Hatch Welcomes Treasury’s Decision to End “myRA” Program
"I appreciate the
According to the Washington Examiner, the program, created by
Full text of the letter below:
The Honorable
Secretary,
I appreciate the
In 2014, responding to an Executive Order by
Rather, the previous administration made a unilateral decision to construct the myRA[TM] scheme citing
In laying the groundwork for the myRA[TM] program,
The DOL letter essentially argued that myRA[TM] activities are immune from application of ERISA requirements, because "...we do not believe
Employers were at risk, in that an employer who promoted a myRA[TM] Roth IRA program to employees is at risk of being an ERISA fiduciary. The DOL letter argues that such a risk does not exist. However, the analysis upon which the DOL letter's conclusion is based is unconvincing, inexplicitly discounts existing legal precedent and, I believe, deeply flawed.
Private sector firms were at risk, in that the promotion by any firm of its Roth IRA services and advice that a myRA[TM] Roth account holder transfer account balances to the firm's Roth IRA might have subjected the firm to the risk of having made fiduciary investment advice and having become a fiduciary providing investment advice. The DOL letter does not address this risk.
Officials at the
Officials at the
You, the Treasury Secretary, faced risk, in that the Treasury Secretary risked being a "fiduciary" and/or a "disqualified person" within the meaning of ERISA and/or the Internal Revenue Code with respect to the myRA[TM] Roth IRA by reason of
Innocent American taxpayers faced a risk, in that myRA[TM] Roth account holders might have standing, individually or as a class, to bring a lawsuit against the federal government for breach of fiduciary duty. Enrollees in the myRA[TM] Roth program are provided with only one investment option--shares in a pooled fund established by
It is difficult to imagine a private-sector fiduciary who would not face sanctions if they steered a retirement investor into such a scheme as their sole investment.
It is also difficult to establish that the myRA[TM] Roth scheme has been successful. Over years of attempts at uptake, my understanding is that
Aside from the surreptitious manner in which the myRA[TM] Roth scheme was established, there are significant risks posed by the scheme to employees, American taxpayers, and the
Given the unacceptable risks presented by continuation of the myRA[TM] Roth program established in the
Sincerely,
[1] Transportation,
[2] For example, the bi-partisan Retirement Enhancement and Savings Act of 2016 (S. 3471, S. Rpt. 114-375, 114th Cong.), which was reported out of the
Read this original document at: https://www.finance.senate.gov/chairmans-news/hatch-welcomes-treasurys-decision-to-end-myra-program
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