Maryland Saves Has Arrived: Make Sure Your Clients Know Their Options

To give Maryland workers a better chance to save for their futures, the state created the MarylandSaves program. It’s a state-administered Roth IRA that is designed to be a simple and stress-free retirement savings solution for employers and employees.

Though this may seem like a simple and low-maintenance option for your clients, it may not be the best choice. Let’s take a deeper look at your clients’ options so you can help them make an informed decision.

Key Takeaways:

• Eligible businesses must register to enroll in MarylandSaves unless they offer a qualifying retirement plan.
• There are penalties for non-compliance.
• MarylandSaves may seem like a simple choice, but it may not be the smartest.
• An ePlan Services 401(k) plan could mean major saving opportunities for your clients.

What is MarylandSaves?

MarylandSaves, a Roth IRA savings program created by the state of Maryland to ensure that all workers have access to retirement and emergency savings. Through automatic enrollment, a percentage of the employee’s paycheck is transferred into their Roth IRA accounts. For employees, participation is voluntary. They can choose to stay enrolled or opt out at any time if they wish.

Is MarylandSaves mandatory for business owners?

Eligible Business owners who do not currently offer a retirement plan must enroll in MarylandSaves or another qualifying retirement plan. Business owners may be eligible for enrollment if they meet these conditions:

• They’ve been in business for at least two years.
• They have at least one employee 18 years old or older.
• They use an automated payroll system.

Luckily, MarylandSaves is not the only option for retirement savings. A suitable alternative such as an ePlan Services 401(k) retirement plan will allow plan participants to make higher plan contributions as well as allow employers to make matching or profit-sharing contributions. This can help employees to save even more for retirement.

What are the benefits of an ePlan 401(k) retirement plan?

Aside from higher contribution rates for plan participants, employers stand to gain as well. Qualifying business owners who establish a new plan could receive up to $5,000 each year for 3 years in tax credits. An additional credit of $500 for 3 years is available for qualifying employers utilizing automatic enrollment. You can even show them their savings potential in real time with our Tax Credit Estimator.

As their trusted advisor, you can even sweeten the deal by informing them that if they start a new plan with ePlan Services, they’ll receive $1,000 off their setup fees. That’s $1,000 dollars of additional savings! But inform them quickly because this offer only lasts through December.

Conclusion:

It’s your duty to ensure that you keep your clients informed of all their options so they can make an educated decision. Help your clients realize that they could be leaving up to $6,000 on the table by not enrolling in an ePlan Services 401(k) retirement plan. For more information on how you can collaborate with us to continue helping your clients while boosting your book of business, reach out to our experienced sales team today!