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MarylandSaves Explained: A Guide for Business Owners
MarylandSaves is a state-initiated retirement program introduced to help Maryland-based businesses and nonprofits give their employees access to a retirement savings option—without requiring employer contributions or administrative overhead. Officially launched on September 15, 2022, this initiative offers an affordable and simple way for companies to support employee financial wellness.
MarylandSaves became available statewide in September 2022.
Once a business signs up, all eligible employees are automatically enrolled, though they can opt out.
Participation is required for businesses that have existed for two or more calendar years and employ at least one W-2 worker, unless they already offer a qualified retirement plan.
This guide from Beyond will walk you through how the program operates, eligibility rules, and the registration process.
MarylandSaves was originally proposed in 2016 as the Maryland Small Business Retirement Savings Program and Trust. Its goal was to give an estimated one million private-sector workers who previously had no retirement plan a secure, state-supported savings option. The program is built around a Roth IRA structure and includes an emergency savings component.
Employers could begin enrolling as of September 15, 2022, and early registrants were eligible for a waiver of the $300 Annual Report Filing Fee. Those who enrolled in 2023 can request a similar waiver for 2024.
By default, workers at enrolled businesses are signed up for the plan and can opt out within 30 days.
Yes, Maryland law requires participation if all of the following apply:
The business is registered and operating in Maryland
It employs at least one W-2 worker
It does not already offer a qualified retirement plan
The business has been active in Maryland for at least two years
Employees are paid via an automated payroll system
Your business is exempt if it offers one of the following retirement plans:
401(k) or 401(a)
403(a) or 403(b)
408(k) SEP IRA or 408(p) SIMPLE IRA
457(b) deferred compensation plan
New businesses (under two years old), sole proprietors, and independent contractors are also exempt, though they can opt in voluntarily. Exempt businesses must submit a certification through the MarylandSaves website.
The program offers a Roth IRA model where 5% of an employee’s gross wages are automatically deducted and deposited. The first $1,000 goes into an Emergency Savings Fund invested with Lincoln National Life Insurance Company, which guarantees a fixed interest rate.
After the emergency savings threshold is reached, future contributions are redirected to retirement-focused investments, including:
Target Retirement Date funds
Bond Index options
Global Growth Stock funds
Eligibility Requirements for Employees:
Single filers: MAGI must be under $153,000 (2023)
Married filers: MAGI under $228,000 (2023)
Annual contribution limit: $6,500 (< age 50), $7,500 (50+)
Self-employed Marylanders may also join, with an initial $500 deposit or recurring $5 bank contributions.
To sign up, visit marylandsaves.com and gather the following:
State Department of Assessments and Taxation (SDAT) number
MarylandSaves Access Code (requestable if not received)
You’ll need to provide:
Business contact info
Payroll details
Preferred payment method (ACH, paper check, or ACH push)
Employee data (SSN or ITIN, DOB, address)
Once completed, you’ll receive a confirmation and gain access to the Employer Dashboard for ongoing management.
Employers pay nothing to participate.
Employees pay an annual $30 fee (billed quarterly) and a 0.18% asset-based fee.
To learn more about the MarylandSaves program, check out these resources from Beyond:
MarylandSaves offers a low-cost, low-effort way for employers to help employees secure their financial future. With automatic enrollment, flexible investment options, and no required employer funding, it’s a smart solution for businesses looking to support their teams while staying compliant with state mandates.
