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March 12, 2016

MyRA

Your Guide

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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

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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