Catherwood LibraryILR School

In the State of the Union Address on Tuesday, President Obama announced a new vehicle for Americans trying to save for retirement, ?MyRA?. The accounts would function much as a Roth IRA with regard to tax-law and is meant to provide an alternative to 401(k) for workers whose employers who don?t offer other retirement programs. The ?MyRA? account would be funded directly from an employee?s paycheck with as little as $25 per month and holds up to a maximum balance of $15,000 before being deposited into a Roth IRA. Participation in the plan will be entirely voluntary, and the principle deposits made by the employees would be guaranteed, regardless of market or interest fluctuations. The accounts will be life-changing for the 38% of U.S. workers who do not have access to retirement benefits.