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MarylandSaves Automatic IRA Program Rolls Out September 2022

MarylandSaves Automatic IRA Program Rolls Out September 2022

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:

  • Has no payment or fiduciary obligations
  • Has no federal reporting requirements
  • Pays nothing to MarylandSaves for the service
  • Commercial businesses will receive $300 per year via a waiver of the Maryland business annual filing fee

The following Maryland businesses are exempt from participating:

  • Startups in operation for less than two years
  • Those that offer or have offered a voluntary payroll-based retirement savings plan – such as a 401(k) – in the past two years
  • All federal, state, and local government entities

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.

 

09/07/2022

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