WASHINGTON Jan 29 The Obama administration is
scheduled on Wednesday to launch a retirement savings vehicle
called "myRA," aimed at enrolling more Americans in a
government-backed investment option.
In details provided by the White House on Wednesday, the
retirement savings proposal would be similar to a Roth
Individual Retirement Account, but with holdings backed by the
U.S. government like savings bonds.
"MyRA guarantees a decent return with no risk of losing what
you put in," President Barack Obama said in introducing the
program on Tuesday night in his State of the Union Speech.
Those accounts would be available to households earning no
more than $191,000 a year. Businesses will need to register in
the pilot program by the end of the year for their employees to
Investors would earn a variable interest rate equal to the
Thrift Savings Plan, or TSP, which is available to federal
employees. Contributions could be withdrawn tax-free at any
Initial investments could be as low as $25, and
contributions as small as $5 could be made through payroll
Participants could save up to $15,000, for a maximum of 30
years, in their accounts before transferring their balances to a
private-sector Roth IRA.
About half of all workers and 75 percent of part-time
workers lack access to employer-sponsored retirement plans, the
White House said.