Obama Announces Plan for New “MyRA” Retirement Account

President Barack Obama on Tuesday proposed a new method for saving for retirement during his 2014 State of the Union address.

“Let’s do more to help Americans save for retirement,” the president said during his speech, going on to note that most workers don’t have a pension, and that Social Security checks alone often aren’t enough to cover retirees’ cost of living.

And while the stock market has doubled in the last five years, he continued, its performance has no benefit for people without 401(k)s.

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“That’s why, [Wednesday], I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA,” he said. “It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in.”

The president also urged Congress to work with him to fix an “upside-down tax code” he says gives big tax breaks to help the wealthy save, but doesn’t do much for middle-class Americans.

“Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can,” Obama said to an audience that included five Supreme Court justices, First Lady Michelle Obama, Vice President Joe Biden, and members of the U.S. House of Representatives and Senate.

The MyRA would be offered through a Roth IRA account and would be backed by the U.S. government, similar to savings bonds. Earnings from investments made with Roth IRA contributions can be withdrawn tax- and penalty-free.

View the transcript of the president’s Jan. 28 State of the Union address.

Written by Alyssa Gerace

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  • Sounds great but will it work and will he ever be able to implement the plan?? Also, who will administer all that our President proposes to do for those trying to figure out what and how they will manage to retire??? Question after question I say!

    John A. Smaldone

    • John,

      We have heard several critics of the HECM program telling us that going from Standards and Savers to the present choices is so much better because of less confusion over choice. Can’t the opposite be said for adding yet another rather meaningless retirement account when regular and Roth IRAs would work just as well when invested in US debt securities (Treasury bills, Treasury bonds, etc.) for the vast majority of those who are not the income mass affluent and do not have employer provided retirement plans?

      It would almost be better if working stiffs like most of us were given a tax credit so that we could work on a retirement plan with a competent retirement planner.

      This idea is more of the same not so great ideas that increase the size of government and not much else.

  • What a joke, MyRA won’t make a difference, what a waste of resources. People can already open an IRA. Typical Obama – all show and no go, he has no clue how to run the country.

  • Haha, thanks a lot. Frankly, I don’t recall commenting on this or a similar topic in the past and I doubt I ever did, and I’ve never been an Obama supporter. You must have me confused with someone else. However, that being said, I may just do that!! You’ll miss me.

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