October 8 – What is myRA?
Question: I’m working with a Social Security Disability Insurance (SSDI) beneficiary who would like to begin saving for retirement. This person has been doing some research and mentioned a new retirement savings option called myRA. What is that?
Answer: The United States Department of Treasury developed myRA to remove common barriers to savings and help people take the first step toward a more secure retirement. myRA is a retirement savings option for worker who don’t have access to a retirement savings plan at their job or lack other options for saving. If a person already has access to a retirement savings plan, such as a 401(k), he or she should learn more about that plan because it might offer matching contributions and other benefits.
myRA has no start-up cost, no fees, and no minimum contribution requirement, so a person can contribute the amount that best fits their budget. This account falls under the category of a Roth Individual Retirement Account (IRA). A person can contribute to their myRA account with as little as a few dollars a month, generally up to $5,500 per year (or $6,500 per year for those age 50 and over).
It’s important to note that this type of retirement account is a countable resource for most financial need-based programs, such as Supplemental Security Income (SSI).
References:
United States Department of Treasury myRA website: https://myra.gov
Would you like to find out more about WIPA and your benefits? Contact your statewide WIPA Program-Project 20/20 if you have questions like our Daily Tips or want to learn more about working while receiving social security disability benefits. Call our North Augusta office at 803-279-9611 or the Ticket to Work Helpline at 1-866-968-7842. You can also complete a Contact Us or Self-referral Form.