A simpler, more powerful retirement plan for
Delaware employers
Delaware employers can stay compliant and ahead of the curve with a retirement plan that works for everyone. WealthRabbit offers a flexible, hassle-free alternative to Delaware EARNS, giving your team a smarter way to save and your business greater control.
What is Delaware EARNS?
Delaware EARNS is the state-mandated retirement program for private-sector employers with five or more employees who have been in business at least six months and do not offer a qualified retirement plan. Eligible employees are 18 or older and must have earned income in Delaware for at least 120 days, while self-employed individuals and others can also participate via a Roth IRA. Contributions are made through payroll deductions with a default rate of 5%, and employers have minimal control over contributions or investments. WealthRabbit offers greater control, higher contribution limits, and easy payroll integration while staying compliant.
Registration deadlines
The registration deadline depends on the size of your business:
- Employers with 5+ employees: October 15, 2024
Non-compliance penalties
Failure to comply with the state mandate may result in financial penalties:
- $250 per eligible employee per year not to exceed $5,000 annually
What you’re missing with Delaware EARNS
Delaware EARNS is designed to check a compliance box - but for businesses and employers, it often falls short:
- Limited investment optionsEmployees can't build customized retirement portfolios.
- No employer benefitsBusinesses spend time managing compliance, but don't receive tax incentives.
- Lower contribution limitsEmployees can save only $7,000 ($8,000 if 50+), which is much lower than SIMPLE IRA limits.
- Minimal growth potentialLimited funds can mean lower returns for employees over time.
- Harsh penaltiesNon-compliant businesses face fines of up to $200/employee per year, creating significant financial risk.
Ready for a retirement solution that works better for your business?
SIMPLE IRA: The smart alternative to Delaware EARNS
A SIMPLE IRA plan offers significant advantages over the state-mandated option, providing tax benefits for employers and greater growth potential for employees. It's a powerful tool for attracting and retaining talent.
- Tax credits Qualify for up to $5,500 in tax credits for starting a new plan.
- Employer tax deductions Contributions you make are tax-deductible as a business expense.
- Higher contribution limits Employees can contribute up to $16,500 (2025) or $20,000 if age 50+ in a SIMPLE IRA far more than Delaware EARNS Roth IRA limit of $7,000.
- Investment flexibilityEmployees get access to a wide range of investment options, not just a few target-date funds.
- Attract & retain talentOffering a superior retirement benefit makes your company more competitive.
See How Much You Can Save with a SIMPLE IRA
Small businesses can take advantage of tax credits to help cover setup and administrative costs. By launching a new plan with auto-enrollment, you could qualify for up to $5,500 in tax credits!
How tax credits work
Tax credits are designed to offset the cost of setting up and administering, as well as contributing to the employees retirement savings.
Employers can claim up to $5,000 per year for three years to offset plan setup and administrative costs. They may qualify for additional tax credits.
- Auto-enrollment bonusIf you make the plan automatic (employees are enrolled unless they opt out), you get an extra $500 credit for 3 years.
- Employer contributionsYou may also get credits for money you put into employees' accounts (up to $1,000 per employee in the early years).
Together, these credits can add up to thousands in savings for your business. Curious how much you could claim?
Try our calculator and see exactly how much you could save.
Estimate your tax credit
Disclosure*
The SIMPLE IRA tax credit calculator is intended to estimate the average tax credit for your business. Please note, it does not constitute tax or legal advice.
Elevate your retirement savings with WealthRabbit
Instead of enrolling in Delaware EARNS, Delaware businesses can choose a qualified alternative like a WealthRabbit SIMPLE IRA — a smarter way to stay compliant.
- Self-onboardingEmployers and employees sign up on their own—retirement plans are up and running in just a few clicks.
- Seamless payroll integrationWealthRabbit seamlessly connects with your payroll system to ensure accurate and timely contributions for every employee.
- Streamlined plan rolloversEasily roll funds from your existing retirement plan into WealthRabbit— no hassle, no delays.
- Automated contributionsEnjoy a hands-off approach to retirement savings. Set up automatic deposits so your team never misses a contribution.
- Employee & employer portalsManage contributions and investments anytime, anywhere — with real-time access to performance and account activity.
Delaware EARNS vs. WealthRabbit
A quick look at how WealthRabbit’s SIMPLE IRA compares to Delaware’s state program.
| Feature | Delaware EARNS | WealthRabbit SIMPLE IRA |
|---|---|---|
| Administrative efforts | State-mandated with limited customization; minimal employer involvement | Streamlined process with automated setup and payroll integration |
| Retirement options | Roth IRA only; default 5% contribution with auto-escalation to 10% and no employer match | More diverse investment options, customizable based on business needs |
| Eligibility criteria | Employees must work 120 days to qualify for contributions | Participation is open to employers with ≤100 employees earning ≥$5,000. A required contribution is either a 3% dollar-for-dollar match or a 2% nonelective contribution |
| Flexibility | State-regulated with fixed contribution rates and minimal flexibility | Highly customizable plan with the ability to modify contribution rated and match options |
| Monthly fees | No employer fees; employee accounts are subject to state administrative fees | User-friendly portals+mobile access + stronger growth Low-cost setup: $29/month + $4 per employee, no state fees |
| Employee experience | Basic account with limited tools for employees | Comprehensive dashboard, financial literacy resources, and rollover support |
| Employee Contribution limits (2025) | $7,000 ($8,000 if 50+) | $16,500 ($20,000 if 50+) + employer contribution |
| Employer contributions | Not allowed | Matching or nonelective contributions |
Frequently asked questions
Delaware EARNS (Expanding Access for Retirement and Necessary Savings) is the state-mandated retirement savings program. Employers with five or more employees are required to register or certify an exemption by October 15, 2024.
An employer is required to either register for the program or certify an exemption if they meet all of the following criteria:
- Have five or more employees: This includes both full-time and part-time W-2 employees.
- Have been in business for at least six months: The business must have been operational since at least January 1 of the current year.
- Do not already offer a qualified retirement plan.
Eligible employees are 18 or older and have received wages from a covered employer in Delaware for at least 120 days. If your business already provides a qualified plan, you can simply certify an exemption instead of enrolling in the program.
Delaware EARNS launched on July 1, 2024, and employers were required to register or certify their exemption by October 15, 2024. This deadline applies to all employers who met the eligibility criteria.
If you have questions about your specific deadline, contact WealthRabbit support for assistance.
Delaware businesses that fail to comply with the state's mandate can face penalties of up to $250 per eligible employee per year, with a maximum annual penalty of $5,000.Choosing a WealthRabbit SIMPLE IRA ensures your organization remains compliant while offering employees a more modern and flexible retirement benefit.
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