(CNSNews.com) – Bit by bit, the Trump administration is reversing policies and programs implemented by President Obama.
The latest to hit the chopping block is Obama’s retirement program created to help low- to middle-income earners start saving for retirement.
In its announcement, the Treasury Department said it will “wind down” myRA (“my Retirement Account”) after a review determined it was not cost effective:
“Demand for and investment in the myRA program has been extremely low. American taxpayers have paid nearly $70 million to manage the program since 2014,” the announcement said. “Unfortunately, there has been very little demand for the program, and the cost to taxpayers cannot be justified by the assets in the program.”
The Treasury Department said it will be “communicating frequently with participants to help facilitate a smooth transition to other investment opportunities,” which exist in “ample” numbers, said U.S. Treasurer Jovita Carranza.
In his January 28, 2014 State of the Union speech, President Obama said, “Let’s do more to help Americans save for retirement.” He announced that he would direct the Treasury to create a new way for working Americans to start their own retirement savings.
Obama described MyRA as “a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in.”
But the Trump Treasury Department says retirement savers have options in the private sector that offer no account maintenance fees, no minimum balance, and safe investment opportunities.
Participants in the myRA program are being notified of the upcoming changes, including information on moving their myRA savings to another Roth IRA. Participants are encouraged to visit www.myRA.gov for additional information.