Employer requirements
Register with Delaware EARNS and facilitate payroll deductions, or certify an exemption based on a qualified plan.
Active mandate
Delaware Retirement Plan Mandate: Requirements for Employers
Delaware EARNS
Delaware EARNS covers employers with 5+ employees that do not offer a qualified plan. The program launched July 1, 2024; registration deadlines have passed and penalty enforcement begins in 2026 at $250 per eligible employee per year, capped at $5,000.
The Program
How the Delaware EARNS program works
Delaware EARNS launched on July 1, 2024 as the state's auto-IRA program and applies to Delaware employers with five or more employees that do not offer a qualified retirement plan — a 401(k), 403(b), SEP, or SIMPLE. Delaware is a member of the Partnership for a Dignified Retirement, the multi-state group led by Colorado.
Registration deadlines have passed. The material change for Delaware employers is timing: penalty enforcement begins in 2026. Non-compliance carries $250 per eligible employee per year, capped at $5,000 annually. An employer that has been covered but unregistered now moves from a period of no enforcement into one where the exposure is real.
Employers with fewer than five employees are not covered, and employers sponsoring a qualified plan are exempt. The state program is a Roth IRA with auto-enrollment at a 5% default; employers facilitate deductions but cannot contribute, so a sponsored plan remains the route to matching and higher limits.
At A Glance
The Delaware mandate at a glance
Registration deadlines
Registration deadlines have passed; penalty enforcement begins in 2026.
Covered employers
Employers with 5+ employees that do not offer a qualified plan (401(k), 403(b), SEP, SIMPLE).
Penalties / enforcement
$250 per eligible employee per year, capped at $5,000 annually (enforcement from 2026).
The Requirements
Who must comply in Delaware — and what is required
Employee eligibility
Eligible employees are enrolled automatically unless they opt out; administered through the Delaware EARNS program.
Exemptions
Employers offering a qualified plan; employers with fewer than 5 employees.
Penalties and enforcement
$250 per eligible employee per year, capped at $5,000 annually (enforcement from 2026).
Your Options
Qualifying retirement plan alternatives in Delaware
Employers sponsoring a qualified retirement plan satisfy the EARNS requirement.
Start a new 401(k)
Design a plan around your workforce — matching, Roth options, vesting, and federal startup tax credits.
Start a new planUpgrade an existing plan
Confirm your current plan qualifies, then tune its design so the mandate works in your favor.
Upgrade my company’s planFull plan administration
LRS handles compliance testing, filings, and day-to-day administration so the plan stays qualified.
Plan administration servicesRead more about state-approved qualifying retirement plans.
Common Questions
Delaware mandate FAQs
Is Delaware EARNS mandatory?
Yes, for covered employers. Delaware employers with five or more employees that do not offer a qualified retirement plan (401(k), 403(b), SEP, or SIMPLE) are covered. The program launched July 1, 2024.
When does Delaware start enforcing penalties?
Penalty enforcement begins in 2026. Non-compliance carries $250 per eligible employee per year, capped at $5,000 annually.
What is the Delaware EARNS deadline?
Registration deadlines have passed, and penalty enforcement begins in 2026. A covered employer that has not registered or certified an exemption still needs to do so; non-compliance carries $250 per eligible employee per year, capped at $5,000 annually.
Do employers with fewer than five employees have to participate?
No. Employers with fewer than five employees are not covered by Delaware EARNS, and employers sponsoring a qualified plan are exempt.
Can we contribute to our employees' EARNS accounts?
No. Delaware EARNS is a Roth IRA with auto-enrollment at a 5% default. Employers facilitate payroll deductions but do not contribute u2014 an employer-sponsored plan is the route to matching.
Does a SIMPLE IRA satisfy the Delaware mandate?
Yes. A qualified plan u2014 including a 401(k), 403(b), SEP, or SIMPLE u2014 exempts an employer from Delaware EARNS.
Talk It Through
Not sure how the Delaware mandate applies to you?
Leading Retirement Solutions designs and administers plans that satisfy state mandates. Talk through your requirements with a consultant before your deadline.
This page is provided for general information only and is not legal or tax advice. Program details change; confirm requirements with the official state program or your advisors.