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
- What happens to my money if I die with no named beneficiaries?
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If you die and have no named beneficiaries, the account will be payable to your estate under the terms of the IRA. Accounts that become unclaimed property will be subject to applicable law.
- How do I know if my employer has signed up for MarylandSaves?
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If you haven’t received a notification of enrollment, you can ask your employer, or call 1-833-811-7437, Monday – Friday, 9 a.m. – 6 p.m. ET.
- Is my employer required to offer the MarylandSaves WorkLife Savings program?
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NO, but under Maryland law, most Maryland employers will soon be required to offer their employees some sort of retirement savings. This can be a traditional pension, a 401(k) plan, a 403(b) plan, a SEP plan, a SIMPLE IRA plan, a governmental deferred compensation plan — or a WorkLife Account from MarylandSaves.
You can ask your employer if they are subject to the new requirement and whether they’re going to use MarylandSaves or offer another form of retirement plan.
- How do I set up my MarylandSaves WorkLife Account online after I’m enrolled?
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If you choose to participate, set up your account here and follow the on-screen instructions. If you need help, just give us a call at 1-833-811-7438, Monday – Friday, 9 a.m. – 6 p.m. ET.
- Is there another way to set up my account or opt out?
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Yes. Just give us a call at 1-833-811-7438, Monday – Friday, 9 a.m. – 6 p.m. ET.
- What happens to my account if I move out of state?
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Your MarylandSaves WorkLife Account belongs to you. If you continue to work for an employer that facilitates the MarylandSaves program, you can continue to participate and continue payroll contributions. If a new employer doesn’t facilitate the program, you can make contributions directly from your bank account. You can also roll over or transfer your savings from your WorkLife Account to an IRA at another investment provider, if that IRA accepts rollovers or transfers.
- What happens to my account if I change employers?
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Your WorkLife Account belongs to you. Your money remains in your retirement savings account under your control. If your new employer facilitates the program, MarylandSaves will notify you and payroll contributions will begin at your new job. You can also opt out at any time. If your new employer offers a qualified, employer-sponsored retirement plan, that employer is not required to facilitate the program. However, you can contribute directly to your WorkLife Account through your bank account or by check, via a paper mail-in form.
- What happens if I opt out?
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You can opt out at any time. If you opt out within the 30-day period after the program notifies you about being enrolled, no payroll deductions will be made from your paycheck, and your account will not be activated. If you choose to stop participating after contributions have begun, payroll deductions will end. You can leave the money in your account for your retirement savings. You can also transfer your money or roll it into another IRA. You may also request a withdrawal, which may be subject to penalties and state and federal taxes. And if you change your mind, you can always opt in again at any time by notifying MarylandSaves.
- Am I eligible for the Saver's Credit from the IRS?
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The Saver's Credit is a federal tax credit you can get for making contributions to your retirement plan. It can be worth from 10% to 50% of your annual contributions, but the eligibility and conditions for the credit are complicated. For more information, visit the IRS website. You may also want to consult with a tax expert or financial advisor.
- What does the program cost? Is there a fee for participating in MarylandSaves?
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Yes. MarylandSaves WorkLife Savings Accounts are set up to cost less than bank accounts or other retirement savings accounts, but they do have fees. In the first year, your account will cost $22.50 plus about 18¢ for each $100 you save. (That’s because MarylandSaves and the program administrator are waiving some fees when your account starts up.) After that, your account will cost $30 per year plus from 18¢ to 85¢ per $100, depending on how much of your money is in emergency savings and how much in other options. Emergency savings don’t have any additional asset-based fee. More information on fees can be found here.
These fees cover the administrative costs associated with the program, such as the cost of maintaining your account, oversight of the program’s investments, providing customer service, keeping records, online and phone services, and the operating expenses of the underlying investment funds in which the investment options are invested.