Site Logo Retirement Dictionary Financial Advice Retirement Advice

Save time with our cheat sheets, fact sheets, checklists & books!

Get the cheatsheets!

March 12, 2016

MyRA

Learn More

Print

Definition

A my retirement account (myRA), is a type of Roth IRA.

With a few exceptions, the myRA bears features that are identical to a Roth IRA .

Features of a myRA

Features of a myRA include the following:

  • Contributions are limited to the lesser of 100% of eligible compensation, or the IRA contribution limit that is in effect for the year.
  • Qualified distributions myRAs are tax-free and penalty free.
  • Nonqualified distributions are subject to the ordering rule. This ordering rule determines if and how much of a distribution is subject to income tax and or the 10% early distribution penalty.

Source :https://myra.gov


Additional features include the following:

  • There are no fees for opening or maintaining a myRA
  • ·There is no minimum on contribution amounts
  • ·There is no minimum balance to maintain
  • ·Investments are back by the U.S. Treasury
More

Keep Learning

Applicable RMD Age

Applicable RMD Age The first year for which an IRA owner or plan participant must begin to take RMDs from their tax-deferred retirement account. RMDs

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Required Minimum Distribution (RMD)

Definition The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year.  For retirement account

Required beginning date (RBD)

Definition The date by which a retirement account owner must begin distributing required minimum distribution (RMD) amounts from a Traditional,  SEP or SIMPLE IRA, a

Favicon for Retirement Dictionary Financial Advice

 The Retirement Dictionary was created to provide IRAs and employer retirement plan information in an easy-to-understand manner for individuals at all levels of expertise and to help educate everyone about how retirement plans work.

Get Started

About

Categories

Be among the first to know when

IRA Rules
Change