Employers won’t have to offer myRAs

The U.S. Department of the Treasury says employers will not be required to offer the new retirement savings account, myRA, to their workers.

However, it notes that the myRA program will fill a void for workers and employers alike, especially employees without an employer-sponsored plan and employees who don’t qualify for their employer’s existing retirement plans.

The Treasury Department says the program isn’t meant to replace employers’ DC plan; it’s intended for workers who don’t have access to an employer-sponsored retirement plan.

Initially, participating employers will offer myRA information to their employees. Once the accounts are available, employees will be able to enrol in the program with a minimum contribution of $25.

An employee can then elect to have a portion of each paycheque—as little as $5—directly deposited into myRA automatically. The account will be portable and not limited to one employer.

The account is expected to be rolled out at the end of the year.

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