IRA Review Roth IRA Fees, Traditional IRA, Rollover IRA, SEP IRA, 401K, SIMPLE IRA individual retirement accounts review, promotion offer, rating, fees and commissions. Is IRA good and safe way to invest? Description

MyRA is a free Roth IRA commissioned by the federal government and currently contracted through Comercia Bank. It is aimed towards lower and middle class Americans who do not receive retirement benefits from their jobs. Deposits are invested into a single treasury bond. The APR for 2020 is 1.750%. The average APR is 2.31%; the average APR for the 10 year period ending is 3.19%.

Interfaces IRA Review

The homepage is effective. There are several links full of great information about how the account works, how it is similar to other retirement accounts, how it is different from other retirement accounts, and how to open an account. Much can be learned by reading through the FAQs. Review

The overview page is plain and uncomplicated. It displays the account’s value. There are links to make contributions or withdraws on the left hand side as well as under a drop down menu on the upper right. Users should expect to go through a security verification process the first time that they log on or anytime that they attempt to log on from an unrecognized computer. The easiest way to verify one’s identity is to have code sent the mobile phone number on file.

This is the page to set up recurring contributions. Users have to option to continue contributions indefinitely, continue until a defined date, or continue until a number of contributions is met. ROTH IRA Review

The app, while simple, has little usability. Users can only view their account’s value; they cannot make contribute or withdraw funds from the iPhone app, a major disadvantage.

The Good

The major upside to a myRA account is that contributions and interest are guaranteed by the United States government. Contributions are invested in a single treasury bond, which are considered to be “risk free.” This is attractive to both older workers and those with a low risk tolerance.

Bonds traditionally pay a higher APR than standard savings accounts. Assuming that this is the case, investments in a myRA account will earn more than those in a savings account.

There are no cost to open an account; all that is required is an initial deposit. Additionally, there is no minimum investment and recurring deposits are not a requirement. However, account owners can elect to have their employers directly deposit portions of their paycheck, or they may set up automatic transfers from a bank account.

Investors can withdraw their contributions (not earnings, though) at any time with no penalties or taxes imposed, for any reason.

MyRA is a Roth IRA and therefore carries tax benefits with it. Many income earners are eligible for a saver’s tax credit through myRA. Contributions are calculated post-tax, so retirees will not owe taxes on distributions as long as they are qualified.

When an account is opened, the owner will designate a beneficiary. In the event of the account owner’s death, the account will be transferred to the beneficiary.

The Bad

Despite the advantages to the government’s myRA, investors should also consider the setbacks. Historically, stock indices earn more than treasury bonds. Workers hoping for higher APR earnings may not be satisfied with this accounts performance, a mere 3.19%.

MyRA accounts also have an expiration date: 30 years after the date of open or when the account’s value reaches $15,000. However, unlike milk at its expiration date, all is not lost. Accounts that meet the maximum time frame or dollar amount are rolled into a private sector IRA.

The biggest drawback of myRA is that unlike many other IRAs, where one may elect to invest in mutual funds, stocks, bonds, or ETFs, individuals have no choice in how their funds are invested. All contributions are invested in a treasury bond.

The Main Takeaway

This account is great for those with a low risk tolerance. Workers that benefit most from myRA include, but are not limited to:

- Low income individuals
- Those who are not particularly investment savvy
- People who lack the time or energy to manage a fluctuating investment account
- Workers who plan to retire within 10 to 20 years and will depend heavily on savings

Individuals who should steer clear of myRA are those who:

- Are high earners
- Enjoy selecting specific investments or invest in stocks, ETFs, mutual funds are better off with M1 Finance IRA or Ally IRA
- Know they will have livable income for the remainder of their lives
- Are offered 401(k) plans thorough their employer
- Already have significant savings and investments dedicated for retirement use

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MyRA Review Summary

MyRA is a magnificent program for some, but it is not for everyone. It all comes down to risk tolerance. Those with a higher risk tolerance, go another direction, take more risk, and reap more reward. Those with low risk tolerance or those who cannot afford to lose any of their investment can open an account at

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