It is not big news to hear that most people are not saving enough for retirement. To help solve this problem the President has created a new MyRA that will offer retirement savings options to those without a 401K or other retirement plan at work.
I think it will offer a new vehicle for retirement contributions, but I don't anticipate too many people signing up. It offers one investment option (government bonds) and otherwise operates just like a Roth IRA (except getting the original contributions out may be more restrictive). So why would anyone choose this re-branded Roth IRA with fewer options and more restrictions rather than just go with the regular Roth IRA? I can't answer that, unless you just want to put more than 5,500 into the account in one year. Roth IRA's are limited to 5,500 in 2014, while this new MrRA would allow up to 15,000 per year it appears. This may appeal to a minority, but for those just getting started with retirement savings this is not practical.
One benefit I see, it could offer a vehicle for putting away a lot of Roth money in one year, and then roll it over or transfer it to a true Roth IRA that offers reasonable investment options.
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