The choice for Maryland employers: Why a SIMPLE IRA is the smarter alternative to MarylandSaves

If you run a business in Maryland and use an automatic payroll system but do not already offer a qualified retirement plan, you are likely familiar with MarylandSaves, the state-run Roth IRA program.

MarylandSaves ensures your employees have a basic savings option. But does it give your team the flexibility, contribution power, and long-term benefits they really need? That is where a WealthRabbit SIMPLE IRA can make a real difference.

What is MarylandSaves?

MarylandSaves is a state-facilitated Roth IRA program. It automatically enrolls eligible employees, while employers manage registration and payroll deductions. Employers do not contribute, but they are responsible for helping employees participate.

Here is what MarylandSaves looks like in 2025:

• Employee-only contributions (Roth IRA only)

• Contribution limits: $7,000 per year, or $8,000 if age 50 or older

• Investment options: Limited, state-selected

• Employer incentives: None, no tax credits or deductions

• Employer responsibilities: Registration and payroll setup
• Employee flexibility: Can opt out at any time

MarylandSaves provides a baseline, but it does not offer the enhanced features or savings potential that many small business owners want for their teams.

What is a WealthRabbit SIMPLE IRA?

A WealthRabbit SIMPLE IRA is a small business-friendly retirement plan designed for companies with 100 or fewer employees. Unlike MarylandSaves, it allows both employer and employee contributions, unlocking bigger savings and tax benefits.

Key features in 2025:

• Employer contributions: Required 3% match or 2% non-elective

• Higher contribution limits for 2025:

- Standard: $16,500

- SECURE 2.0 - Small employers (25 or fewer employees): $17,600

- Age 50–59 or 64+ catch-up: Additional $3,500 (or $3,850 for small employers)

- Age 60–63 super catch-up: Additional $5,250

• Flexible investment choices to match your team’s goals
• Automated payroll integration with providers like QuickBooks, ADP, Gusto, etc
• No annual IRS filings or complex paperwork
• Compliance automation and expert support for peace of mind

With WealthRabbit, setting up a SIMPLE IRA is fast, simple, and designed to work with your business, not create more work for you.

Why choosing more than the minimum matters

Retirement mandates are becoming more common across the United States. For employees, the difference between MarylandSaves and a SIMPLE IRA can be significant:

• MarylandSaves: Limited to a Roth IRA with $7,000- $8,000 annual contributions
• WealthRabbit SIMPLE IRA: Employees can save more than double with employer contributions and enjoy broader investment options

For employers, WealthRabbit offers advantages beyond compliance:

• Meet state requirements with a qualified plan
• Unlock tax advantages through required contributions
• Provide a benefit that signals long-term investment for your employees

Making the right choice for your business

MarylandSaves gives employees a starting point, but your business can do more. A SIMPLE IRA with WealthRabbit lets your team save more, gives them investment flexibility, and provides tax advantages for your company.

As a Maryland employer, you now face a choice:

• Do the minimum with the state program, or
• Invest in a smarter solution with WealthRabbit SIMPLE IRA, helping your team save more while keeping compliance simple.

Ready to get started?

Do not settle for the minimum. Start a WealthRabbit SIMPLE IRA today, an easy, affordable way to go beyond the mandate and build lasting financial security for your employees.

Disclaimer: This blog is for educational purposes only and is not intended as tax, legal, or financial advice. Please consult a qualified professional regarding your specific situation.