This article explains how fees are applied and what to expect when taking money from your account.
Program Fees
Your account includes ongoing fees that cover program administration and investment costs. These fees are based on your account and are automatically deducted over time.
In the first year, if you choose to stay with the standard options, your account will cost $22.50 plus about 18¢ for each $100 you save. (That’s because MarylandSaves and the program administrator are waiving some fees when your account starts up.) After that, your account will cost $30 per year plus from 18¢ up to about 26¢ per $100 if you stay with the standard options but will be different if you choose other investment options.
There is no asset-based fee for the Emergency Savings Fund. Please see the Program Description for more information about fees.
Withdrawal Rules
Withdrawals from your IRA are subject to federal tax rules.
For Roth IRAs, contributions can generally be withdrawn without taxes or penalties because taxes were already paid on those amounts. Earnings may be taxable and subject to penalties depending on your age and how long the account has been open.
For traditional IRAs, withdrawals are generally taxable as income and may be subject to an additional penalty if taken before age 59½, unless an exception applies.
For guidance specific to your situation, consider speaking with a tax professional.
Administrative Fees for Withdrawals
Some withdrawal methods may include a small processing fee. Electronic transfers to a bank account are free. If you request a paper check, a processing fee will apply.