In his State of the Union address in January, President Obama announced his intention to make a new type of Individual Retirement Account (IRA), called a “myRA,” available to certain taxpayers.What does this mean to you in working with planned gift prospects and their advisors?
MyRAs would have of the following basic characteristics:
- MyRAs would be created by the Treasury Department, pursuant to a presidential memorandum dated the day of the address but not actually signed until two days later, whereas existing IRAs are established under the Internal Revenue Code.
- At least initially, myRAs would be available only to those who work for entities that agree to offer the accounts to their employees. Employers will have some incentive to do this because they would not have to make myRA contributions,