The Treasury Department announced it would end myRA, a program similarly structured to Roth, but created under the Obama administration.
It aimed to help low and middle-income workers who didn’t have access to traditional retirement plans through employers.
“Unfortunately, there has been very little demand for the program, and the cost to taxpayers cannot be justified by the assets in the program,” said U.S. Treasurer
Jovita Carranza in a statement.
According to a recent CNN report, around 30,000 people opened a myRA account in the span of three years and only 20,000 of those people had actually saved money in the account. The Treasury Department said it sent emails on Friday morning to all myRA participants
notifying them of the change. Their accounts will remain open until further notice, but those with automatic contributions should stop future transfers, a spokeswoman said.
The Treasury Department said it will be communicating frequently with participants to help them transfer their money into private investments.