President Obama offered the nation a new government-controlled retirement option called my Retirement Account (myRA) with the goal of replacing current 401(k)s under the guise of creating a way for all Americans to save their money.

Obama said : "Today most workers don't have a pension. A Social Security check often isn't enough on its own. And while the stock market has doubled over the last five years, that doesn't help folks who don't have 401(k)s. . . MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little or nothing for middle-class Americans, offer every American access to an automatic IRA on the job, so they can save at work just like everybody in this chamber can."

According to the White House State of the Union fact sheet myRA is part of the new "opportunity at work" scheme involving the creation of a "new starter account to help millions save for retirement."

Americans wanting to participate in myRA "must have a place to invest their hard-earned savings that provides an appropriate balance of risk and return, and many private sector providers do not offer retirement savings options tailored to smaller balance savers. Our retirement system should help these potential savers and encourage them to begin building their retirement security."

The fact sheet states: "The President will take executive action to create a simple, safe and affordable "starter" retirement savings account available through employers to help millions of Americans save for retirement. This savings account would be offered through a familiar Roth IRA account and, like savings bonds, would be backed by the U.S. government."

Obama sold the idea by focusing on investment and investors with a loose promise to reduce retirement related tax breaks for higher-income earners.

The intention is to have myRA replace Roth IRAs with the promise that withdrawal on the account would be penalty-free.

With only $25 minimum investment and payroll deductions of $5 per paycheck, the assumption is that employees can take advantage of differing rates to suit their needs and ability to save money.

Qualifying households would earn upwards of $191,000 annually.

Statistically speaking, 53% of working-age households cannot afford to save for retirement based on their current standard of living.

Another unfortunate statistic shows that 59% of new middle class retirees outlive their savings.

In reality only 68% of the working class has access to their retirement benefits; while only 54% even participate .

Reports state that this new retirement scheme points out "what US employees have long known: Retirement security stinks in this country and 401(k)s are not the answer. Retirement accounts should be universally available — you shouldn't have to depend upon an employer to offer them. The problem isn't that Americans don't have enough ways to save for retirement — they have too many. Look at the alphabet soup of plans from 401(k)s, 403(b)s, 457s to Roth IRAs. Why not consolidate them and make the tax breaks uniform through credits? Make a universal plan with low fees accessible to everyone — regardless of where they work."

According to the Investment Company Institute (ICI): "While we welcome the President's effort to create new retirement savings opportunities, it is with regret and deep concern that we heard his comments about reducing the retirement tax incentives that have been part of the foundation for the success of the private sector retirement system for all Americans, including hard-working middle income Americans."

The president explained that he would direct the US Treasury Department (USTD) to create myRA accounts in order for Americans to "invest in government savings bonds that guarantee a decent return with no risk of losing what you put in."

This will create "a new savings bond [that] guarantees a decent return with no risk of losing what you put in."

The president intends to direct the USTD to special interest-paying bonds that target young consumers who are planning for retirement.

Reports state that the Obama administration "is expected to encourage employers to offer the investment vehicles to employees who would be automatically enrolled unless they specifically elected not to participate."

Obama said: "Today, most workers don't have a pension. A Social Security check often isn't enough on its own. And while the stock market has doubled over the last five years, that doesn't help folks who don't have 401(k)s."

The Employee Benefit Research Institute (EBRI) claims that 59% of workers ages 16 years and older are eligible for 401(k)s, statistically speaking.

This voluntary retirement plan is designed to ensure that participating corporations can have restructured IRAs where "workers won't pay taxes on the wages diverted into the myRA, but they would pay penalties for cashing out before retirement age. The money can be rolled over into an ordinary IRA without penalty, though — and will have to be after the account reaches a certain balance."

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