earning interest.

The hope is that a myRA account will allow workers to get started with modest regular contributions—something that’s difficult to do at most financial firms, which often insist on steep minimum initial investments. Once the account has grown to a decent size, investors might roll over the account to a Roth IRA at, say, a mutual fund firm and then continue their regular savings program at the fund company. You can learn more about myRA at myRA.Treasury.gov.

Next: Tax-Deferred Fixed Annuities

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