Get answers to frequently asked questions
MarylandSaves is a workplace savings program created to make it easy for Maryland businesses to help their employees save. The State of Maryland wants all Maryland businesses to be able to offer retirement savings, but many do not because they don’t have the people, time, or money to buy a plan, pay the fees, and make contributions. The MarylandSaves program is designed to make it easy and free to help your employees save.
Here are answers to many of the common things we’ve been asked. If you have questions beyond these, we’re here to help. Just drop us a line.
- Who is responsible for choosing the investment options for participants?
The Maryland Small Business Retirement Savings Program is responsible for making decisions about the investment options available to participants of the program. Individual savers can choose among those options. Employers aren’t responsible either for the options or for their employees’ choices.
- Do I need to report contributions on my employees’ W2s?
No. The MarylandSaves program is structured as a payroll deduction IRA and not as a traditional retirement plan that needs to be reported on your employees’ W2s. The IRA trustee for the MarylandSaves program will file “Form 5498, IRA Contributions Information” with the IRS (as needed for your employees) and will send employees a copy for their records, no later than May 31 of each year.
- Can the State use money from this program to pay for other programs?
No. Employees’ contributions go directly to the MarylandSaves WorkLife Accounts in their names in funds that, by law, are managed by private investment firms. The State has no involvement with these funds and there is no connection to other retirement plans offered by the State for state employees.