Maryland businesses can use a new state program to offer savings plans to their employees
BALTIMORE -- Nearly half of all Americans work for an employer that does not offer a retirement savings plan.
Maryland is now one of the first states to do something about that.
It's called MarylandSaves. It gives small business owners an easy and free way to offer retirement plans to employees who may not have been able to afford or manage a Roth IRA savings plan.
A portion of the employee's (5%) check goes into the retirement savings plan. But a lot of people have been asking: What if that's not what I want to do with my money?
"The employees can also log onto their account at any time and say hey this is not the right time for me. I need every nickel," MarylandSaves Acting Executive Director Glenn Simmons said. "Great, you know, I want to do this but I want to do more than 5%. Let's take it up to 6%. The employee always has total control over their account."
The new program helps businesses comply with a new Maryland law requiring most employees to offer a retirement savings program.