Maryland Retirement Plan Mandate…what we know

WHEN?

• Deadline for registration is 12/31/22
• Maryland $aves is open 9/15/22 to all that are eligible

 

WHO IS ELIGIBLE?

• Employer must have automated payroll
• Employers with 1 or more W2 employee
• Employers who don’t sponsor a current retirement plan
• Employers whose business was founded on or before January 1, 2021

WHAT ARE MY CHOICES?

• Do nothing and pay the $300 fee
• Start your own custom retirement plan
• Join the state-sponsored Maryland $aves program
• Certify you already have a retirement plan with Maryland $aves

HOW MARYLAND $AVES WORKS?

• Employees are auto-enrolled at 5% of gross salary.
• Employees must opt-out if they don’t want to participate
• Deferrals are auto-increased 1% each year to a max of 10% of salary
• State directs ROTH IRA accounts to be opened and restricted to 4 investment options