New retirement account option for U.S. farm households
In fact, only 7 percent of farmers and ranchers contribute to the types of Individual Retirement Accounts (IRA) that can provide helpful tax advantages, with just 3 percent of the general population having an IRA.
That’s why the U.S. Department of the Treasury launched a new tool, known as myRA, for anyone interested in a simple method to start saving for retirement.
It costs nothing to open an account, there are no fees, and contributions are invested in a U.S. Treasury security that safely earns interest.
Farmers can contribute as little as a few dollars each month, or even create automatic contributions from their bank account or paycheck, up to $5,500 per year.
When they’re ready, they can roll over these savings into a private sector Roth IRA at any time to continue growing they savings. ■