Maryland’s state retirement savings program
Under Maryland state law, many businesses with at least one employee are required to offer the state-facilitated retirement program or a qualified alternative.The ePlan Services team is here to help Maryland businesses understand their options and avoid penalties. Reach out today to set up a 401(k) plan in 24 hours.
What to know about MarylandSaves
MarylandSaves is Maryland’s retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA (option to add a Traditional IRA)
- Penalty: TBD
- Employer Requirements: Employers that employ at least one W-2 employee, have been in business for at least two years, use an automated payroll system, and do not offer a qualified retirement plan
- State Website: MarylandSavesopens in a new tab
ePlan Services vs. MarylandSaves
See how Maryland’s retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
IRAs do not qualify
Yes
Matching is not permitted
Yes
Individual accounts
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
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.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
