There are more than 1 million Marylanders who do not have a retirement plan through their employer. Some employers think a plan would be too expensive, others do not think their employees would be interested. Either way, the bottom line is that many folks will reach retirement without having saved adequately. So the STATE has mandated that every employer ,but for a few exceptions, must have a retirement plan. If you have a plan in place, you don’t have to change anything, if you don’t have a plan, the Maryland Saves program may be the alternative for your consideration.
The Maryland Saves program is an employee funded program. There are virtually no costs to the employer. Contributions are made by the employee through payroll deductions . These monies are invested in a ROTH IRA and participants have a variety of investment options. The first $1000 will be invested in an emergency fund. The accounts are portable and employee access is fully available. As previously mentioned, there is no employer cost, with a very small employee cost .
While this program is mandated, there is no current fine if you don’t comply, but there will be. There is a great website at www.marylandsaves.org. As an incentive to participate, the State will waive the $300 SDAT fee if you have a plan in place by Dec. 1.
If you are interested in Maryland Saves, you should also take a look at the SACC 401(K) plan, available only to Salisbury Area Chamber of Commerce members. Offering low fees and expenses and complete record keeping, it is a relatively new program. For additional information, you can contact Steve Smith at 410-251-6907 or Jill Hall at Landmark Insurance at 410-651-2110.
