What is a Roth IRA?
A Roth IRA is a special type of individual retirement arrangement that has unique tax benefits
different from those associated with “Traditional” IRAs.
How do Roth IRAs differ from Traditional IRAs?
Unlike Traditional IRAs, contributions to Roth IRAs are not tax deductible. But, if the
requirements are satisfied, Roth IRA distributions are tax free. Also, you can make Roth IRA
contributions even after you reach age 70½ as long as you have earned income (or file a joint
federal income tax return and your spouse has earned income). Roth IRA contributions may,
however, only be made if your modified adjusted gross income (MAGI) is within the allowable
limits. As a Roth IRA owner, you are never required to take distributions while you are alive.
How long have Roth IRAs been available?
Roth IRAs were created as part of the Taxpayer Relief Act of 1997, and became effective January 1, 1998.
What is a myRA?
myRAs are Roth IRAs offered by the United States Treasury. myRAs are established with the Treasury's designated custodian, and are subject to all of the Roth IRA rules and regulations. myRAs are invested in a Government Securities Investment Fund (G Fund), previously available only to federal employees through participation in the federal Thrift Savings Plan. A myRA may be held by the Treasury's designated custodian for 30 years, or until the balance of the myRA reaches $15,000 whichever comes first. At the time a myRA can no longer be held by the Treasury's designated custodian, it will be transferred to a private-sector Roth IRA.
The myRA program is currently restricted to only individuals who contribute through direct payroll deposit with the individual's employer.