As business leaders, franchise owners know how important it is for their employees to start saving for the future. However, many franchisees, especially those with part-time workers, aren’t in a position to offer retirement savings plans to all of their employees. According to a 2015 Federal Reserve report, among workers who do not participate in a 401(k) or other defined contribution plan, 42 percent say it’s because their employer does not offer one.
The U.S. Department of the Treasury recently launched myRA, a simple, safe, and affordable retirement savings account for workers who don’t have access to an employer-sponsored plan. myRA was designed to be easy for both employers and employees. A franchise owner or franchisee does not need to administer accounts, contribute to them, or match employee contributions. They simply share information with employees and set up payroll deductions into employee myRA accounts. Employers who do not use direct deposit for payroll can tell their employees about the other ways to fund a myRA account – from a personal checking or savings account, or a federal tax refund.
For workers, myRA has no fees, carries no risk of losing money, and has no minimum balance or contribution requirements. In addition, accounts stay with employees, so savers can continue to use the same myRA account even if they move to a new job.
myRA is just one piece of the puzzle when it comes to retirement savings for franchise owners and their employees, but it’s an easy way for people to start taking control of their financial futures.
For more information, visit myRA.gov.
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