So, how is this any different than money paid into SS that gets spent by the gov't and replaced with future contributions?
I still think the solution to a gov't money shortage is to let those that think we should pay more taxes...... ante up and pay them. Or not. They are free to do that now. :roll:
Prepare Now for When the New MyRA Becomes "TheirRA"
Money Morning ^ | 10 February 2014 | Peter Krauth
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.
1. Individuals earning up to $129,000 and couples earning up to $191,000 are eligible if their employers offer the account;
2. The minimum initial contribution is $25, then at least $5 through payroll deductions;
3. The maximum contribution is $5,500 per year ($6,500 if over 50 years of age);
4. Once the balance reaches $15,000 or has existed 30 years, it must be rolled into a Roth IRA;
5. Total contributions to a person's IRAs cannot exceed $5,500 annually;
6. Like a Roth IRA, withdrawals will grow and be redeemable tax-free;
7. Principal can be redeemed any time, but earnings withdrawn before age 59 ½ are taxable and subject to 10% penalty; and
8. Only one investment available: Treasury bonds paying variable interest-rate return . . .
I still think the solution to a gov't money shortage is to let those that think we should pay more taxes...... ante up and pay them. Or not. They are free to do that now. :roll: