Small businesses now have a new way to help their employees save for retirement. The U.S. Department of the Treasury recently introduced myRA (my Retirement Account), a new retirement starter savings account that is simple, safe and affordable for both employers and their employees. It was created for employees who do not have access to a retirement savings plan through work including part-time, seasonal, temporary and contracted employees.
How Does This Help Your Employees?
Millions of people in America are not saving for retirement and find it difficult to start saving for their future. myRA was developed to provide access and remove common barriers that keep people from saving.
- No cost or fees to open and maintain an account
- myRA carries no risk of losing money
- Employees choose how much to contribute to their myRA each payday*
- The investment is backed by the U.S. Treasury
- If an employee changes jobs, the account stays with them
- Employees can withdraw the money they put in without tax and penalty**
Employer Participation is Easy – And There’s No Cost
Helping your employees start saving with myRA is easy. There is no cost to employers. You simply set up an automatic payroll deduction from your employee’s paycheck to the designated myRA account in the amount the employee chooses.
The U.S. Treasury has created free materials you can use to tell your employees about myRA and help them open accounts. These resources include an employee meeting toolkit that gives you everything you need to set up a meeting with your employees about myRA. Other resources available include a poster, brochure, and more that can be easily downloaded and shared.
Start Helping Your Employees Today
Visit myRA.treasury.gov today to learn how you can help your employees save for retirement with myRA. If you have questions, please contact the myRA Outreach and Employer Support Office at (844) 874-7590 or via email at myRA@treasury.gov.
* Annual and lifetime contribution limits and annual earned income limits apply, as do conditions for tax-free withdrawal of interest. To learn about key features of a Roth IRA and for other requirements and details, see myRA.treasury.gov/roth-ira.
**Withdraw interest earned without tax and penalty five years after your first contribution if you are over age 59 1/2 or meet certain other conditions, such as using the funds for the purchase of your first home.