On July 28, 2017, the U.S. Treasury announced its
decision to terminate its sponsorship of the myRA program.
In January of 2014, President Obama issued a presidential
memorandum directing the Treasury to establish
The U.S. Treasury did not want to call the new investment
account a Roth IRA so it was called a myRA.
There are probably many reasons this special program
is being terminated.
One of them is - the program was expensive as the
U.S. government has spent $70 million to manage the
program since 2014. Even so, public participation was
small. The myRA program initially was to be a payroll
deduction IRA program. Participation was so low the
program was changed to allow individuals to contribute
directly into myRA accounts.
New enrollments to the myRA program are no longer
permitted. Although no formal deadline has been established,
myRA account holders are being encourage to
transfer or rollover their myRA balance to another Roth
IRA as soon as possible.
It may be you will have clients interested in establishing
a Roth IRA with you and then their Roth IRA funds
may be transferred.
As with many subjects, the government likes to issue
FAQs as a way to communicate with the public. The
FAQs are set forth.
A second unstated reason for ending the myRA program
is that the Trump administration wanted to discontinue
the Obama administration's expansion of the federal
government's role in the pension and IRA industry.
Although the single payer system is normally thought of
as a medical health insurance issue, some “progressives”
would like to see if a single system for IRA and
pension fund administration would also work.
Individuals with myRA accounts should be working to
move their funds to another Roth IRA as soon as possible.
Obviously, transferring the funds would be best. The
IRS has given no indication that the once per 365 day
rollover rule does not apply to this government created