Delaware EARNS: Delaware Retirement Mandate for Employers

Delaware EARNS covers Delaware employers with 5+ employees that do not offer a qualifying retirement plan. Counting rule: Employs, and during the previous calendar year employed, at least five Delaware W-2 employees (full- or part-time). In business in Delaware for at least six months of the preceding calendar year.

Up to $250 per eligible employee per year, capped at $5,000 per year. The penalty is in force; no public record of assessments yet.

• Passed: All eligible employers, October 15, 2025
• Passed: Newly eligible employers, June 30, 2026

If your group's date has passed and you have not registered, register or certify an exemption now.

19 Del. C. §§3802(3), 3804, 3805(e). Official program: Delaware EARNS official site. Verified September 17, 2026.

You must take part if your business has 5 or more employees in Delaware and you do not offer a qualified retirement plan, such as a 401(k) or SIMPLE IRA. The section above explains exactly how Delaware counts your employees.

Every announced Delaware EARNS deadline has passed. If you have not registered or certified an exemption, do it now.

You could owe up to $250 a year for each eligible employee, with a yearly ceiling of $5,000. No assessments have been made public so far.

Offer your own qualified retirement plan and certify it with Delaware EARNS. What counts in Delaware: a plan under 401(a)/401(k), 403(a)/403(b), SEP (408(k)), SIMPLE (408(p)) (program also lists 403(a) and 457(b)); employers with fewer than five employees also certify.

Delaware EARNS spares you from running a plan, but it allows no employer match and caps each saver at the IRA limit ($7,500 for 2026). A 401(k) allows up to $24,500 per employee for 2026, lets you add a match, and credits can offset much of the startup cost for eligible employers.