Can I make withdrawals?

The simple answer: Yes, if and when you need to take money from your account, you can simply make a withdrawal. However, in some instances you should understand that there could be a small cost that you will pay on your next year’s tax return. MarylandSaves itself doesn’t charge any administrative fee for withdrawals.

Your WorkLife Account is legally a Roth Individual Retirement Account. It was designed to help you save for retirement over the long term so in many cases there are tax costs for using it before you retire. For these reasons, investment earnings that you take out before age 59½ and before you’ve had your Roth IRA for five years will be taxable and subject to ten percent penalty. These costs are not large: For example, if you withdraw $100 from your Emergency Savings Fund you could expect to pay approximately about 44¢ in penalties and taxes. You may wish to consult a tax advisor to be sure you understand the impact of any withdrawals you make. You can get more details here.