General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHave a question about the My IRA Savings Bonds
1. You can no longer buy paper bonds at banks.
2. You have to buy bonds online to be debited from your checking/savings account.
3. or - payroll deduction for those who still do this (generally older companies that have been around a long while)
Will the My IRA purchases be tax deductible? Surely they will, as if you contributed to your 401k but the purchases will be from net dollars, not gross - how will that work out?
Don't get me wrong - I love the idea of setting up Treasury Direct accounts for people to purchase Savings Bonds. They certainly pay better than a simple savings account, and not tied to the volatility of the stock market, and you have complete control of your funds, but, as with any retirement account, I am sure you will get hit with a penalty for withdrawing funds.
I'd like to see more about this. Intriguing if nothing else...
applegrove
(118,022 posts)hfojvt
(37,573 posts)I think CD rates are higher.
I have been, perhaps foolishly, putting my IRA money in CDs for years now.
I am not sure how this MyRA is any different than an IRA.
The IRA is, unfortunately, mainly a retirement fund, and a tax break, for rich people. The contribution limit is $6,000 per person. Who can afford to save that much in a year (besides me)? It is more likely that somebody making over $100,000 a year or more can save the full amount (and thus get the full tax deduction) than it is that a lower income person can do so (unless they are me). Even for me to put away $6,000 or $6,500 (like I did last year) I am saving a far higher percentage of my pay than a richer person would have to.
Art_from_Ark
(27,247 posts)At that rate, it would take 1000 years to double your money
blogslut
(37,955 posts)http://en.wikipedia.org/wiki/Roth_IRA