Treasury Ends Obama-Era Program to Help Workers Save for Retirement

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President Barack Obama ordered the creation of these so-called starter accounts three years ago, and they became available at the end of 2015. Since then, about 20,000 accounts have been opened with participants contributing a total of $34 million, according to the Treasury, with a median account balance of $500...

Jovita Carranza, the United States Treasurer, said in a statement that demand for the accounts was not high enough to justify the expense. The myRA program has cost $70 million since 2014, according to Treasury, and would cost $10 million annually going forward.

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The myRA program was deemed a conservative way to save -- and tailored for people who were not accustomed to investing in the markets -- because account owners could not lose money. The funds were invested in United States Treasury savings bonds, which paid the same variable rate as the Government Securities Fund, available to federal employees through the government retirement plan.

The closure of myRA is the latest step taken by the Trump administration to reverse Obama-era savings initiatives and investor protections. Earlier this year, President Trump requested the review of a rule that requires brokers to put their customers' interest first when handling their retirement money. He also signed a joint resolution that reversed a rule that would have made it easier for states to create their own retirement savings programs.