![]() ![]() If you imagine a program at scale with 50 million accounts averaging $5,000 in balances, the cost to taxpayers would be $2.5 billion per year for every point of interest rate premium. This program will have a modest cost to taxpayers: Essentially, instead of issuing short-term Treasury bills at almost no cost, the federal government will do a little bit of its borrowing through this G Fund-like security, paying an extra point or two of interest in the process. It was established by Congress in the Federal Employees’ Retirement System Act of 1986 and offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans. Similar to the 401 (k) plans offered by private-sector employers, TSPs offer five core. The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. In 2012, with 3-month Treasury rates effectively at zero, the G Fund returned 1.47%.īasically, the idea is to get retirement accounts to people who normally wouldn't have them, by making them available at little cost to either employer or employee, and offering the inducement of a little extra yield. Thrift Savings Plans (TSPs) are direct-contribution retirement plans offered to U.S. The value of the difference varies over time this chart from TSP Folio shows how the G Fund generally outperformed T-Bills by a percentage point or two from 1987 to 2010. That's a nice little interest rate bonus. This fund has all the advantages of short-term Tre asury bills (no credit risk or interest rate risk) but pays an interest rate based on the average of outstanding long-term Treasury bond rates. The accounts would be invested in a security similar to the "G Fund" available to federal employees participating in the Thrift Savings Plan. Voluntary rollover and withdrawal would be availalble anytime, and it looks like normal Roth IRA withdrawal penalty rules would apply. ![]() Accountholders could accrue balances of up to $15,000, at which point they'd have to roll the balance over into a regular, private Roth IRA.and offers the opportunity for you to produce a learning folio of work that is. You just have to make less than $191,000. TSP is offered across Epworth HealthCare for registered nurses either. Almost any employee of a participating employer could join.Employers wouldn't run or fund the accounts, but they'd participate by letting employees fund them through payroll deductions, which could be as small as $5 per pay period.Remember, a Roth IRA is a retirement account where you contribute after-tax earnings, and can then withdraw money in retirement without ever paying tax on your investment returns. MyRA would be a program of small Roth IRAs with access to a special, safe investment that pays a little better than Treasury bills.Basically, it's a program of starter retirement accounts aimed at people who don't have a lot of savings. Now, we have additional info on the program from the White House. Account icon An icon in the shape of a person's head and shoulders. ![]()
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