Article by Marilyn Geewax | Featured on NPR
Going from young and broke to retired and comfortable is a long, tough road.
So the Obama administration on Wednesday rolled out a simple, no-risk retirement account to help people start that journey. It’s called the myRA — or “my retirement account.”
President Obama first outlined this program in his State of the Union address last year.
Since then, his administration has been working with a few dozen employers to test what works.
Now, the myRA program is being rolled out nationwide. The accounts are designed to help people who lack access to a retirement savings plan at work, and can afford to set aside only small amounts of money.
The goal is “getting people into a cycle of saving,” Treasury Secretary Jacob Lew told reporters on a conference call.
“MyRA has no fees, no risk of losing money SB Game Hacker Download and no minimum balance or contribution requirements,” he said.
Traditionally, Americans could save without the help of their employers by using a tax-deferred individual retirement account, or IRA. But Lew said many workers are intimidated by IRAs, fearing such accounts would be too complicated or risky or loaded with fees.