As a business owner in Delaware, you’re likely aware of the increasing importance of offering retirement savings options to your employees. However, establishing and managing a traditional retirement plan can be complex and costly, especially for small businesses. The state of Delaware has introduced a new program designed to address this challenge: Delaware EARNS (Expanding Access for Retirement and Necessary Savings).
Delaware EARNS is a state-sponsored retirement savings program that makes it easier for employers to help their employees save for the future. It’s a Roth IRA-based program, meaning contributions are made with after-tax dollars, and qualified withdrawals in retirement are tax-free.
Here’s how it works. Employees are automatically enrolled in the program, with contributions deducted directly from their paychecks. Employees can choose their contribution amount and opt-out if they prefer. The account stays with the employee even if they change jobs. There are no fees for employers, and minimal fees for employees.
Any Delaware business with five or more employees that does not already offer a qualified retirement plan is required to participate. Any employee who is 18 or older and works for a participating employer is eligible to enroll.
Employers are required to register or certify their exemption from the EARNS requirement by October 15, 2024.
If you’re a Delaware employer, we recommend taking the time to learn more about Delaware EARNS. We’re here to help you understand the program’s requirements and determine if it’s the right fit for your business. Contact Danielle VanderWerf, Deb Horn, or Ed Fronczkowski today to discuss your options and ensure you’re in compliance with the new regulations.
