Maryland employers: there’s a better retirement
solution than MarylandSaves
Offering a retirement plan is required in Maryland — but you don’t have to settle for the state’s default program. MarylandSaves is limited in its flexibility and may not align with your business or your team’s needs. WealthRabbit’s SIMPLE IRA give you more control, broader investment options, and tax advantages to deliver a retirement benefit your employees will truly value.
What is MarylandSaves?
MarylandSaves is Maryland’s state-mandated retirement savings program for employers that don’t offer their own plan. Businesses with at least one W-2 employee, have been in business for two or more years, use an automated payroll system must register or certify an exemption. Employees aged 18 or older are enrolled in a Roth IRA funded through payroll deductions. While the program helps employees start saving, it offers limited flexibility for employers and does not allow matching contributions.
Registration deadlines
All eligible employers share one annual compliance date:
- Employers with 1+ employee: December 1, 2022
- Newly Mandated (1+ Employees): December 31st of each year
Non-compliance penalties
Failure to comply with the MarylandSaves mandate does not currently carry direct fines. However:
- Employers who do not register or certify an exemption by December 31 will not qualify for the $300 SDAT annual report filing fee waiver.
What you’re missing with MarylandSaves?
MarylandSaves is designed to check a compliance box - but for businesses and employers, it often falls short:
- Limited investment optionsEmployees can’t build customized retirement portfolios.
- No employer benefitsBusinesses spend time managing compliance, but don't receive tax incentives.
- Lower contribution limitsEmployees can save only $7,000 ($8,000 if 50+), which is much lower than SIMPLE IRA limits.
- Minimal growth potentialLimited funds can mean lower returns for employees over time.
- Harsh penaltiesNon-compliant Maryland businesses do not face direct fines, but they forfeit the $300 annual SDAT filing fee waiver if they fail to register or certify exemption
Ready for a retirement solution that works better for your business?
SIMPLE IRA: The Smart Alternative to MarylandSaves
A SIMPLE IRA plan offers significant advantages over the state-mandated option, providing tax benefits for employers and greater growth potential for employees. It's a powerful tool for attracting and retaining talent.
- Tax credits Qualify for up to $5,500 in tax credits for starting a new plan.
- Employer tax deductions Contributions you make are tax-deductible as a business expense.
- Higher contribution limits Employees can contribute up to $16,500 (2025) or $20,000 if age 50+ in a SIMPLE IRA far more than MarylandSaves’s Roth IRA limit of $7,000.
- Investment flexibility Employees get access to a wide range of investment options, not just a few target-date funds.
- Attract & retain talentOffering a superior retirement benefit makes your company more competitive.
See How Much You Can Save with a SIMPLE IRA
Small businesses can take advantage of tax credits to help cover setup and administrative costs. By launching a new plan with auto-enrollment, you could qualify for up to $5,500 in tax credits!
How tax credits work
Tax credits are designed to offset the cost of setting up and administering, as well as contributing to the employees retirement savings.
Employers can claim up to $5,000 per year for three years to offset plan setup and administrative costs. They may qualify for additional tax credits.
- Auto-enrollment bonusIf you make the plan automatic (employees are enrolled unless they opt out), you get an extra $500 credit for 3 years.
- Employer contributionsYou may also get credits for money you put into employees' accounts (up to $1,000 per employee in the early years).
Together, these credits can add up to thousands in savings for your business. Curious how much you could claim?
Try our calculator and see exactly how much you could save.
Estimate your tax credit
Disclosure*
The SIMPLE IRA tax credit calculator is intended to estimate the average tax credit for your business. Please note, it does not constitute tax or legal advice.
Elevate your retirement savings with WealthRabbit
Looking for an alternative to MarylandSaves? With a WealthRabbit SIMPLE IRA, Maryland businesses can meet state requirements while offering employees a more modern retirement benefit.
- Self-onboardingEmployers and employees sign up on their own—retirement plans are up and running in just a few clicks.
- Seamless payroll integrationWealthRabbit seamlessly connects with your payroll system to ensure accurate and timely contributions for every employee.
- Streamlined plan rolloversEasily roll funds from your existing retirement plan into WealthRabbit—no hassle, no delays.
- Automated contributionsEnjoy a hands-off approach to retirement savings. Set up automatic deposits so your team never misses a contribution.
- Employee & employer portalsManage contributions and investments anytime, anywhere — with real-time access to performance and account activity.
MarylandSaves vs. WealthRabbit SIMPLE IRA
A quick look at how WealthRabbit’s SIMPLE IRA compares to Maryland’s state program.
| Feature | MarylandSaves | WealthRabbit IRA |
|---|---|---|
| Administrative effort | Streamlined process with automated setup and payroll integration | Automated setup + payroll sync + minimal oversight |
| Retirement options | More diverse investment options, customizable based on business needs | Broader options+ employee guidance tools |
| Eligibility criteria | Employers in operation 2+ years, at least 1 W-2 employee over age 18, and uses automated payroll | Participation is open to employers with <100 employees earning >$5000. A required contribution is either a 3% dollar-for-dollar match or a 2% nonelective contribution. |
| Monthly fees | No employer fees: $30 annual account fee (charged quartely at $7.5) plus 0.18% to 0.27% asset-based fee | Low cost: $29 /month + $4 per employee |
| Employee experience | Basic account with limited tools for employees | Unified dashboard + literacy resources + rollover support |
| Employee Contribution limits (2025) | $7,000 ($8,000 if 50+) | $16,500 ($20,000 if 50+) + employer contribution |
| Employer contributions | Not allowed | Matching or nonelective contributions |
Frequently asked questions
An employer is required to either register for the program or certify an exemption if they meet all of the following criteria:
- Have been in business for at least two years
- Have at least one employee age 18 or older
- Use an automated payroll system
- Do not offer a qualified retirement plan (such as a SIMPLE IRA)
Employers that offer an eligible, qualified plan, such as a SIMPLE IRA through WealthRabbit, are exempt and must certify their exemption with the state.
Eligible Maryland employers must register or certify an exemption by December 1, 2022. Meeting this deadline also qualifies your business for the $300 SDAT annual report filing fee waiver. WealthRabbit helps ensure your business stays compliant automatically, so you don’t risk missing the deadline.
If your business already offers a qualified retirement plan, you are not required to participate in MarylandSaves. However, you must certify your exemption annually to remain compliant and qualify for the SDAT filing fee waiver. This certification process is straightforward and can be completed online using your Employer Identification Number (EIN) and SDAT number.
Alternatively, WealthRabbit offers a flexible, employer-controlled retirement solution that can help you meet MarylandSaves requirements while providing greater customization, higher contribution limits, and seamless payroll integration.
If you have questions about your specific deadline, contact WealthRabbit support for assistance.
Employers do not contribute to employee accounts and do not pay program fees. Your responsibility is to register, add employees, and facilitate payroll deductions. Using WealthRabbit gives you the same ease of administration with added control, including customizable employer contributions, robust reporting, and automatic payroll integration.
Retirement planning that supports your success
Join hundreds of small businesses and individuals building real financial security with
WealthRabbit - fully digital, fully automated, fully yours.