Tax Law and News

Help Your Clients Jumpstart Retirement Savings With a myRA Account

Written by Mike D'Avolio, CPA, JD
Modified Mar 6, 2019
1 min read

According to IRS statistics, about 73 percent of individual income taxpayers receive refunds, and the average refund is almost $2,900. However, many fail to save for retirement or save too little. With this in mind, the U.S. Department of Treasury established a simple program where taxpayers can contribute all or a portion of their income tax refund into a starter retirement savings account – a myRA® (my Retirement Account) – through direct deposit.

Tax professionals stand in a unique position to encourage savings at tax time and to share information about these accounts. Here’s what you need to know to advise your clients:

You must set up a myRA account before making a contribution (see link below).
The myRA account is geared towards those who don’t have access to a retirement account at their job or lack other alternatives to save.
The investment is safe and backed by the United States Treasury.
These accounts cost nothing to set up, and participants realize the deferral benefits of a Roth IRA.
Account holders also have the option to transfer their money at any time into an actual Roth IRA which offers diverse investment options.

Mike D’Avolio, CPA, JD, is a tax law specialist for Intuit® ProConnect™ Group, where he has worked since 1987. He monitors legislative and regulatory activity, serves as a government liaison, circulates information to employees and customers, analyzes and tests software, trains employees and customers, and serves as a public relations representative. More from Mike D'Avolio, CPA, JD

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