Tax Time = Time to Save

January 20th, 2016 by

Did you know that retirement is the only thing you can’t borrow money to do? Tax time provides a great opportunity for people
retirementto start saving for the future, which will be here before you know it. Even setting aside a small portion of your refund is a great start. For those who haven’t found an easy way to save, myRA (my Retirement Account) is a great place to start. This tax season, tax filers can get on the path to more secure retirements and, if eligible, take advantage of the Saver’s Tax Credit with myRA.

What is myRA?

myRA is a new starter retirement savings account developed by the U.S. Department of the Treasury. It may be a good savings option for many tax filers, especially for those who don’t have access to retirement savings plans at work — like small business employees, part-time and temporary workers, and the self-employed. myRA is a Roth IRA1 that was designed to remove common barriers to saving and make it easy to get started. Saving with myRA is simple, safe, and affordable:

  • No cost to open, no minimums, and no fees
  • No complicated investment options
  • No risk of losing money
  • Backed by the U.S. Treasury
  • Savers choose the amount to contribute1
  • Money deposited is available when it’s needed2

Tax filers can make the most of their federal tax refunds with just three simple steps:

  1. Open a myRA account before filing a tax return by visiting myRA.gov or calling 855-406-6972.
  2. Provide the appropriate myRA account and routing numbers (111925074) to your tax preparer and indicate the amount of the federal tax refund that should be directed to the myRA account. If depositing a refund into multiple accounts, Form 8888 will need to be completed.
  3. Ask your preparer if you are also eligible for the Saver’s Tax Credit. Individuals may be eligible if they contribute to certain types of retirement savings accounts, like myRA.

Need help getting your taxes prepared? Contact the Volunteer Income Tax Assistance (VITA) program at Neighborhood Improvement Association to find a free tax preparation site near you: 912.447.5577 or www.niacdc.org


1Annual and lifetime contribution limits and annual earned income limits apply, as do conditions for tax-free withdrawal of interest. To learn about key features of a Roth IRA and for other requirements and details, visit myRA.gov/roth-ira.

2Interest earned may be withdrawn without tax and penalty five years after your first contribution if you are over age 59 ½, or if you meet certain other conditions, such as using the funds for the purchase of your first home.