Maryland has one of the broadest state retirement mandates in the country. MarylandSaves applies to every Maryland employer with at least one W-2 employee — and there is no monetary penalty — instead, compliant employers get Maryland’s $300 annual report filing fee waived.
Who Must Comply with MarylandSaves?
Any Maryland employer with:
- 1 or more W-2 employees (lowest threshold in the US alongside California and Oregon)
- Registered in Maryland for at least 2 years
- No existing qualifying retirement plan
This catches a huge number of small businesses — solo employers with one admin, small retail shops, home service companies, small medical practices.
No Fine — But Maryland’s $300 Filing Fee Waiver Is Real
For a Baltimore-area business, non-compliance doesn’t trigger a fine — but compliant employers get the $300 annual report filing fee waived, and non-compliant employers keep paying it every year. That’s real money — and Maryland actively contacts covered employers who haven’t registered.
MarylandSaves vs. Private Plan
MarylandSaves route: Free, easy setup, no employer contributions. Keeps you compliant and secures the $300 annual filing fee waiver. But leaves significant tax savings on the table.
Private plan route: SECURE 2.0 credits can offset much — sometimes all — of the cost for eligible businesses with 50 or fewer employees (partial credit for 51–100). Tax deductions available. Better employee benefit. For a 15-person Baltimore business, up to $20,000 in total credits over 3 years.
Special Consideration: Maryland’s High State Tax Rates
Maryland has some of the highest state income tax rates in the US (up to 5.75% state + local). Every dollar sheltered in a 401(k) saves you not just federal taxes but Maryland state taxes. This makes the private 401(k) route even more financially powerful for Maryland business owners than in lower-tax states.
Serving Baltimore, Columbia, Silver Spring, Rockville, and All of Maryland
We specialize in helping Maryland small business owners navigate MarylandSaves and find the most tax-efficient compliance path. Get your free Maryland compliance audit →
This content is for educational purposes only and does not constitute financial, tax, legal, or investment advice. State requirements and penalties are subject to change. Consult a qualified professional before making compliance decisions.
