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
- 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.
- 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 auto escalation?
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Auto escalation is a standard feature of the MarylandSaves workplace savings program. Your contribution amount will increase by 1 percent in January of each year until a maximum of 10 percent is reached. You can opt out of auto escalation at any time.
- How will I know when my contributions will auto escalate?
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MarylandSaves notifies participating savers about auto-escalation prior to any increase.