Tags: Retirement | obama myRA | differences | roth IRA

5 Differences Between Roth IRA and Obama's myRA

By    |   Tuesday, 05 May 2015 03:06 PM

President Obama started the myRA retirement savings program through the United States Department of Treasury to help people get ready for retirement. MyRA essentially allows workers to put their funds in a Roth IRA, which can be accessed tax-free at retirement.

However, there are some key differences between a Roth IRA and the myRA accounts, here a five of them:

Free Retirement Calculator: When Can You Retire? — Click Here to Find Out

1. The myRA is cheap to start: A myRA can be started with as little as $25.

2. Limits on total investment:
The myRA is developed with the person in mind who has very little — or nothing invested for retirement. The total amount allowed in a myRA is $15,000, at which point the account must be rolled into a regular Roth IRA

3. The money is completely secure: Unlike a Roth IRA, which could lose money depending on which way the stock market fluctuates, the myRA is backed by U.S. Treasury security.

How Soon Can You Retire? Free Test Shows You When — Click Here

4. The returns are probably not going to be as good as a regular Roth IRA:
The United States Treasury security is based on a guaranteed interest rate which has averaged about 3.19% over the last 10 years. That is significantly less than many mutual funds that could be used for a regular Roth IRA.

5. You have to use direct deposit: While a Roth IRA can be opened by anyone independently of an employer, contributions to a myRA must be made through direct deposit from your pay check. The employer does not own the account, but must help facilitate the deposits.

An Extremely Simple Way To Determine If You're Ready To Retire — Find Out Now

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
FastFeatures
President Obama started the myRA retirement savings program through the United States Department of Treasury to help people get ready for retirement. MyRA essentially allows workers to put their funds in a Roth IRA, which can be accessed tax-free at retirement.
obama myRA, differences, roth IRA
292
2015-06-05
Tuesday, 05 May 2015 03:06 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved