The MarylandSaves Small Business Retirement Savings Program which was signed into law on July 1, 2016 is open for mandatory registration by all covered employers as of September 16, 2022. The program requires covered employers to facilitate optional employee contributions, through payroll deductions, to individual retirement accounts run by the state and administered by a nine-member board.
Most employees are eligible to participate if they are age 18 or older.
Next Steps for Employers
An employer is required to register for the program, distribute program materials to and enroll employees, withhold and remit their contributions to the program fund and comply with various other program requirements if it:
- Has been engaged in business (for profit or nonprofit) in Maryland at all times during the current and preceding calendar year;
- Has at least one employee with Form W-2-reportable wages;
- Uses an automated payroll system or service;
- Is not a federal, state or local government employer; and
- Has not currently, or at any time in the past two calendar years, offered employees a private, tax-qualified retirement savings plan (e.g., a plan under IRC § 401(k), § 403(b), § 408(A), § 408(B), etc.).
Employers that register for the program by December 1, 2022, will have their $300 Maryland Department of Assessment and Taxation annual report filing fee waived starting in 2023 and every year after that in which they participate in the program.