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myRA, What Is It And Can It Work?

I’d be lying if I said I actually watched or paid much attention to the State of the Union address last week. However, one point of President Obama’s speech did spark some interest as I was looking at the highlights online. The President is putting a new retirement savings plan into place called myRA. It is supposed to be a take on I-R-A and is pronounced with three syllables, my-R-A, although I can see it being called Myra, like the name. I’m not sure which clever political mind came up with that title, but anyway, is myRA a good plan for retirement? Well, just like most government policies, it depends. You can get a good breakdown of the preliminary rules of myRA from CNN Money, but here are the highlights. -Available for employees making less than $191,000 whose employers agree to participate and offer direct payroll deposit. -Works like a Roth IRA, where contributions are not pre-tax or tax deductible, however, withdrawals of contributions and interest are tax free after age 59.5. -There are no fees. -Money is invested in government backed bonds similar to the Thrift Savings Plan G fund. Principal is guaranteed, meaning you might not earn much ...

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