The Department of the Treasury is offering myRA in response to a presidential directive to develop a retirement savings security targeted to lower and medium income individuals who are not currently saving and are not eligible to participate in an employer-sponsored retirement plan. myRA is not subject to the reporting, disclosure and fiduciary requirements of ERISA, as an employer would not be establishing or maintaining an employee pension benefit plan, as described within Section 3(2) of ERISA, as the program is voluntary in nature, and is essentially established, sponsored and administered by the federal government in the absence of any employer funding or role in design or administration.
Establishment of the myRA program is subject to the following conditions:
- A myRA account will invest only in a new Treasury retirement savings bond, only available to myRAs.
- The account will be a Roth IRA, and therefore subject to the rules applying to Roth IRAs, such as contribution limits, income limits, and taxability rules. However, an employer making myRAs available via payroll deduction is not responsible for complying with any of those rules or limits.
- There will be no fees to open and maintain a myRA.
- Assets can be rolled over at any time to a private-sector Roth IRA, after the retirement savings bond matures (after 30 years) or once its total value reaches $15,000.
- Contributions are only made through payroll deduction (which may be expanded to include other contribution methods in the future).
planadviser.com; January 2, 2015.