MyRA accounts ending

I think there has finally been some good to come out of this Administration. Treasury Secretary Steve Mnuchin has announced that the MyRA program is being shut down. That's good for the American taxpayer and neutral for the approximately 30,000 people who have these accounts, which have been available for nearly 2 years.

According to the SF Chronicle and other news sources, the bill to administer the program has been $70,000,000.  With 30,000 account holders who are earning Treasury interest rates, the cost to the government has amounted to $1,166 per account per year.

Here's an idea: If the government wants to encourage people to have IRA's, that aren't subject to the $15,000 maximum account value that the MyRA is, create a tax credit that reimburses people for the annual custodial fee of $15 to $30 that some banks and credit unions charge. Vanguard only charges $20 per year, and that only if the retirement account balance is less than $10,000. 

These are reasonable fees for custody and record keeping, and there's a good argument that investors with small balances are discouraged by having to pay these fees. A tax credit to offset that fee solves the problem, without adding yet another type of government controlled retirement program, that has only one investment choice, and requires people to leave the program anyway, after a few years of contributions.