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Open Enrollment Toolkit | Newsletter Article / Blog Post
All your employees can start saving during Open Enrollment Season with myRA It's Open Enrollment Season, the time of year when your employees sign up for, or make changes to their benefits, such as healthcare, life insurance, and retirement savings. It's a great time for employers, especially those with employees without access to retirement plans, to introduce those employees to myRA®. If you don't yet offer a workplace retirement savings plan or have employees who aren't eligible for your plan, you're not alone. In fact, one out of every three private industry workers lacks access to retirement benefits at work. Certain workers have even lower access rates – 59 percent of service workers and 63 percent of part-time workers don't have access to employer-sponsored retirement benefits. Now, there's a retirement savings option that could be a good fit for both your business and your employees. Launched by the U.S. Department of the Treasury, myRA is a starter retirement savings account that makes saving simple, safe, and affordable. There's no cost to individuals or their employers, and it can help fill the gap for employees who want to start saving, but need an easy way to get started. Visit our News & Media Page to see testimonials from businesses whose employees have started saving with myRA. Good for your employees myRA can help your employees take the first step toward a more secure retirement and get in the habit of saving. Features include: • myRA costs nothing to open and there are no fees • Employees choose how much they want to save1 • Accounts safely earn interest2 • It's mobile – if an employee changes jobs, the account stays with them • Savers can withdraw the money they put in without tax and penalty3 Easy for employers With myRA, you don't administer employee savings accounts, contribute to them, or match employee contributions. You simply tell your employees about myRA. When they open accounts, employees will choose how to make contributions (transfers from their checking or savings accounts, direct deposit from each paycheck, or even from their federal tax refunds). If your organization offers direct deposit and a saver chooses that option to fund their myRA account, you'll set it up just as you would any other payroll deduction. Signing up is easy Your employees can open myRA accounts in a matter of minutes at myRA.gov. Here's what they'll need to have on hand: • Social Security number • Driver's license, state ID, U.S. passport, or military ID3 • Name and birthdate of at least one beneficiary (the person you choose to inherit your account) All workers can take advantage of this Open Enrollment Season to start saving for their futures. Help them take the first step today at myRA.gov.1Annual and lifetime contribution limits and annual earned income limits apply, as do conditions for tax-free withdrawal of earnings. Limits may be adjusted annually for cost-of-living increases. To learn about key features of a Roth IRA and for other requirements and details, go to myRA.gov/roth-ira. 2Withdraw interest earned without tax and penalty five years after your first contribution if you are over age 59 1/2 or meet certain other conditions, such as using the funds for the purchase of your first home. Accounts earn interest at the same rate as investments in the Government Securities Fund, which earned 2.04 percent in 2015 and had an average annual return of 2.94 percent over the ten-year period ending December 2015. 3You can also open an account using an ITIN (Individual Tax Identification Number), but only by contacting myRA customer support at 855-406-6972 or TTY/TDD 855-408-6972 or International 1-414-365-9616.
Last updated 09/06/2016