Live mandate
Does my Maryland business have to offer a retirement plan?
Short answer
Maryland requires it, but there’s no fine. If your business has run for at least 2 calendar years, has at least one employee and uses automated payroll, you should offer a retirement plan such as a 401(k) or sign employees up for MarylandSaves. Employers that do either get their $300 annual report filing fee waived.
Who must comply
MarylandSaves applies to employers that have been in operation for at least 2 calendar years, have at least one employee age 18 or older, and use an automated payroll system. Businesses with no employees, or that run payroll manually, are not required to register and can certify an exemption online.
Deadlines
Newly eligible businesses have a December 31, 2026 deadline. Registering and starting payroll contributions by December 31 also qualifies you for next year's $300 State Department of Assessments and Taxation (SDAT) annual report fee waiver. Contributions submitted after December 31 count toward the following year's waiver.
Penalties
There’s no fine. MarylandSaves materials don’t list one and the law doesn’t set one. The incentive is the $300 annual report filing fee, which Maryland waives each year you offer MarylandSaves or another qualified plan. If you do neither, you simply pay the fee.
How to get exempt
If you already offer a qualified retirement plan such as a 401(k), MarylandSaves says you are not required to register. To get the $300 annual report fee waiver, claim it online with your EIN and SDAT number by December 31 each year; you must have made at least one payroll contribution to the plan that year. Businesses with no employees or manual payroll certify an exemption on the MarylandSaves site.
MarylandSaves or a 401(k)?
MarylandSaves accounts are Roth IRAs, so each saver is held to the IRA limit: $7,500 a year in 2026 and 2027, or $8,600 at 50 or older, across all their IRAs. Higher earners can be phased out of Roth contributions altogether, starting at $153,000 of income for single filers in 2026 and $158,000 in 2027. A 401(k) leaves far more room: employees can defer $24,500 in 2026 and $25,500 in 2027, plus catch-ups from age 50. MarylandSaves doesn’t allow employer contributions, so you can’t add a match; a 401(k) can include one. MarylandSaves costs employers nothing to run; savers pay the account and fund fees. New savers start at 5% of pay, rising 1% each January to 10% unless they change it.
Sources
MarylandSaves: Program details (employers) (marylandsaves.com) MarylandSaves: Employers (marylandsaves.com) MarylandSaves: MarylandSaves and the Law (marylandsaves.org) MarylandSaves: Contributions (savers) (marylandsaves.com) Internal Revenue Service: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (irs.gov) Internal Revenue Service: COLA increases for dollar limitations on benefits and contributions (irs.gov) Internal Revenue Service: 401(k) plan overview (irs.gov) Georgetown University Center for Retirement Initiatives: States: 2026 state program status (as of November 6, 2026) (cri.georgetown.edu)
This page is general information, not legal or tax advice. Confirm current rules with the state program before acting.
