Skip to comments.Prepare For When The New MyRA Becomes "TheirRA"
Posted on 02/10/2014 11:11:19 AM PST by blam
Prepare For When The New MyRA Becomes "TheirRA"
Personal_Finance / Pensions & Retirement
Feb 10, 2014 - 06:47 PM GMT
Peter Krauth writes: In his recent State of the Union Address, President Obama unveiled something new: a retirement savings account to "help" Americans build a nest egg, coining it the "MyRA."
Something immediately felt wrong about the proposal... but I couldn't put my finger on it.
So I researched the new MyRA and found details to help you understand just how it works.
But I also saw some potential dangers there that you need to prepare for now...
What MyRA Really Means
Like most government programs, getting to their essence can take some sifting. So I've distilled here what I think are the principal components of MyRA. Individuals earning up to $129,000 and couples earning up to $191,000 are eligible if their employers offer the account; The minimum initial contribution is $25, then at least $5 through payroll deductions; The maximum contribution is $5,500 per year ($6,500 if over 50 years of age); Once the balance reaches $15,000 or has existed 30 years, it must be rolled into a Roth IRA; Total contributions to a person's IRAs cannot exceed $5,500 annually; Like a Roth IRA, withdrawals will grow and be redeemable tax-free; Principal can be redeemed any time, but earnings withdrawn before age 59 ½ are taxable and subject to 10% penalty; and Only one investment available: Treasury bonds paying variable interest-rate return
MyRA Is Set to Lose the Inflation Battle
Essentially, the MyRA is like a Roth IRA that your employer opens for you, allowing for low individual contribution requirements.
(Excerpt) Read more at marketoracle.co.uk ...
You can guarantee that the government WILL NOT invest the money in any meaningful way. Instead they will do the same as they did with SS; spend it all and replace them with worthless IOUs that you and I have to pay back.
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I said during the SOTU that this plan is laying the groundwork to nationalize your IRA’s and 401K’s. That’s already on the table in Congress.
This guy doesn’t go that far but this is the first thing I’ve seen that even looks at this new government run Ponzi scheme.
Thanks for posting it.
Once your money is “saved for you” in treasury securities you have no money.
You have a promise - sort of - from the Federal Government.
Sort of like putting money in the Social Security Lockbox.
Two words - John Corzine.
“New and improved lockbox-with ‘titanium’ locks. enrcypted with Target grade protection”.
Now we can opt out, right?
It’s getting scary.
For now you can. Later....probably not so much.