Making Your Retirement Accessible Act or the MyRA Act
This bill amends the Internal Revenue Code to establish an employee retirement option known as a MyRA account. A MyRA account functions as a Roth Individual Retirement Account. An employee who elects to establish a MyRA account may contribute any portion of a tax refund or make automatic payroll contributions to the account.
The funding of MyRA accounts is limited to retirement savings bonds issued by the Department of the Treasury with a specified interest rate and maturity date.
The bill imposes a tax on any employer who fails to comply with the requirement for making direct deposits to a MyRA account of wages designated by an employee.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3653 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 3653
To provide for MyRA accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 15, 2017
Mr. Crowley (for himself and Mr. Ellison) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide for MyRA accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Making Your Retirement Accessible
Act'' or the ``MyRA Act''.
SEC. 2. MYRA ACCOUNTS.
(a) In General.--Section 408A of the Internal Revenue Code of 1986
is amended by adding at the end the following:
``(g) MyRA Accounts.--
``(1) Special rule for contributions from tax refunds.--A
taxpayer may elect to contribute any portion of an overpayment
of income tax for a taxable year to a MyRA account. The amount
elected under the preceding sentence--
``(A) shall not exceed the amount allowed as a
credit under section 25B for the taxable year, and
``(B) shall not be treated as qualified retirement
contributions for purposes of section 219.
``(2) Direct deposit.--The Secretary shall provide for
direct deposit of refunds from overpayments of income tax by a
taxpayer to the MyRA account of a participant.
``(3) MyRA account defined.--For purposes of this
subsection, the term `MyRA account' means a Roth IRA which
meets the requirements of section 3106(d) of title 31, United
States Code.''.
(b) MyRA Program.--Section 3106 of title 31, United States Code, is
amended by adding at the end the following new subsection:
``(d)(1) The Secretary shall, in accordance with this subsection,
establish and carry out a program of individual savings accounts to be
known as `MyRA accounts' under which the Secretary shall, upon receipt
of contributions in cash by or on behalf of a participant, issue
retirement savings bonds to the MyRA account of the participant.
``(2) In carrying out the program under paragraph (1), the
Secretary shall--
``(A) administer a MyRA account for each participant and
credit bonds issued to the participant to the MyRA account of
the participant,
``(B) serve as custodian of assets in the program,
``(C) issue retirement savings bonds described in paragraph
(4), and
``(D) issue to each participant an annual statement
relating to the participant's MyRA account.
``(3) For purposes of this subsection, the term `MyRA account'
means a Roth IRA (as defined in section 408A of the Internal Revenue
Code of 1986) established by the Secretary on behalf of a participant.
``(4) A retirement savings bond issued under this subsection
shall--
``(A) earn interest at the same annual percentage rate as
securities issued to the Government Securities Investment Fund
in the Thrift Savings Plan for Federal employees, as determined
under section 8438(e)(2) of title 5, United States Code,
``(B) shall be compounded daily at \1/360\ of the annual
percentage rate,
``(C) shall have a maturity date that is indeterminate and
may differ for each bond issued, but that does not exceed the
earlier of 30 years from the date the bond is first issued on
behalf of the participant or when the total value of all such
bonds held on behalf of the participant in the MyRA account
reaches $15,000,
``(D) shall cease to bear interest on the date of maturity,
and
``(E) shall be redeemed by the Secretary upon maturity.
``(5) Upon reaching maturity the Secretary shall transfer the
entire amount in the MyRA account in a manner that meets the rollover
requirements of section 408(d)(3) to a Roth IRA (other than a MyRA
account) of the participant administered by a trustee who meets the
satisfaction requirements of the Secretary under section 408(a)(2). For
purposes of this paragraph, the Secretary shall make transfers to
eligible trustees on a rotating basis unless the participant elects
otherwise.
``(6) The Secretary shall accept contributions from employers on
behalf of employees by direct deposit.
