But any workers may invest in the accounts, including those who would like to supplement an existing 401(k) plan, as long as their household income falls below $191,000 a year for a married couple or $129,000 for an individual.
Here’s how it works: the accounts are basically a new kind of Roth Individual Retirement Account, which means that you can invest after-tax dollars and withdraw the earnings tax-free in retirement. Plus, you can withdraw the funds you put into the account without penalty at any time.
But unlike private Roth IRAs, myRAs will be invested solely in government bonds and will be backed by the U.S. government — meaning you can never lose your original investment. Plus, there will be no fees to eat into your annual returns.
–
Factset: FactSet Research Systems Inc. 2015. All rights reserved.
Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.