I just recently looked into investing (as a 26 year old, I know I'm slightly late to the game). But the myRA option looked appealing. However, I couldn't find an abundance of information on it, as I can usually with other investment vehicles.

Are there any good sources for easy-to-understand readings of how myRA works, and how to take advantage of it? Specifically, I'd like to know the following:

  1. Where do I sign up? (i.e. Vanguard offers Roth IRA; who would offer a myRA)?
  2. If I've maxed out my 401k and Roth IRA already, can I still max out a myRA?
  3. I remember reading that the max limit in that account is $15k. However, if my money in that account increases, how do I transfer the gains to a Roth IRA if I have already maxed out my Roth IRA? Am I forced to pay taxes?
  4. Is this better than putting money into a low cost index fund with Vanguard?

Any help is appreciated. Thanks!

  • I heard on the radio that this was becoming a reality in the 2015 Tax Year. Does that mean this question/answer need to be updated? Or would it be better to open a new question.
    – Dacio
    Jan 19, 2015 at 19:17
  • @Dacio feel free to update
    – Dzt
    Jan 21, 2015 at 0:40
  • The MyRA has been officially cancelled. I am locking this question. Feb 4, 2018 at 1:00

1 Answer 1


"myRA" is a name for a proposal Obama made to make IRA more accessible to people who are employed but don't have access to the traditional employer-sponsored retirement plans. However, other than making IRA more accessible - there's nothing in that plan that doesn't exist already. You can open IRA yourself and deposit money there yourself. The only thing "myRA" proposal adds is an ability to deduct money automatically from your paycheck and deposit it into your IRA without you doing it manually.

Bottom line - it is just a proposal, not an existing program, that makes things you're already doing easier for people who are not doing it yet.

  • 1
    From what I've heard, myRA funds can only be invested in Treasuries, so it sounds like a particularly bad deal. It's too bad they aren't given access to Thrift Savings Plan funds.
    – Craig W
    Oct 26, 2014 at 12:44
  • it looked slightly appealing cus of the no-tax withdrawals, making it effective another place to dump money into for long term since i've already maxed out both 401k and roth ira already.
    – Dzt
    Oct 26, 2014 at 17:48
  • 2
    @Dzt I'm guessing the $5500 limit will be for both myRA and IRA (Traditional or Roth) combined. Your money is much better off in an IRA where you have more fund choices, particularly stock funds at your age. myRA is designed for lower-income folks who are currently saving very little or nothing.
    – Craig W
    Oct 26, 2014 at 19:49
  • 1
    @Dzt myRA is not an additional place to dump money, it is another way to deposit to IRA - which you already do.
    – littleadv
    Oct 26, 2014 at 21:01
  • got it. yeah, definitely not worth it if you are already maxing out Roth IRA. this plan seems convenient for millennials in low-income brackets
    – Dzt
    Oct 26, 2014 at 21:07

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .