The 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.