Maryland Saves: 2026 Guide for Employers and Workers
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Close to one million private-sector workers in Maryland had no retirement plan at work. Maryland Saves is the state's fix. It's a simple savings account that runs through payroll, and many people just call it MD Saves.
Below, you'll learn who must sign up, what it costs, how to register, and how the deduction looks on your pay stubs. That last part matters to owners and workers alike.
Key Takeaways
- Maryland Saves is a state-run Roth IRA funded by payroll deductions, with no cost to employers.
- Businesses with at least one employee, two years of history, and automated payroll must join or offer their own plan.
- Workers start at 5% of gross pay and can change or stop it at any time.
- Joining or claiming the waiver by December 31, 2026 saves $300 on the 2027 SDAT filing fee.
What Is Maryland Saves?
Maryland Saves is the state's auto-IRA program for private-sector workers whose employers don't offer a retirement plan. Employees save through payroll deductions into a Roth IRA called a WorkLife Account. Employers pay no fees, make no contributions, and carry no fiduciary duty; they just register and send deductions.
It launched statewide on September 15, 2022. A state board that includes the State Treasurer and the Secretary of Labor oversees it.
How Maryland Saves Works for Employees
Workers who are 18 or older with a Maryland job can join. After enrollment, you get 30 days to opt out or pick your own rate. Otherwise, these defaults apply.
| Feature | 2026 Rule |
|---|---|
| Default savings rate | 5% of gross pay (you can pick 1% to 100%) |
| Automatic increase | 1% each January (after six months enrolled), up to 10% |
| Yearly limit | $7,500, or $8,600 at age 50+ |
| Roth income cap (MAGI) | Phase-out starts at $153,000 single, $242,000 joint |
| Where money goes | First $1,000 to the Emergency Savings Fund, then a target retirement date fund |
| Saver fees | $30 a year plus an asset fee from about 0.18% |
The target retirement date funds use BlackRock LifePath Index funds. You can also pick a bond index option or a global growth stock option.
Maryland Retirement Plan Mandate: Who Must Register?
Under the Maryland retirement plan mandate, a business must register for MarylandSaves or offer its own qualified plan if it has operated for at least two calendar years, has at least one employee, and runs an automated payroll system. Businesses with no employees or manual payroll can certify an exemption.
There's no fine today for skipping it, but the state does send eligible businesses a deadline.
Self-employed? You aren't covered by the rule, but you can still open an account and save on your own.
Exemptions and the $300 Fee Waiver
You don't need to join if you already sponsor a qualified retirement plan, such as:
- A 401(k) or other 401(a) plan
- A 403(a) annuity plan or 403(b) plan
- A SEP plan or SIMPLE IRA
- A 457(b) government plan
Offering a plan also earns a waiver of Maryland's $300 annual report filing fee. It's automatic if you send program deductions. With your own plan, you must claim the fee waiver every year. File by December 31, 2026 to cover your 2027 fee. Trade names (IDs that start with T) and sole proprietors (IDs that start with L) can't get it.
How to Register for Maryland Saves
Most employers finish in under 15 minutes. Here's the order:
- Find the access code the state mailed or emailed you. If it never came, request one.
- Gather your EIN, your SDAT ID, and a business email.
- Start on the employer registration page and set a password.
- Add your payroll provider and pay schedule.
- Connect the bank account that will send deductions.
- Upload each worker's name, Social Security number, birth date, address, and contact details.
After the 30-day window, start sending deductions with each payroll run.
How Maryland Saves Shows Up on a Pay Stub
It's a Roth deduction, so it comes out after taxes and doesn't lower taxable wages, Social Security, or Medicare. On the stub, list it with the after-tax items.
Here's a $1,000 weekly paycheck at the 5% default rate:
| Pay Stub Line | Amount |
|---|---|
| Gross pay | $1,000.00 |
| Social Security (6.2%) | $62.00 |
| Medicare (1.45%) | $14.50 |
| Federal and Maryland income tax | Varies by Form W-4 and Form MW507 |
| MarylandSaves Roth (after tax) | $50.00 |
Taxable wages stay at $1,000. Over a year, that's $2,600 saved, well under the limit.
A common payroll mistake is setting it up as pre-tax, which wrongly lowers W-2 Box 1 wages. Workers should check their first two stubs after enrolling. Owners can use our Maryland paystub generator to keep this line clear.
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Conclusion
The program gives small teams a no-cost way to offer retirement savings, and it gives workers an easy way to start. Register or claim your waiver by December 31, 2026, then check that the deduction looks right on every stub. Need clean records for your team or yourself? Our pay stub generator builds accurate stubs in minutes.
- 1. Enter Your Information
- 2. Select Your Favorite Theme
- 3. Download Your Stub!
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