Frequently Asked Questions
Below you'll find many of the common questions we’ve been asked.
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Employer FAQs
Do employers have to sign their employees up for MarylandSaves?
NO, but MarylandSaves offers a way to meet the State’s requirement at no cost to employer.
Under Maryland law, most* Maryland employers will soon be required to offer their employees some sort of retirement savings. This can be a traditional pension, a 401(k) plan, a 403(b) plan, a SEP plan, a SIMPLE IRA plan, a governmental deferred compensation plan — or a WorkLife Account from MarylandSaves. MarylandSaves is not an ERISA plan and does not offer the features of most ERISA plans. However, of these options MarylandSaves is the only one that doesn’t charge the employer a fee.
*This applies to businesses that have been in operation for at least 2 calendar years, have at least one W-2 employee, and use an automated payroll system.
What is considered to be a qualified, employer-sponsored retirement plan?
An employer-sponsored retirement plan includes a plan qualified under Internal Revenue Code sections 401(a) (including a 401(k) plan), qualified annuity plan under section 403(a), tax-sheltered annuity plan under section 403(b), Simplified Employee Pension plan under section 408(k), a SIMPLE IRA plan under section 408(p), or governmental deferred compensation plan under section 457(b). It does not include payroll deduction IRAs.
Can I have a designated employee or payroll services provider complete the registration and enrollment process?
Yep. You can elect to add a “Teammate” as an administrator to your account to help facilitate the MarylandSaves program if you choose not to do it yourself. This could be an authorized employee or even staff from your payroll provider. Best of all, the program is designed to work seamlessly with many payroll provider systems.
If I offer MarylandSaves to my employees now and then decide to offer a qualified retirement plan later, what do I do?
Employers that choose to introduce a qualified retirement plan after enrolling employees in the MarylandSaves program should contact our client services team at 1-833-811-7437 and request to “unregister.” Our team will then take you through the necessary steps.
What if my payroll company won't help me administer MarylandSaves?
You can still offer MarylandSaves to your employees on your own with no complex administration — easily making it a part of your own payroll process. Watch this video to see how facilitating the program involves minimal steps and allows you to focus on your business.
Are workers of only certain immigration statuses eligible for the program? What about undocumented workers?
Only workers with a verifiable Individual Tax Identification Number (ITIN) or Social Security number (SSN) can participate in the program. If a worker's information cannot be verified, the worker will not be enrolled, and an account will not be established for them.
NOTE: Information provided to MarylandSaves regarding ITINs is not shared with immigration or law enforcement agencies.
Saver FAQs
How do I know if my employer has signed up for MarylandSaves?
If you haven’t received a notification of enrollment, you can ask your employer, or call 1-833-811-7437, Monday – Friday, 9 a.m. – 6 p.m. ET.
How are my contributions made?
Every pay period, your employer will deduct your contribution from your paycheck, based on your set savings rate, and will send your contribution to your personal WorkLife Account. You can also make your own contributions through your bank account or by check, using a paper mail-in form.
Will services be available in other languages?
Yes, the call center will offer assistance in English and Spanish and will have access to translation services for other languages. Certain materials are also available in Spanish.
Is there a limit to how much I can contribute?
Contribution limits for IRAs are set by the federal government. For 2023, you can save up to $6,500 per year if you’re younger than 50 and $7,500 per year if you’re 50 or older, as long as you have earned at least that much. This contribution limit applies across all IRAs you may have (both Traditional IRAs and Roth IRAs with the State and elsewhere). Your MarylandSaves Account will automatically stop accepting contributions if you go above the limits in any year.
If you are contributing to a Roth IRA, you also need to meet certain income levels based on your modified adjusted gross income (MAGI). See this publication from the IRS for more information about how your Modified Adjusted Gross Income determines how much you are able to contribute to your Roth IRA account.
Is my contribution pre-tax or post-tax?
Contributions to WorkLife Accounts are made on a post-tax basis. The percentage contributed is based on your gross income earned (the amount you make before any taxes or deductions have been taken out) with your facilitating employer. If you also contribute to a Traditional IRA, those contributions may be deductible on your tax return. It may be best to consult with a tax professional to determine what you can or cannot deduct.
What is the default contribution rate?
The standard contribution is 5% of your gross income (which is the total amount you make in your paycheck before any taxes or deductions are taken out). You can choose to save more, or less, in 1% increments.