Get answers to frequently asked questions
Maryland’s new state-sponsored retirement savings program is open right now. It was created to help nearly one million Marylanders who work but don’t have access to employer-sponsored retirement plans. We understand you’ll have questions. Here are the answers to some frequently asked questions. If you have additional questions, we’re here to help.
- Account Access
- Contributions
- Eligibility
- Employer Registration
- Fees and Costs
- General
- Investments
- Linking Bank Accounts
- Saver's Credit
- Security
- Tax Forms
- Withdrawals
- If my income comes from Social Security or something besides a paycheck, can I still join MarylandSaves?
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No, to qualify for any IRA under IRS regulations you need earned income.
- Are there income limits to participate in MarylandSaves?
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Yes. Most individuals who earn more than $144,000 per year aren’t legally allowed to contribute to Roth IRA accounts (the legal form of MarylandSaves WorkLife Accounts). If an individual’s income is between $129,000 and $144,000 the maximum annual contribution is reduced. If you want to make sure you can contribute, refer to this publication from the IRS to help you calculate your Modified Adjusted Gross Income (MAGI). Your MAGI will determine how much you are able to contribute to your Roth IRA account.
- I’m self-employed. Can I set up my own MarylandSaves account?
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Yes, if you are 18 or older, have earned income, work in Maryland, and are eligible to contribute to an IRA, you can sign up yourself here. You can set up automatic contributions through your bank account or contribute by check using a mail-in paper form after your account has been set up.
- What are the opt-out and opt-in rules for MarylandSaves?
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You can opt out at any time online, by calling 1-833-811-7438, or by mailing in a completed Opt-Out Form to the program. And you can always rejoin at any time by notifying your employer that you would like to start contributing to your account again.
- Could joining MarylandSaves impact my eligibility for college financial aid?
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Generally, not while your money stays in your account. Withdrawals from IRAs can affect financial aid for the year following the withdrawal but in general retirement accounts are not counted towards federal financial aid. Of course, to be sure, you can consult with a tax expert, financial advisor, or your financial aid office.
- Could joining MarylandSaves impact my eligibility for federal programs like SNAP or TANF?
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In general, qualified retirement accounts are not counted as assets against a person's eligibility. For more information, check with your benefits office.
- Is investing in MarylandSaves WorkLife Savings Account the same as putting money in a bank?
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No, there are important differences. Banks offer checking services and loans that MarylandSaves does not. Banks do offer savings and investment accounts; however, these generally have higher fees than MarylandSaves. Furthermore, bank savings and investment accounts don’t offer the special retirement services that MarylandSaves will.
- What about market volatility?
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Investing for your retirement means setting a long-term goal to grow your savings. Investments will fluctuate — there’s no way to time your investment activity only to benefit from positive gains. Your MarylandSaves WorkLife Account offers investment options with various risk levels. Choose the one(s) that best fit your risk tolerance.
- How can I learn more about investment options?
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You can get general information about the options here, or talk to a financial advisor about your investment options.
Details about the expense ratios and other information for the funds used in the MarylandSaves workplace savings program can be found online at:
Emergency Savings Fund:
Lincoln Guaranteed Investment Contract Products
All BlackRock options:BlackRock LifePath Index Retirement Fund
BlackRock LifePath Index 2025 Fund
BlackRock LifePath Index 2030 Fund
BlackRock LifePath Index 2035 Fund
BlackRock LifePath Index 2040 Fund
BlackRock LifePath Index 2045 Fund
BlackRock LifePath Index 2050 Fund
BlackRock LifePath Index 2055 Fund
BlackRock LifePath Index 2060 Fund
BlackRock LifePath Index 2065 Fund
BlackRock LifePath Index 2065 Fund
Income option:
State Street Aggregate Bond Index Fund
Growth option:T Rowe Price Global Growth Stock Fund
In addition to the expense ratios, there are also asset-based fees and annual account fees for the Program, regardless of which investment option you choose. These fees and expense ratios go towards managing and running the MarylandSaves retirement savings program and the underlying investments, respectively.
- Who is responsible for choosing the available investment options?
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The Maryland Small Business Retirement Savings Program, whose members are chosen by the Governor and the Legislature, are responsible for operating the program and choosing its administrators and investment options. They have done so after consulting with various experts and comparing multiple options and firms for each option.
You can find out more about the Board and the program at MarylandSaves.org.