Maryland Saves Workplace Retirement Program

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

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