Maryland Small Business Retirement Savings Program
State of Maryland IRA program
Year enacted |
2016; amended 2018 |
Status |
Not yet active; pilot program expected to launch in summer 2022 |
Employers affected |
Mandatory for all employers that pay employees through a payroll system or service and don't offer an employer-sponsored retirement savings arrangement or haven't provided one in the prior two years, with a two-year deferral for new businesses |
Type of account |
Roth IRA (traditional IRA as an option under consideration) |
Automatic enrollment |
Yes |
Auto-escalation |
Yes (1% per year, up to 10%) |
Default contribution rate |
5% |
Employer contributions |
Not permitted |
Investment options |
Target-date funds (TDFs), a capital preservation fund, an income fund, and a growth fund
Default—The first $1,000 will be put into an emergency savings fund (capital preservation fund). Subsequent contributions will default into an age-appropriate TDF, if no other investment option is selected.
Postretirement—The program has a feature that would automatically provide a monthly payment calculated (but not guaranteed) to last the participant’s lifetime that would begin at normal retirement age, unless a different option is selected by a participant. Also, the program would offer the Maryland Saves Social Security bridge that would permit participants to receive payments from their accounts as a means to delay the commencement of their Social Security benefits. |
Fees |
Annual administrative expenses may not exceed 0.5% of program assets under management |
Website |
Sources: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21 and the program's website. It is subject to change without notice. Please contact the state to learn more.
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