MarylandSaves Launching in September

Daniel M. O'Connell - CPA/PFS, CVA

Originally from Hagerstown, MD, Dan joined PKS in 1995 and became a Partner in 2005. He is extremely active in the community, lending his expertise to several organizations throughout the area. A highly organized individual, Dan enjoys helping his clients reach their financial goals. Dan lives in Bishopville with his wife Stacy and their two children, Cassidy and Grady. Outside of work Dan enjoys spending time with his family, boating, fishing and anything to do with vintage automobiles.

Governor Hogan has rolled out the MarylandSaves program mandating that most employers will be required to offer their employees a type of retirement savings plan.  The program is in the pilot stage and is scheduled to launch in September. 

This is what we know:

  • The Employer makes no financial contributions and pays no fees. However, the annual report filing fee is waived each year if the Employer participates.  If you already have a retirement plan in place, you may still qualify for the $300 waiver.
  • The Employee can opt in and out at any time within the regulations of the bill.
  • Employer must be in business for more than 2 years and have at least one W-2 employee without a plan in place.
  • The Employer must use an automated payroll system to be eligible.
  • The Employer can offer its’ own retirement solution, such as 401(k), 403(b), SIMPLE IRA, SEP, governmental deferred comp or traditional pension plan. However, it doesn’t include payroll deduction IRAs. 
  • The Employer shall automatically enroll covered Employees in the program, unless the Employee selects to opt out in accordance with procedures.
  • Unless otherwise specified by the Employee, a participating Employee shall contribute 5% of gross income with a 1% annual increase until it reaches 10%.  Contribution rates can be increased or decreased at any time.
  • The contributions are invested in a Roth IRA account.  Roth IRA contribution and income limits do apply. It is unclear who is responsible for monitoring the limits.
  • The Employer should be receiving an email from MarylandSaves when they are eligible to register or opt out. 
  • Please visit to read more on the details to this program.

There are a few exemptions for the following businesses:

  • Startups that have operated for fewer than two years.
  • Businesses that offer or have offered a voluntary payroll-based retirement savings plan in the past two years.
  • All government entities (federal, state and local).

This program is in the very early stages and guidance on some of these details are still forthcoming.  We are working diligently to keep you apprised of the most up to date information that is provided.  Please contact PKS to assist you in determining what type of retirement plan is best for your business’. 


PKS & Company, P. A. is a full service accounting firm with offices in Salisbury, Ocean City and Lewes that provides traditional accounting services as well as specialized services in the areas of retirement plan audits and administration, medical practice consulting, estate and trust services, fraud and forensic services and payroll services and offers financial planning and investments through PKS Investment Advisors, LLC.

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