myra.com
I had a question from a client to see if he would qualify for making a contribution to a MyRA account in addition to maxing out his 401(k). In reading the information about MyRA it doesn’t seem to say you cannot do both.
I had a question from a client to see if he would qualify for making a contribution to a MyRA account in addition to maxing out his 401(k). In reading the information about MyRA it doesn’t seem to say you cannot do both.
Permalink Submitted by Alan - IRA critic on Mon, 2015-11-16 19:56
He probably could, but MyRA is mainly for people with no other saving option and/or using payroll deduction with participating employers. If his employer offers a 401k, they would not likely be offering payroll deduction contributions to the MyRA. So if he wants to contribute more than the 401k max, if eligible would just contribute to a regular Roth IRA and avoid the MyRA.
Permalink Submitted by William Tuttle on Tue, 2015-11-17 05:48
The Treasury Department annoounced on Nov 4th, 2015 that MyRA has gone live. With that announcement there are now three funding mechanisms. Payroll deduction, single or recurring automatic contributions from checking/savings accounts, and/or from your tax return. The eligibility to contribute to the MyRa is the same as any other Roth IRA. Your income must be below the phaseout contribution limits. It was designed with the goals in mind that Alan mentioned. However, the investment is in the same securities as the TSP G fund. This is a bond fund with no interest rate risk. This can be a useful addition to even someone with other tax advantaged portfolio holdings. It could also provide a good location for emergency funds.