A bill introduced in the U.S. Senate last week aims to restore myRA, a retirement savings program that was eliminated by the Trump Administration.
The myRA program was established in 2014 to create starter retirement savings accounts for people without access to a 401(k) at work. The Administration eliminated the myRA program in July 2018.
The Encouraging Americans to Save Act, sponsored by Sen. Ron Wyden (D-OR), restructures the existing saver’s credit into a refundable, government matching contribution of up to $500 a year for middle-class workers who save through 401(k) type plans or IRAs. It would also enhance the saver’s credit by making the full 50 percent credit rate available to taxpayers making up to $32,500 a year and require that credit is directly contributed into the saver’s retirement plan or IRA.
“Instead of supporting retirement programs and incentives to lift up workers, Republicans in Congress and the Trump administration continue to use the tax code as a way to benefit those who need it least,” Wyden, Senate Finance Committee Ranking Member, said. “It’s a double whammy that’s fueling the country’s retirement crisis. My legislation aims to level the playing field and create an opportunity to help working families save.”
Sens. Ben Cardin (D-MD), Bob Casey (D-PA), Amy Klobuchar (D-MN), and Michael Bennet (D-CO) co-sponsored the bill.
More than 100 million Americans of working age do not have retirement assets in a 401(k)-type plan, an IRA, or a pension plan, according to the National Institute on Retirement Security.