If your employees don’t have access to a retirement savings account, the Federal Government has made a new option available. It’s called myRA, and is available to anyone who has no access to another type of retirement savings, for example, a 401(k). Think of it as a starter retirement account. You know how important it is for all employees to save for retirement. Participants can fund their myRA accounts through:
- Payroll deduction. Participants can set up automatic direct deposit contributions to myRA through you, as the employer.
- Checking or savings account. Participants can have monies deducted from a checking or savings account regularly, for example, a set amount each pay period.
- Savers can also fund a myRA account directly by setting up one-time contributions from a checking or savings account.
- Federal tax refund. At tax time, you may direct all or a portion of a federal tax refund to your myRA account.
What else do you need to know?
As an employer, you don’t administer employee accounts, contribute to them, or match employee contributions. It only takes a few minutes for employees to sign up online. You simply allow a payroll deduction for myRA.
We know you care about your employees. myRA is a Roth IRA that is backed by the United States Treasury and carries no risk of losing money.
myRA is available at no cost to employers. It costs nothing to open an account and employees choose how much they want to save. Employees also choose how the savings happen.
Wherever your employees go, the account is available for them. If they change jobs, the account remains with them.
If you want more information so that you can offer this to your employees, visit http://www.myRA.gov