``(7) The Secretary shall accept contributions from participants by
direct deposit.
``(8) Participant information under the program under this
subsection shall be exempt from disclosure to the public.
``(9) The Secretary shall issue a quarterly report to Congress--
``(A) listing the number of accounts created in that
quarter, the total number of accounts in existence, the overall
value of assets in the accounts, and the number of taxpayers
per zip code (of the taxpayer) who have created accounts; and
``(B) the names of employers who paid fines for failure of
the employer to notify their employees of these accounts.
``(10) The Secretary shall issue such regulations or other guidance
as may be necessary or appropriate to carry out this subsection.''.
(c) Employer Requirements.--
(1) Chapter 43 of the Internal Revenue Code of 1986 is
amended by adding at the end the following:
``SEC. 4980J. FAILURE OF EMPLOYER RELATING TO MYRA ACCOUNTS.
``(a) Imposition of Tax.--There is hereby imposed a tax on the
failure of any employer to meet the requirements of subsection (e) with
respect to any employee.
``(b) Amount of Tax.--
``(1) In general.--The amount of tax imposed by subsection
(a) on any failure with respect to any employee shall be $100
for each day in the noncompliance period with respect to such
failure.
``(2) Noncompliance period.--For purposes of this section,
the term `noncompliance period' means, with respect to any
failure, the period beginning on the date the failure first
occurs and ending on the date the notice to which the failure
relates is provided or the failure is otherwise corrected.
``(c) Limitations on Amount of Tax.--
``(1) Tax not to apply where failure not discovered and
reasonable diligence exercised.--No tax shall be imposed by
subsection (a) on any failure during any period for which it is
established to the satisfaction of the Secretary that any
employer subject to liability for the tax under subsection (d)
did not know that the failure existed and exercised reasonable
diligence to meet the requirements of subsection (e).
``(2) Tax not to apply to failures corrected within 30
days.--No tax shall be imposed by subsection (a) on any failure
if--
``(A) any employer subject to liability for the tax
under subsection (d) exercised reasonable diligence to
meet the requirements of subsection (e), and
``(B) such employer provides the notice described
in subsection (e) during the 30-day period beginning on
the first date such employer knew, or exercising
reasonable diligence would have known, that such
failure existed.
``(3) Overall limitation for unintentional failures.--
``(A) In general.--If the employer subject to
liability for tax under subsection (d) exercised
reasonable diligence to meet the requirements of
subsection (e), the tax imposed by subsection (a) for
failures during the taxable year of the employer shall
not exceed $500,000.
``(B) Taxable years in the case of certain
controlled groups.--For purposes of this paragraph, if
all persons who are treated as a single employer for
purposes of this section do not have the same taxable
year, the taxable years taken into account shall be
determined under principles similar to the principles
of section 1561.
``(4) Waiver by secretary.--In the case of a failure which
is due to reasonable cause and not to willful neglect, the
Secretary may waive part or all of the tax imposed by
subsection (a) to the extent that the payment of such tax would
be excessive or otherwise inequitable relative to the failure
involved.
``(d) Liability for Tax.--The employer shall be liable for the tax
imposed by subsection (a).
``(e) Employer Requirements Relating to MyRA Accounts.--
``(1) In general.--An employer who pays wages to any
employee through direct deposit shall make contributions
through direct deposit to the MyRA account of the amount of
wages designated by an employee who elects to participate in
the MyRA program under section 3106(d) of title 31, United
States Code.
``(2) Exception.--Paragraph (1) shall not apply to any
employer with respect to an employee if the employer offers an
employer-sponsored qualified retirement plan to the employee.
``(3) Notice requirement.--Each employer shall, in each
paystub, provide a uniform notice to employees on how the
employees can create a MyRA account.''.
(2) The table of sections for chapter 43 of such Code is
amended by adding at the end the following new item:
``Sec. 4980J. Failure of employer relating to MyRA accounts.''.
(d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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