The IRS is winding down the myRA retirement plan that was initiated in 2014 to help low to moderate income families save for their retirement.
Providers can no longer sign up for a myRA, and if you have invested in a myRA, you can leave your money in it under further notice by the IRS.
The myRA was directed at people who weren’t currently covered by an employer-sponsored retirement plan. It could be set up for as little as $25 with no annual fees and it was guaranteed not to lose money. The myRA was a type of Roth IRA and followed the same eligibility rules as a Roth IRA.
Current investors in a myRA will be given instructions by the IRS on how to transfer your account to another Roth IRA investment. Providers may do that now without waiting for upcoming IRS instructions. There are no fees to transfer your account.
To get more information from the IRS, go here or call the IRS at 855-406-6972.
It’s a shame that this program has been discontinued. Apparently not enough people signed up for it and the cost to administer it was too high.
Too many family child care providers are not saving enough for their retirement, and the myRA was a good way to get started for those you had yet to set up an IRA.
Whatever IRA you choose, you should look to invest your money through index funds.
See my article, “Where Should I Invest My Money for Retirement?”
Tom Copeland – www.tomcopelandblog.com
For more information, see my book Family Child Care Money Management & Retirement Guide.