THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
Friday, July 28, 2017
SAD TO SAY GOOD-BYE
in the infant myRA program, created under President Obama, just received the
myRA Program will be phased out and your account will be affected.
writing to inform you that the U.S. Department of the Treasury has decided to
phase out the myRA retirement savings program and the program is no longer accepting
new enrollments. Please read the important information below to learn what this
means for your account.
account remains open and you can continue to manage your account until further
notice. The funds in your account remain in an investment issued by the U.S.
Department of the Treasury. We'll be in touch over the coming weeks with next
steps and relevant deadlines regarding the transfer or closure of your account.
In the meantime, we want you to know that any myRA with a zero ($0) balance as
of September 15, 2017 or later, will be subject to possible automatic closure
beginning on September 18, 2017.
you should take now:
your contact information
recommend you log in to your account to make sure your contact information is
complete and up to date. You can also update your information by contacting
your myRA to another Roth IRA
myRA is a Roth IRA. You have the option to transfer your myRA into another Roth
IRA that you select. To do so, you will first want to identify or open an
account at the new Roth IRA provider where you will continue to save and
invest. Then, by working with a new Roth IRA provider you select, you can
transfer your myRA balance to your new Roth IRA. This will allow you to
continue saving without paying current income taxes on earnings, maintain the
preferential tax treatment of a Roth IRA, avoid tax withholding that may apply
to a distribution, and avoid penalties.
you choose not to transfer your balance to another Roth IRA, you can make a
withdrawal for the amount of your myRA balance by calling customer service. You
can also withdraw funds online by signing into your account. To maintain all of
the benefits of a Roth IRA, you must deposit funds paid to you (as well as any
tax withholding) into another Roth IRA within 60 days of the distribution.
Failure to do so may result in tax liability and penalties related to withdrawn
earnings that would have been avoided by working with your new Roth IRA provider
to transfer your account balance.
irs.gov/rollovers for more information regarding Roth IRA transfers or
rollovers, or visit myRA.gov to learn more about withdrawing funds from myRA.
transfer of your myRA balance to another Roth IRA or distribution to you of
your myRA balance, Comerica1 will no longer be custodian to your myRA.
more information about this announcement or if you have additional questions,
is sad that this program is being killed.At this point I do not know if it is because of lack of sufficient participation
or idiot Donald T Rump’s continual policy of undoing any good done by his
predecessor out of spite.
will report on future developments with this issue here as they arise.