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UPDATED SEPTEMBER 2026 · STATUTE-VERIFIED

Delaware Retirement Mandate: Delaware EARNS

Delaware EARNS has been live since July 2024. It applies to Delaware employers with 5+ employees that do not offer a qualifying retirement plan. Penalty: Up to $250 / employee (cap $5,000 / yr). Already passed: All eligible employers (2025-10-15); Newly eligible employers (2026-06-30) — unregistered employers should register or certify an exemption now..

Delaware EARNSACTIVE
State program
5+ employees
Employee threshold
Up to $250 / employee (cap $5,000 / yr)
Non-compliance penalty
// 60-second check

What does Delaware actually require?

Set your headcount for your real exposure — data verified against the statute.

Informational only, not legal or tax advice.

Annual exposure · Delaware
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Delaware EARNS at a glance.

Who is covered

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.

Penalty and enforcement

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.

Deadlines

Already passed: All eligible employers (2025-10-15); Newly eligible employers (2026-06-30) — unregistered employers should register or certify an exemption now.

Source

19 Del. C. §§3802(3), 3804, 3805(e) · Official program: earnsdelaware.com · Verified 2026-09-17.

// state plan vs your own

You can comply two ways. Only one builds anything.

The state auto-IRA

Compliance, nothing else
  • No employer match allowed
  • Low Roth-IRA contribution limits
  • One-size-fits-all investments
  • No tax credits for your business
RECOMMENDED

Your own 401(k)

Compliant — and working for you
  • Match if and when you want
  • Far higher contribution limits
  • SECURE 2.0 credits offset setup
  • A real recruiting & retention perk
// frequently asked

Asked by employers here.

What is Delaware EARNS?

Delaware EARNS is Delaware's state-facilitated retirement savings program. It has been live since July 2024. Program: https://earnsdelaware.com.

Who must comply with Delaware EARNS?

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.

What is the Delaware EARNS penalty?

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.

When are the Delaware EARNS deadlines?

Already passed: All eligible employers (2025-10-15); Newly eligible employers (2026-06-30) — unregistered employers should register or certify an exemption now.

How do Delaware employers become exempt?

Exempt with 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. A private 401(k) or SIMPLE IRA satisfies the mandate and may qualify for SECURE 2.0 startup credits.

Find out where you stand — before the state does.

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