Hello and welcome to the Money Girl Podcast. My name is Laura Adams. I'm a personal

finance expert and author who loves helping you master your money. My mission for this show

is to give you practical, actionable tips and advice so you can live rich and love the

journey. Let me take you back to January 28, 2014. If you saw or heard

the State of the Union address that evening, you might remember that President Obama

announced a new type of retirement

account called a My R.A. Now almost two years later the program is up and running.

In this show I'll explain what a my-RA account is. Cover the pros and cons. Tell you

who's eligible to have one and how to set it up. As always, don't worry about taking notes because

I post the transcript for each show on the

moneygirl page at quick and dirty tips.com. This is episode number 427 called

What is a My R.A retirement account? And if you want automatic access to each show, I send out an

email with a summary and a link to the article and audio file when you're signed up for

my email updates. It's easy, just text me. Text the phrase

get updates to the number 3344 and you'll be on my list.

Now let's focus on retirement accounts. My RA is short for my retirement account and it's essentially a Roth IRA but with more limitations.

First I'll cover the similarities between a MyRA and a Roth IRA

and then I'll highlight three major differences you should know.

With both a MyRA and a Roth IRA, you make contributions on an after-tax basis,

which means they're not deductible on your tax return.

Unlike a traditional IRA that does give you a tax deduction up front

these non-deductible accounts offer a future tax break instead. Here's how it works. After you reach the

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