The Maryland Saves Program became available on September 15, 2022. Maryland employers that have been in operation for at least 2 calendar years, have at least one W-2 employee, and use an automated payroll system must offer their employees some type of retirement savings program. The chart below illustrates a brief summary of the program.
| Feature | State IRA Plan | Employer Sponsored 401k |
| Plan Type | Automatic Payroll Deduction Roth IRA | Pre-tax, Roth AND Employer Contributions |
| Contribution Limits | Limited to $7,000 (2024) | $23,000 (plus more if over age 50) |
| Compliance | No penalties at this time | Compliant with state program |
| Eligibility | Age 18 | Employer controls eligibility requirements |
| Plan Costs | $30.00 annual fee and 0.18-0.87% asset-based fee paid from the employee’s account | Dependent on type of plan design chosen. |
| Tax Deductible | NO | Employer contributions are tax deductible |
| Tax Credit Available | $30.00 annual fee and 0.18-0.87% asset-based fee paid from the employee’s account | Plan costs qualify for available tax credits |
| Default Contribution | 5% of pay unless employees opts out. First $1,000 is contributed to an Emergency Savings Account for the employee. | Employee choice |
| Auto Escalation Feature | Yes, 1% up to a maximum of 10% | NO |
| Minimum Employees to Participate | At least one W-2 employee | Any Number |
| Investments | Guaranteed investment contract on first $1,000 and then appropriate Target Date Retirement, Bond Index or Global Growth Stock option. | More than 25 funds in a variety of Morningstar categories |
