Treasury announces the wind down of the myRA program

Treasury announces the wind down of the myRA programThe Treasury Department recently announced that it will begin to wind down the myRA program after a review by the government found it not to be cost-effective.

MyRAs were launched in 2014 as a savings plan offered by Treasury intended to encourage retirement savings among low-income individuals lacking employer-sponsored retirement plans. MyRAs operated essentially the same as Roth IRAs, allowing after-tax contributions to the account. However, the sole investment option was a Treasury security that earned the same interest rate as the government bond fund available to federal employees. Also, participants paid no start-up fees or account maintenance fees.

According to Treasury, demand for and investment in the myRA program has been low, while the cost to the federal government to manage the program since 2014 was high. Treasury announced that it will phase out the myRA program over the coming months, and it will communicate frequently with participants to help facilitate a smooth transition to other investment opportunities. Participants in the myRA program are being notified of the upcoming changes, including information on moving their myRA savings to another Roth IRA. Treasury encourages myRA participants to visit for additional information or to call myRA customer support with any questions.

Contact Eddie Adkins
Partner, Washington National Tax Office
T +1 202 521 1565

Jeffrey Martin
Partner, Washington National Tax Office
T +1 202 521 1526

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.