Way back in Feb­ru­ary 2014, I penned a blog about a new option for work­ers whose employ­ers did not have a work­place sav­ings plan. It was dubbed the myRA and was designed as a starter sav­ings account. Pres­i­dent Oba­ma dis­cussed the new sav­ings option in his State of the Union Address last year and the U.S. Trea­sury launched a small pilot pro­gram for the free accounts last month. The pro­gram is now open to any­one who has direct deposit for their paycheck.

The U.S. Trea­sury has put togeth­er a com­pre­hen­sive web­site that dives into all the gory details of myRA, for both indi­vid­u­als and employ­ers. It can be found at: http://www.treasurydirect.gov/readysavegrow/readysavegrow.htm

Melanie Hick­en, a CNN Mon­ey con­trib­u­tor, has writ­ten a quick and easy to read sum­ma­ry of the new sav­ings plan.

The Bottom Line

I reit­er­ate what I post­ed back in ear­ly 2014 … Giv­en the numer­ous eco­nom­ic and social ben­e­fits of employ­er-spon­sored retire­ment plans, the myRA meets the needs of those who are not cur­rent­ly cov­ered by an employ­er. The myRA is exact­ly what it bills itself out to be; a sim­ple, cost effec­tive way for an employed per­son to save for retire­ment. While the invest­ment options are lim­it­ed to a sin­gle asset class, a U.S. Gov­ern­ment bond fund, the account is guar­an­teed to nev­er go down and, once cer­tain thresh­olds have been met, the investor can roll the bal­ance of the account into a pri­vate sec­tor Roth IRA. All in all, any­thing that allows a per­son to get save for retire­ment is a good idea.