MarylandSaves Offers $300 Fee Waiver for Businesses Registered by December 1

Groundbreaking savings program helps employers comply with new Maryland law

HUNT VALLEY, Md., Nov. 10, 2022 /PRNewswire/ -- MarylandSaves, an innovative retirement savings program, recently announced a $300 fee waiver for any businesses registered in the payroll-deducted program by December 1, 2022. Created by the State of Maryland, this program helps businesses comply with the new Maryland law* that requires most employers to offer a payroll-deducted automatic retirement savings program option for their employees.

MarylandSaves provides workers the opportunity to start a WorkLife Savings Account automatically funded from their paychecks. The program is free for businesses and the State will waive an annual $300 filing fee for businesses that enable automatic employee enrollment every year they participate in MarylandSaves or offer another qualified plan to their employees.

"MarylandSaves is an advance on traditional retirement savings," said MarylandSaves Board Chair Joshua Gotbaum. "It's automatic savings from each paycheck, savings that help with life's emergencies now and can keep helping after people retire and need it most."

WorkLife Savings Accounts are Roth IRAs funded by employees through payroll deductions and are under their control. The first $1,000 will be contributed to an emergency savings fund, which can be used for the unexpected. Contributions beyond that will be invested in a target date fund based on the age of the saver.      

"We've worked hard to make MarylandSaves free, quick, and easy for businesses," said MarylandSaves Acting Executive Director Glenn Simmons. "Employers can register and sign up their employees online, and in many cases, use their payroll processors."

Savers will have multiple investment options to choose from and can decide at any time to change their savings rate, change their investment options, or opt out entirely. They can also withdraw their money or take their account with them when they change jobs. To get started, savers don't have to do anything; if they don't opt out, 5% of their paycheck will be automatically saved.

The program is being administered by a team of established financial services firms including Vestwell and BNY Mellon. All investment options are professionally managed by BlackRock, Lincoln Financial Group, State Street Global Advisors, and T. Rowe Price.    

MarylandSaves will be hosting an invitation-only celebration event on November 16th at Atwater's in Catonsville, MD. Speakers will include The Honorable Treasurer Dereck Davis, Josh Gotbaum, Chair of Maryland's Small Business Retirement Savings Board, Ned Atwater, a MarylandSaves Pilot participant, Hank Greenberg, AARP Maryland State Director, and Glenn Simmons, Acting Executive Director of MarylandSaves. Press are welcome to attend and should contact Stephanie Davis to RSVP.

If you lead a professional association, a non-profit, or a small business, or are interested in opening an IRA through MarylandSaves, go to MarylandSaves.com to learn more.

WorkLife Savings Accounts are individual accounts controlled by each saver, not the employer. They are Roth IRAs and are subject to applicable laws. Participation by employers is free; MarylandSaves charges them no fees. For more information about our program visit MarylandSaves.com.

The program is managed by MarylandSaves' Executive Director and staff and operated through established third-party financial institutions and managers, including Vestwell, BNY Mellon, BlackRock, Lincoln Financial, State Street Global Advisors and T. Rowe Price.  In developing its program, MarylandSaves has been advised by Aon, AKF Consulting, and K+L Gates.

The program is designed to be paid for by fees on invested accounts, not taxpayer funds. The State of Maryland has loaned funds to MarylandSaves to cover startup costs.

*Bipartisan legislation created the Maryland Small Business Retirement Savings Board and charged it with developing an automatic payroll savings IRA program for Maryland businesses that don't offer a retirement plan to their employees. The Board developed the program and under Maryland law its members are legal fiduciaries responsible to program participants.  Information about the Board and MarylandSaves' Executive Director and staff can be found at MarylandSaves.org.

Media contact:
Stephanie Davis
[email protected]
410-403-2782    

SOURCE MarylandSaves