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Obama Administration to Launch New Retirement Plan

money-graphThe Obama administration is planning to introduce a new retirement account for the U.S. workers, CNN reported Thursday.

Melanie Hicken writes President Barack Obama inked a presidential memo during his State of the Union address on Wednesday to authorize the Treasury Department to form the government-backed retirement plan myRA.

Employees with household income of lower than $191,000 per year can invest in the account in a manner similar to Roth IRA savings, according to the report.

Investments start at $25 and account holders can contribute up to $5,500 per year, the report says.

Hicken writes savers must submit their accounts to a private sector Roth IRA when the balance reaches $15,000 or the account has been open for 30 years.

Members who would transfer to another job or contribute from other jobs are able to maintain the accounts, CNN reports.

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