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
- Who administers the program?
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The Maryland Small Business Retirement Savings Program has selected Vestwell State Savings, LLC, dba Sumday Administration, as the program’s new administrator. Vestwell State Savings, LLC is a wholly owned subsidiary of the Vestwell Holdings Inc. Sumday is an experienced retirement and college savings services provider and will act as the IRA trustee, manage account records, operate the website www.MarylandSaves.com, receive and process retirement contributions and distributions, and provide customer service.
- What is the Target Retirement Date option?
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A Target Retirement Date option is an age-based investment option designed to help manage investment risk and is based on two factors: an investor’s current age and approximate estimated retirement date. This type of option includes a mix of investments — stocks, bonds, and cash equivalents — that evolve over time to focus on growth for younger investors and to help preserve savings closer to retirement age.
- Where do my automatic contributions go?
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They’re deposited into a Roth IRA that is yours to keep for life and that you control.
- What is the standard contribution rate?
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The standard contribution is 5% of your gross income (which is the total amount you make in your paycheck before any taxes or deductions are taken out). You can choose to save more, or less, in 1% increments.
- Can I contribute a set dollar amount per paycheck instead of a percentage?
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At this time, our payroll process is set up to process percentages only. If you’d rather contribute a fixed dollar amount each month, you can add a bank account to your WorkLife Account and contribute that way.
- Can I have a WorkLife Account plus another retirement savings plan?
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Yes. Many people have more than one retirement account and you can contribute to more than one savings plan or account at a time. However, the federal tax code limits the total contributions you can make for all Traditional and Roth IRAs you own.
- Can employers match employee contributions?
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No. Federal law does not permit employer contributions to IRAs.
- Can I roll over another plan’s money into my MarylandSaves account?
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Yes, you can, but please consult with a tax expert or financial advisor before making any changes, to better understand any steps to take and restrictions that may apply. Rollovers from pre-tax retirement plans like 401(k)s and 403(b)s will be taxed to convert them from pre-tax to post-tax status for inclusion in a Roth IRA.
- How are my contributions made?
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Every pay period, your employer will deduct your contribution from your paycheck, based on your set savings rate, and will send your contribution to your personal WorkLife Account. You can also make your own contributions through your bank account or by check, using a paper mail-in form.
- How will I know if my WorkLife Account is close to the annual IRA contribution limit?
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MarylandSaves will monitor your account and notify your employer to stop contributions when you are nearing the limit. However, MarylandSaves will not have information on your contributions to another Roth IRA, or any other IRAs you may have. You should ensure that the total of all your retirement accounts is within the IRS’s annual limits. Please consult a tax expert or financial advisor to discuss your specific circumstances.