Making Your Retirement Accessible Act

Summary: 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.

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.