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New retirement account option for U.S. farm households

Staff Writer |
As for actual savings accounts, while 60 percent of all households nationwide participate in some type of a retirement account, just 40 percent of eligible farm households do.

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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.

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