DigitalPiggyBank

As I’ve written many a time before, GubMints is a big fan of the Thrift Savings Plan (TSP).

Recently the White House Social and Behavioral Sciences Team decided to get ‘Freaky’ with Behavioral Economics and do some experiments to encourage more Active Duty Servicemembers to enroll or re-enroll in the TSP.  They did some interesting experiments to try and ‘move the needle’. Continue reading

TSP Hardship Witdrawal

TSP Hardship Withdrawal Costs

Recently the non-partisan (cough, cough) GAO conducted a study investigating large (> $5 Million) IRA balances.

According to WSJ, this study was prompted by the disclosures of Mitt Romney and Silicon Valley entrepreneur Max Levchin that they each have IRA balances worth tens on millions.

The GAO concluded in its preliminary study (GAO-14-878T):

In 2014, the federal government will forgo (emphasis mine) an estimated $17.5 billion in tax revenue from IRAs.

GAO will release a separate report with its final results on individual retirement accounts later this fall.

What prompted this study? Congress is reportedly upset about the super-sized IRA balances because (according to GAO) :

Congress limited annual contributions to IRAs to prevent the tax-favored accumulation of unduly large balances, but concerns have been raised that tax benefits accrue primarily for higher -income individuals.

Back to the cases of Mitt and Max… Continue reading


Analysis of MyRA Account
Good? Bad? I’m the Guy with the Gun!

Recently POTUS signed an executive order creating the MyRA Retirement Account.

It acts like a Roth Account, with a maximum value of $15,000, and a maximum income eligibility limit of $191,000 per household.

It makes sense to create another option for individuals saving for retirement. We don’t have enough retirement options for individuals/small business owners right now: Continue reading