The Delaware Expanding Access for Retirement and Necessary Saving (EARNS) program was signed into law in August 2022 without an effective date. When it takes effect, the Delaware EARNS program allows covered employees with no access to employer-sponsored retirement plans to voluntarily contribute to a state-facilitated payroll deduction individual retirement savings account program similar to a Roth IRA.
An employer is subject to the EARNS program if it employs at least five covered employees, has been conducting business in Delaware for at least six months in the immediately preceding calendar year, and does not offer employees tax-favored retirement plans (e.g., 401(k), 403(b)). Covered employees are employees who are at least 18 years old, have been employed by a covered employer, and have earned wages or other compensation in Delaware.
Employers should monitor the development and forthcoming regulations for the details of the program, including the effective date.
Delaware HB 205»
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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