Select your state

Investments

Employer 401(k) plan

An employer 401(k) plan is an employer-sponsored retirement savings plan that gives employees a choice of investment options—typically mutual funds. Employees who participate in a traditional 401(k) plan have a portion of their pre-tax salary invested directly in the option or options they choose. These contributions and any earnings from the 401(k) investments are not taxed until they are withdrawn.

In Maryland, as in other states, an employer 401(k) plan is a retirement savings program that is sponsored by an employer and allows employees to save and invest for their retirement on a tax-deferred basis. Employees can choose to have a portion of their pre-tax salary invested in various investment options, which often include a selection of mutual funds. The contributions made to the 401(k) plan, as well as any earnings or gains from the investments, are not subject to federal or state income tax until the employee withdraws the money, typically after reaching retirement age. Under federal law, specifically the Employee Retirement Income Security Act (ERISA), these plans are regulated to protect the interests of participants and provide certain rights to plan information. Maryland does not have specific state statutes that alter the federal regulation of 401(k) plans, but state tax laws conform to federal treatment regarding the tax-deferred status of contributions and earnings.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Investments

Employer 401(k) plan

Individual & Family Legal Plan

Articles

Maryland State Code

Maryland State Code

Investments

Employer 401(k) plan

Articles