MarylandSaves Program Launched September 6, 2022
MarylandSaves is a new retirement savings program that is a simple and seamless way to help Maryland employees save and plan for the future.
Sponsored by the State of Maryland, the new program will require eligible employers to establish a retirement savings plan for their employees. It is also the first to include retirement income and emergency savings components.
Under MarylandSaves, employers with an automated payroll system are required to establish a payroll deposit retirement savings arrangement for employees through a state-run trust. If your business offers a qualified retirement plan to your employees, you are not eligible to participate in MarylandSaves.
Other Key Things to Know
- Qualified businesses are those that have been in business for two or more years and have at least one W-2 employee who is over the age of 18.
- You will also be qualified if you don’t currently offer a payroll-deducted retirement savings program to your employees.
- Small businesses that meet these criteria may opt to establish their own retirement savings program for employees as an alternative to MarylandSaves.
- Employers who offer the IRA-based retirement savings plan or another qualified plan will have their $300 annual report filing fee waived.
- Employers can opt out of the program if they offer their own employer-sponsored retirement plan.
- Employees will be automatically enrolled in the MarylandSaves program unless they opt out or are subject to an employer-sponsored retirement plan.
GSG Can Help
Our team is fully prepared to help you learn more about MarylandSaves so you can provide an easy way for your employees to enhance their retirement planning efforts.
Please reach out to your GSG client contact for immediate assistance.Categories: Tax, Small Business, Employee Benefit Plans