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.
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