Treasury Shutters Obama-Era Savings Program, Says It Costs Too Much

By:
Chris Gaetano
Published Date:
Jul 31, 2017
STORY NO.6

The Treasury Department announced that it is ending the Obama-era myRA program, which essentially worked as an IRA for those without workplace savings plans of their own, saying that its upkeep was too much considering the comparatively low demand for the service, according to the New York Times. Since first launching in 2015, about 20,000 accounts have been opened in the service, with participants contributing a total of $34 million, with a median account balance of $500. Running the program has cost about $70 million, and was estimated to need an additional $10 million per year to keep the lights on. Mark Iwry, the former senior Treasury adviser credited as the architect for the plan, said shutting the program down after just two years was premature, noting that it is meant to be a long-term investment for working families. 

The Treasury contacted program participants about it ending, and said that they had the option to roll their accounts into a traditional Roth IRA if they so desired. 

Click here to see more of the latest news from the NYSSCPA.