A couple years ago, President Obama directed the Treasury Department to establish a Roth IRA-type plan option, known as myRA, for employers of any size who do not currently offer a retirement plan. The myRA program allowed for employers to set up a payroll direct deposit process for employees to make contributions to their myRA accounts if they choose to participate. In addition, the Treasury Department established a dedicated website which included employer resources for employee communications and tools for setting up the program (see MyRA Program: Website Tools for Employers, Benefit Beat, 4/7/15).
According to a press release issued by the Treasury Department on July 28, 2017, the Department announced that it would begin to wind down the myRA program after finding that the program is not cost-effective, as well as lack of demand and interest of the program. Thus, no new enrollees will be accepted. Current participants have an option to move their existing account into another Roth IRA. The myRA website (www.myRA.gov) provides additional information for affected individuals.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.
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