MyRA gives growers new retirement account option

The U.S. Department of the Treasury recently launched a new tool known as myRA for anyone interested in a different method to start saving for retirement.

It costs nothing to open an account, there are no fees, and contributions are invested in a U.S. Treasury security that safely earns interest, according to USDA. You can contribute as little as a few dollars each month, or even create automatic contributions from your bank account or paycheck, up to $5,500 per year. When ready, these savings can be rolled over into a private sector Roth IRA at any time to continue growing savings.

The myRA is not intended to replace existing employer-sponsored retirement plans, such as a 401(k) plan, because those accounts may offer special incentives like an employer matching payment. But if you don’t have access to a retirement savings plan, or excessive fees and complicated investment options are daunting, or perhaps you would like the younger members of your family to have better retirement awareness, then the U.S. Treasury’s myRA savings account might be an option for you.

Even if your future goal is to receive on-farm income, inheritance, or varying degrees of off-farm income such as social security, rental income, or veterans benefits, a myRA account still may be a helpful addition to your portfolio. Plus it is never too early to start saving: if you are 18 or older, not a full time student, and not a dependent, you are eligible.

To learn more about the program and its beneficial tax attributes, visit myRA.gov.

— Todd Atkinson, Farm Service Agency

Source: USDA Blog