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MyRA: How This New Retirement Account Could Help You

With most employers having moved away from pension plans, saving for retirement on your own is more important than ever. The federal government's new MyRA aims to boost retirement savings rates, but how does it really work?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the basics of the MyRA. He notes that the key to the plan is its ability to make small contributions of as little as $25 to start and $5 for future contributions. Once the total hits $15,000, savers must take the money and open a regular IRA account at a broker. Dan notes that the key benefit to MyRAs is the lack of fees. Even though Schwab (NYSE: SCHW  ) , E*Trade Financial (NASDAQ: ETFC  ) , TD Ameritrade (NYSE: AMTD  ) , Scottrade, and many other discount brokers offer low-fee alternatives to those able to make regular automatic monthly contributions, the MyRA is even more flexible in accepting smaller contributions to get invested in a bond-equivalent investment option.

Make the most of your other retirement money source
Saving for retirement is essential, but Social Security also plays a key role in your financial security. In our brand-new free report, "Make Social Security Work Harder for You," our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Read/Post Comments (7) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 01, 2014, at 4:20 PM, slanciano wrote:

    Give the Libs your liberties and they in turn offer you free Obozocare.

  • Report this Comment On February 01, 2014, at 4:39 PM, MaxxTheKatt wrote:

    We already have a national retirement program. It's called Social Security. While other retirement programs such at IRA's, 401K's and many pensions when belly up and a lot of people suffered big losses.......Social Security continues to pay out those monthly benefits. We don't need another retirement program. What is needed is for our elected representatives to pass legislation providing protection for the existing IRA's, 401K's, company pensions, etc.

  • Report this Comment On February 02, 2014, at 1:19 AM, GETRICHSLOW2 wrote:

    This is nothing more than a scam for the government to get it's hands on more of the peoples money.

    Those who do not have the discipline to save those small amounts until they get big enough to make a normal contribution will likely not have the discipline to leave the money in the account.

    Expect to see more of this type of trickery as the Federal Government becomes more desperate to steal your assets.

  • Report this Comment On February 02, 2014, at 6:28 AM, sj586 wrote:

    "Once the total hits $15,000, savers must take the money and open a regular IRA account at a broker." - If a Republican suggested this the Democrats would criticize him for trying to help the big bankers.

  • Report this Comment On February 02, 2014, at 7:55 AM, geybeard46 wrote:

    Too many questions still unanswered. For instance it is designed for small savers but could it be used to supplement those that wish to save more than the 401k yearly limit. Is it a potential to save more in a Roth circumventing the $5500 yearly limit. Having rolled the $15k to a Roth can another myRA account be generated to start another $15k; any limits on this rotation in time or $$ ?

  • Report this Comment On February 02, 2014, at 11:11 AM, portagus wrote:

    The government does not need to take on another project that they will not be able to run. As for the low income saver they will not use this benefit if you want to call it that.

  • Report this Comment On February 02, 2014, at 12:25 PM, sugarbritches wrote:

    I find your articles informative and so enjoy them. What is happening in the country now is really sad, but it is reality! So, this plan and other information for retirement are certainly of some value. The best armor to put on at this time is the armor of PREPARATION, for both ourselves and our children.

    Social Security was never designed to meet one's total needs during retirement. Also it appears that neither government nor corporate America is too eager about setting up plans that will take care of us until we die because we worked twenty or thirty years for them. So it is time to be reactive.

    Finally, it is time to focus beyond "Obama" and "the government" as people come and go and each new governmental staffs bring about change. As they say in sports: the best "defense" is a good "offense"

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Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

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