Establishing and Opening your myRA

By | January 18, 2016

You may establish a myRA if you receive Compensation and your AGI is not in excess of the amounts described below and have either a Social Security Number or Individual Tax Identification Number. To establish a myRA, you must complete and sign all applicable documents. An MyRA can be a great tool to save for retirement for many Americans.


What is an Inherited myRA?

In general, an Inherited myRA is established upon the death of an Individual who has already established a myRA, the in favor of each Beneficiary of that myRA. However, if a surviving spouse Beneficiary of a myRA whose owner is now deceased elects to treat the myRA as the spouse’s own, the myRA is established as the surviving spouse’s own myRA. In addition, if such a spouse has already established a myRA, the myRA that the spouse elects to treat as the spouse’s own will be consolidated with the spouse’s already established myRA.


How to open an MyRA?

Your myRA will be considered opened when you have provided Comerica with all of the documentation that Comerica requires, including, but not limited to, as applicable, an executed Acceptance Form, ESIGN Notice and Consent, online acceptance of these Master Terms and taxpayer identification certification, and Comerica has noted the myRA as open on its records. Comerica requires identification and taxpayer information in order to open a myRA. Comerica may also independently verify your identity through the comparison of identifying information you or your 5 representative have provided with information Comerica obtains from a consumer or business reporting agency, public database or other source. Accordingly, you agree to provide true, accurate and complete information on all forms required by Comerica and agree to inform Comerica anytime there is a material change to such information.

Contributions to a myRA?

Contributions to a myRA are not tax deductible. The maximum amount that you may contribute to a myRA for any Tax Year is, subject to the limitations discussed in Section 3.2 below, the lesser of (a) 100% of your taxable Compensation for the year or (b) the Applicable Amount, less any contributions to other IRAs. If you are age fifty (50) or older, your Applicable Amount includes a Catch-Up Contribution. The limit on myRA contributions is reduced by contributions to any other IRA for the same Tax Year.


How to make contribution to a myRA?

Contributions to your myRA may be made through ACH transactions at any time, in any frequency and in any amount, subject to the contribution limits discussed in this Section 3.1 and Section 3.2. Contributions (other than those made by a direct deposit deduction from your wages) can be set up as one-time contributions or recurring contributions. If contributions are made by deduction from your wages, the contributions are made each pay period in the amount specified on the direct deposit form you provide to your employer, or, if available to you, thought your employer’s online direct deposit authorization process. There is no per deposit minimum contribution amount.

How much can you contribute to a myRA?

In general, contributions to your myRA for any Tax Year are limited to the lesser of (a) 100% of your Compensation or (b) the Applicable Amount. However, if your AGI exceeds certain limits (which depend on your income tax filing status), the Applicable Amount may be reduced to as low as zero. The following chart describes these AGI limits and associated reductions to the Applicable Amount.

Rollovers and Transfers to myRA

Rollovers and transfers to myRAs are not permitted, except in the event of (a) the death of a myRA owner whose Beneficiary has a myRA and (b) the divorce of a myRA owner whose former spouse has a myRA and will receive a portion of the myRA owner’s myRA in the divorce. In the event of either exception, only the amount of the myRA to be transferred to the recipient may be rolled over or transferred to the recipient’s myRA.


Terminating a myRA Account

You may request that your myRA be closed or to transfer your myRA to another institution at any time. If you transfer the assets in your myRA to another institution, those assets will help in a private-sector Roth IRA, which may have fees associated with it. Your myRA will be automatically closed by Comerica once it has been open for thirty (30) years or when the balance reaches $15,000, whichever happens first. Prior to closing your myRA, Comerica will contact you so that you can provide Comerica with written instructions to transfer all the assets of your myRA to the trustee or Custodian of another Roth IRA. You agree that, if after Comerica’s reasonable efforts to contact you, you cannot be reached, Comerica will act as your attorney-in-fact to establish a Roth IRA for you at a financial services provider selected through a process established by the U.S. Treasury.


MyRA Account to Roth IRA Account

Except as the U.S. Treasury may otherwise determine, your Roth IRA will be opened at Comerica. You agree that Comerica may transfer to that financial services provider the balance held in your myRA and all of your financial records relating to the myRA, including personal and identifying information sufficient for the financial services provider to comply with customer identification requirements to open a Roth IRA for you. In order for a financial services provider to open a Roth IRA for a customer, IRS rules require that you enter 9 into a trust or custodial agreement with the financial services provider.


Saver’s Tax Credit and MyRA

If you have contributed to your myRA and have an AGI below a certain level, you may be eligible for the saver’s tax credit under Code Section 25B for that year’s contribution. In 2015, to be eligible, you AGI must be below: (a) $61,000 for married couples filing jointly; (b) $45,700 for heads of household; and (c) $30,500 for single or married Individuals who are filing separately. Changes in these amounts may occur annually to reflect cost of living adjustments.

Who is eligible for the Saver’s Credit and myRA?

Those eligible for the saver’s tax credit may take the tax credit by filing Form 8880 with their income tax returns. The following chart shows the amount of the saver’s tax credit for different kinds of filers for 2015. Amount of Saver’s tax credit AGI of Individual Married filing jointly Head of Household Single and Others 50% of first $2,000 deferred $0 – $36,500 $0 – $27,325 $0 – $18,250 20% of first $2,000 deferred $36,501 – $39,500 $27,326 – $29,625 $18,251 – $19,750 10% of first $2,000 deferred $39,501 – $61,000 $29,626 – $45,750 $19751 – $30,500 6