Treasury Works with Tax Software Providers to Encourage Filers to Save with myRA
WASHINGTON, D.C. – As part of a collaborative effort to encourage retirement savings, the U.S. Department of the Treasury today announced that tax preparation software providers TaxAct, TaxSlayer, and TurboTax will encourage tax filers to start saving for retirement with myRA® (my Retirement Account). Tax filers may see messages about saving with myRA as they complete their tax filing with these tax preparation services in the upcoming tax filing season. myRA is a simple, safe, and affordable retirement savings account designed especially for people who haven’t begun saving or who don’t have access to retirement plans at work.
The collaboration with the tax preparation industry underscores the value of tax-time savings as a key moment in time for individuals and families.
According to the IRS, more than 70 percent of tax filers will receive federal refunds this year, which presents an important opportunity for many people to contribute to long-term savings. This is an especially good opportunity to start to save for the millions of working Americans who report that they have no retirement savings or pension.
“We experienced strong interest in myRA during the 2016 tax filing season as filers recognized the value of beginning to save for retirement and learned about myRA,” said Richard Ludlow, Executive Director of the myRA program at the Treasury Department. “We’re excited to expand on this interest this year so that more people can take that first step toward long-term financial security.”
The participating tax software firms will help tax filers by linking them directly to www.myRA.gov, where consumers can learn more and open a myRA account. Taxpayers can choose to save by transferring funds from their bank account, their paycheck, or by direct depositing all or some of their tax refund into their myRA account during the filing process.
“For many hard-working Americans, the hardest part about saving is simply taking that first step,” said Rob Gettemy, chief operating officer at TaxAct. “With myRA, it’s easy and safe for people to get started. The tax refund is the biggest pay check of the year for many taxpayers. Helping them use that money for a better financial future, with no risk, is an incredible opportunity.”
“TaxSlayer is committed to the financial health of our customers,” said Daniel Eubanks, director of Regulatory Affairs and Compliance at TaxSlayer. “We are proud to partner with the Department of Treasury to expand the reach of myRA, and we look forward to educating our customers on the value that it provides.”
"Tax time is one of the most important moments in an individual's financial life. Encouraging savings at tax time, when most taxpayers receive a tax refund – which for many can be the biggest check of their year – can begin to make a real difference in a family's financial situation. Saving even a little at tax time can help people make better financial decisions for themselves and their families all year long,” said Bernie McKay, senior vice president of Corporate Affairs at Intuit. “We are pleased to once again work with Treasury to support myRA as part of our commitment to help millions of people achieve financial freedom.”
VITA Site Integration
Treasury also is working closely this tax season with Volunteer Income Tax Assistance (VITA) sites, Tax-Aide programs, and non-profits with similar missions across the country to share information about myRA with low- and moderate- income tax filers seeking free help with their taxes.
Cally Ingebritson, Financial Capability Manager at St. Paul, MN nonprofit Prepare + Prosper, is passionate about helping low-income tax filers understand how they can make their tax refunds work for them. Last year, Prepare + Prosper became one of the first VITA sites to help their tax filers take steps toward saving for retirement with myRA when they shared information about the program and how to directly save their refunds into myRA accounts – work that they hope to build on again this tax season.
“A lot of people are excited to find out about financial opportunities – like saving with myRA – at tax time,” said Ingebritson. “Many of the tax filers we serve are interested in saving, but have faced barriers in doing so. Discussing saving with our customers is a priority and we can now talk about retirement savings with myRA. It’s easy and non-intimidating because filers can put just a little bit away for long-term savings year-round.”
Many tax filers who save for retirement may also save on their taxes, due to the Saver’s Tax Credit. Eligible individuals who contribute to their myRA accounts may receive a tax credit depending on their income based on a percentage of up to $2,000 in contributions (up to $2,000 for each spouse if married filing jointly).
Additional details, fact sheets, and testimonials are available at myRA.gov. Tax professionals can also find information and materials that make it easy to share myRA with customers at myRA.gov/taxpro.
Date modified: 01/26/2017