The U.S. Department of the Treasury recently launched a new tool, known as myRA, for anyone interested in a simple, safe, understandable, and affordable method to start saving for retirement.

It costs nothing to open an account, there are no fees, and contributions are invested in a U.S. Treasury security that safely earns interest. Contribute as little as a few dollars each month, or even create automatic contributions from a bank account or paycheck, up to $5,500 per year. These savings can be rolled over into a private sector Roth IRA at any time.

The myRA is not intended to replace existing employer-sponsored retirement plans, such as a 401(k) plan, because those accounts may offer special incentives like an employer matching payment. However, for those who don’t have access to a retirement savings plan, or excessive fees and complicated investment options are daunting, then the U.S. Treasury’s myRA savings account might be an option. Anyone who is 18 or older, not a full time student, and not a dependent, is eligible.

To learn more about the program and its beneficial tax attributes, visit myRA.gov.

Source: USDA