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The Maryland Small Business Retirement Savings Program is expected to begin in September 2022. Commonly referred to as MarylandSaves (or Maryland$aves), it requires businesses that use an automatic payroll system to offer employees a retirement plan or sign them up for this state-sponsored retirement program.
A long time in the making
Lawmakers created this state-sponsored retirement program to address the national retirement crisis at the local level. Governor Larry Hogan signed MarylandSaves into law in 2016 and the program was slated to begin in mid-2020. After being delayed by the COVID-19 pandemic, a pilot version was launched in June 2022. This offered participating employers the opportunity to share their feedback and insights to help shape the statewide program that launches later this year.
Compliance is easy
Under Maryland law, eligible businesses have just one requirement. If your company is unable to offer employees a retirement plan, you must sign them up for MarylandSaves. Once that is done, your company:
The following Maryland businesses are exempt from participating:
Commercial businesses that offer this IRA-based retirement savings plan or another qualified plan will have the $300 annual report filing fee waived. Companies that offer an employer-sponsored retirement plan can opt out of having to sign employees up for MarylandSaves.
Do you have questions about MarylandSaves?
UHY has the answers for Maryland businesses. We also have extensive experience providing audit, tax, and advisory services for a variety of commercial entities. To learn more about how UHY can help you, please fill out the form to the right and hit submit.