POTUS had a lot to say in his State of the Union address, but we thought it timely to break down the details about the all-too-confusing MyRA program into a few simple points. 

Let’s connect on Twitter @SINevents

The program is essentially putting together starter retirement accounts aimed at people who don’t have a lot of savings.

MyRA would be a program of small Roth IRA’s with access to a special, safe investment that pays slightly better than Treasury bills. With a Roth IRA, account holders may withdraw money in retirement without ever paying taxes on investment returns.

Employers would not fund the accounts; however employees would be able to fund them through payroll deductions in increments as low as $5 per pay period.

Anyone making less than $191,000 / year qualifies.

Balances can get as high as $15,000 before being forced to roll over into a private Roth IRA, and it seems as if normal Roth IRA withdrawal penalties would apply.

Interested in staying tuned in with all of the financial news relevant to students, interns, and recent grads? Check out our friends at Generation FKD!