The standard contribution rate The standard savings rate for a WorkLife Account is 5% of your gross pay (the amount you earn before taxes), and that amount is deducted from each paycheck. Standard annual increase Unless you choose otherwise, your savings rate will go up automatically by 1% each...
Could I lose money in my MarylandSaves investments?
All investing – whether through MarylandSaves or anyone else – involves some risk, including the risk of losing some or even all of the money you invest. Except for the funds in your emergency savings fund, the value of MarylandSaves investments can and will go up and down depending on changes in...
Could joining MarylandSaves impact my eligibility for college financial aid?
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,...
Could joining MarylandSaves impact my eligibility for federal programs like SNAP or TANF?
In general, qualified retirement accounts are not counted as assets against a person's eligibility. For more information, check with your benefits office.
Do employees need to fill out paperwork to enroll or make changes?
No. Employees are enrolled automatically and do not need to fill out any paperwork. Once enrolled, employees can manage most account functions online. But, if needed, there are paper forms available for certain account changes; these forms can be downloaded, filled out, and sent in. Our customer...
Do employers have to sign their employees up for MarylandSaves?
NO, but MarylandSaves offers a way to meet the State’s requirement at no cost to employer. 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...
Do family members who work for my business count as employees?
Yes, they can participate if they are considered employees for tax purposes.
Do I have to do anything to join MarylandSaves?
No. Once your employer signs you up, you’ll be enrolled automatically, and savings will be deducted from your paycheck automatically and put in your personal WorkLife Savings Account a month later. Unless you direct otherwise, your money will be invested first in emergency savings and then in a...
Do I need to facilitate the program if I only have a few of employees?
The Maryland requirement applies to any Maryland business that has even one W-2 employee IF they use an automated payroll system and have been in operation for at least two years. You can satisfy this requirement by using MarylandSaves or any other form of qualified retirement plan. Qualified...
Do I need to offer the program to work-study students?
Nope. The State’s requirement does not apply to full-time students in work-study programs.