Q&A: How myRA, a new retirement account, works

A government-backed individual retirement account announced nearly two years ago by President Barack Obama is now available across the country, the Treasury Department said Wednesday, and it removes several barriers that keep millions of people from saving for their retirement.

The account, called a myRA, has no fees, no minimum balance, no risk of losing money and it doesn't have to be linked to an employer.

MyRAs are aimed at those without access to employer-sponsored retirement plans like 401(k)s, but anyone under certain income levels is eligible.

Workers can have contributions deducted automatically from their paychecks into their accounts, and employers are not charged any administrative fees to do so.

Experts say regular, automatic contributions are a crucial way for people to build nest eggs.

Money can be deposited from a checking or savings account or directly from your paycheck.

MyRA invests in a fund made up mostly of U.S. government bonds called the Government Securities Fund, and it will not lose money.

Another major difference is that with Roth IRAs you can invest in stocks, bonds, mutual funds or other investments.

With myRA, the government hopes it can push more people to start saving for retirement and eventually lead them to opening Roth IRAs.

The government and financial planners caution that this is a way to get people to start saving for their retirements.