Maryland Retirement Plan Mandate…what we know
- 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