Delaware’s state retirement savings program
Delaware law requires that employers meeting certain requirements offer either the state-facilitated retirement program or a qualified alternative to their employees. Business owners who don’t comply may face fines. Are you ready?Reach out to the ePlan Services team today to learn more about Delawares’s retirement savings requirements and set up a 401(k) plan in 24 hours.
What to know about Delaware EARNS
Delaware EARNS is Delaware’s retirement savings program. Here are the basics:
- Program Status: Open for enrollment
- Employer Participation: Mandatory
- Program Type: Roth IRA (Traditional IRA option for alternative election)
- Penalty: $250 per employee per year, up to a maximum of $5,000 annually
- Employer Requirements: Employers who have been in business at least six months and employ five or more employees and do not currently offer a qualified retirement plan
- State Website: Delaware EARNSopens in a new tab
ePlan Services vs. Delaware EARNS
See how Delaware’s retirement savings program measures up against an ePlan Services 401(k)
Potential for up to $5,000 start up credit and $500 automatic enrollment credit for 3 years, plus available employer contribution credit of up to $1,000 per employee
Roth IRAs do not qualify
Yes
Matching is not permitted
Yes
The state manages the plan solely
Yes
Restricted options
$24,500
+ $8,000 (age 50-59, 64+) or $11,250 (age 60-63) in catch-up contributions
$7,500
+ $1,100 in catch-up contributions (age 50+)
Meet your regional wholesaler
Quick and easy plan setup
Plan setup can be easily completed online so you can focus on helping more clients.
Higher contribution rates
401(k) retirement accounts have higher contribution limits than IRAs—putting more in your clients’ pockets down the road.
Potential tax breaks
SECURE Act offers tax credits to employers who start plans, add an auto-enrollment feature, or make contributions.
Have You Informed Your Clients About Delaware Earns?
Financial advisors, the Delaware Earns savings program has arrived. If your business owner clients aren’t already aware of Delaware Earns, the state’s retirement savings Roth IRA program, now is the time to inform them. Certain employers who do not currently offer a retirement plan must enroll in Delaware Earns or another qualifying plan such as an ePlan Services 401(k). This helpful guide will give you the information you’ll need to ensure your clients are fully aware of their options to comply with the law.
A Financial Advisor’s Guide to State-Administered Retirement Plans
Millions of private-sector workers across the United States do not have access to a retirement savings account and, to address this crisis, several states have implemented state-administered retirement plans. What does this mean for you? It means that, as a trusted financial advisor, your clients are going to need your help selecting and enrolling in a retirement plan that will suit the needs of their business.
