No IRA? Open a myRA at tax time
If you’ve made a New Year’s resolution to save more for yourself and your family, there are innovative federal and local initiatives to help you succeed. Tax- return season is an excellent time to begin. Setting aside a portion of your tax refund for savings is a good habit and a great way to jumpstart your resolution for a stronger financial future.
Many families worry about how they will afford to pay for the milestones ahead, such as retirement or sending a child to college. They know they should be saving more, but immediate expenses take priority. Saving money for the future is often easier said than done, and if you haven’t started yet, you’re not alone. The question for many families, especially the millions who don’t have access to a retirement plan at work, is where to put that money.
Some workers without a plan through their jobs don’t open an account on their own because they are scared off by fees, minimum balance requirements, or the fear of losing money. Almost 10 percent of workers in Santa Cruz County and parts of Santa Clara County included in the 18th Congressional District are self- employed. Many others do not have employer- sponsored retirement plans through work, according to the Census Bureau.
Fortunately, the U. S. Treasury recently has acted to provide an easy option for Americans without retirement accounts through their employers: a new initiative called myRA. These new myRA accounts have no fees, no minimum balance requirements, and no risk because the investment is backed by the U. S. Treasury. And they are easily opened by visiting http:// myRA. gov.
Opening a myRA requires no contribution from your employer, and if you change jobs, your myRA account travels with you. Whether it’s $ 5 a week or $ 10 a month, it’s a simple, safe and affordable way to start growing your savings for the future.
San Franciscans with young families have access to another tool to start saving for their children’s future: the Kindergarten to College initiative. Through K2C, all San Francisco kindergartners start off with a $ 50 or $ 100 investment from the city, with additional incentives to encourage the families to save up for tuition expenses when their child begins higher education.
With K2C and myRA, we’re equipping families with powerful new tools to grow their savings and build good habits.
With access to the right tools and financial products, families can be more confident in their ability to send a child to college, manage life’s unexpected financial shocks, and plan for their long- term financial security.
Just a few dollars now can help start a savings habit that leads to greater financial stability and security in the future. That’s important for families in San Francisco, throughout California, and across our entire country.
As you await your tax refund, these new, innovative initiatives can help make sure that saving is a New Year’s resolution you can keep.