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This is why we'll never see any real reform, in terms of streamlining or simplification, of anything the government does. Once a program is in place it's nearly impossible to eliminate because someone will scream they are getting screwed.
I do think there would be some loss across the board in compensation by the way of employer match.
Or the law could be tweaked to allow a reasonable employer match. Employers can already directly deposit employees' paychecks into the individual employee's bank of choice; there's no reason the same couldn't be done with regards to an IRA or Roth IRA if the law allowed it.
The trouble with MyRA is that no one joined in. It was a costly program for little gain. The program fell because there was no mandatory investment. Those that have 401k had no desire or incentive. Those that don't have access to a 401k but know the importance of saving for retirement are using IRA (traditional and Roth) as well as other tax advantaged funds don't need nor want to do have another under performing fund.
^^Yes, this.
They should fix the problems with the existing 401k system, such as streamlining the regulations to make the administrative costs lower for small businesses. Pretty much everyone from across the political spectrum agrees this needs to be done.
Sigh this was one of my alternatives to Savings bonds. I already have a 401k and an IRA. I'm just annoyed. There goes another way for me to save.
Along with not having the option last year to put part of the refund in the MyRA, the option to buy savings bonds was also gone. Why on earth? That is suspicious. I'm really feeling dumb that I can't figure out why the government is making it so hard for regular people to buy bonds. At least that is what is seems like to me.
Sigh this was one of my alternatives to Savings bonds. I already have a 401k and an IRA. I'm just annoyed. There goes another way for me to save.
Along with not having the option last year to put part of the refund in the MyRA, the option to buy savings bonds was also gone. Why on earth? That is suspicious. I'm really feeling dumb that I can't figure out why the government is making it so hard for regular people to buy bonds. At least that is what is seems like to me.
Since I am legitimately curious, how was this better than a savings bond in a plain vanilla brokerage account (given you're not paying taxes on federal debt regardless)? I tried to figure out a good reason why a person would want this account when it was first released and came up with nothing.
Sigh this was one of my alternatives to Savings bonds. I already have a 401k and an IRA. I'm just annoyed. There goes another way for me to save.
Along with not having the option last year to put part of the refund in the MyRA, the option to buy savings bonds was also gone. Why on earth? That is suspicious. I'm really feeling dumb that I can't figure out why the government is making it so hard for regular people to buy bonds. At least that is what is seems like to me.
Quote:
Originally Posted by ALackOfCreativity
Since I am legitimately curious, how was this better than a savings bond in a plain vanilla brokerage account (given you're not paying taxes on federal debt regardless)? I tried to figure out a good reason why a person would want this account when it was first released and came up with nothing.
ALOC I am in agreement, with one caveat. I actually thought that once started they would realize that the best thing to do with the program would be to send it to Blackrock Financial. They are running TSP and could easily set the system on sound footing.
I think there should be a program that a person can bring from employer to employer. It could make much more sense for those who work someplace that has not setup a 401k. All that would be required is a direct deposit slip and HR to take the deposit out from gross or net pay depending on category or tIRA or Roth.
They should fix the problems with the existing 401k system, such as streamlining the regulations to make the administrative costs lower for small businesses. Pretty much everyone from across the political spectrum agrees this needs to be done.
We need incentives for small business to offer 401k plans.
They put a blanket limit of IRA + 401k=$23.5k/$18k traditional. That way if you have no access or a crap 401k plan you can go with the IRA and have the same limits.
What is going on? First the government makes it VERY HARD to buy savings bonds...now they stop MyRA? Got notified by mail. Here is the info: Washington, D.C. – The U.S. Department of the Treasury today announced that it will begin to wind down the myRA program after a thorough review by Treasury that found it not to be cost effective. This review was undertaken as part of the Administration’s effort to assess existing programs and promote a more effective government.
I think if a broker came up with the idea the Government would have said it is not fair to the investor. It was a bad product.
You could have done the same thing by opening an IRA. Since this was aimed at low income tax payers probably a ROTH would have been better. Inflation alone would have been a big problem.
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