America Saves Week – April 8-12, 2024

As financial literacy and wellness continue to be paramount in today’s economic landscape, Delaware Treasurer Colleen Davis once again encourages Delawareans to participate in America Saves Week, the initiative aimed at promoting saving, budgeting, and financial stability across the nation.

The theme for America Saves Week 2024, which runs from April 8-12 is “Saving for What Matters Most.”

“Supporting America Saves Week aligns with our office’s main priorities; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence,” Treasurer Davis said. “By participating in this initiative, we can help individuals build strong financial foundations, reduce debt, and increase savings, ultimately leading to greater financial security and peace of mind.”

The Office of the State Treasurer will provide information on how people can create an effective savings plan by highlighting several key areas that contribute to financial stability. Each day of America Saves Week carries a specific theme:

• Monday, April 8 – Saving Automatically
• Tuesday, April 9 – Saving for the Unexpected
• Wednesday, April 10 – Saving for Major Milestones
• Thursday, April 11 – Paying Down Debt is Saving
• Friday, April 12 – Saving at Any Age

Delaware’s America Saves webpage (https://treasurer.delaware.gov/asw24) will be updated every day with information and tips about each daily theme.

“While America Saves Week provides a perfect time to take a close look at your finances and saving methods, we provide unique savings opportunities throughout the year,” Davis said. “Our office oversees the design, implementation, and overall administration the DE529 Education Savings Plan, DEPENDABLE, a savings plan for people with disabilities, and DEFER, the deferred compensation program for state employees. We’re also looking forward to the implementation of Delaware EARNS later this year. EARNS is a program that will bring retirement savings to those unable to get a retirement plan from their employer.”

Members of the Delaware General Assembly joined Treasurer Davis in promoting saving by proclaiming the week of April 8, 2024 “Delaware Saves Week” with the passage of Senate Concurrent Resolution 134 sponsored by Senator Nicole Poore and Representative Larry Lambert.

“Even a small cushion of savings can make a huge difference when it comes to helping our families overcome those unforeseen hurdles that life likes to throw in our way,” said Sen. Nicole Poore, the Senate prime sponsor of SCR 134. “That’s why I have worked closely with Treasurer Davis over the years to help our neighbors find ways to put some money aside for the future,” she said. “Whether we’re helping people with disabilities save for future expenses, making college a little more affordable for families or bringing retirement savings accounts to hundreds of workers, I am proud of the work we’ve accomplished to bring a little more financial security and peace of mind to our communities.”

“At a time when too many Delawareans are struggling to start their retirement accounts, save for their children’s education, or simply build up their nest eggs for emergencies, it’s so important that we spread awareness about the many great programs available to help residents save more for their future,” said Rep. Larry Lambert. “During Delaware Saves Week and every week, we must work to empower individuals with the resources and tools to secure their financial future.”

“I encourage everyone to take advantage of the resources available during America Saves Week and join the movement towards a financially secure future,” Davis said. “Together, we can build a more resilient and prosperous Delaware and America.”

Act now to save money when filing your 2022 tax return next year

Thanks to a new law enacted by the Delaware General Assembly, Delaware taxpayers have new opportunities to save money.

Delawareans who save for school with the DE529 Education Savings Plan may qualify for a new tax deduction on their state returns.

“While our office oversees the management of the State’s investment portfolios, we also administer the DE529 Education Savings Plan which allows people to invest in the future of their loved ones,” said State Treasurer Colleen Davis. “Implementing a new tax deduction for DE529 contributions strengthens our commitment to helping people achieve a quality education without facing the possibility of years of student loan payments.”

Delaware tax filers are now eligible to deduct up to $1,000 of contributions to DE529 Education Savings Plans each year on their Delaware tax return (or $2,000 for joint returns) with a few additional conditions.

The deduction will NOT be available for:

• Tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school
• Individuals with a federal adjusted gross income greater than $100,000 (or $200,000 for joint returns).

“The Department of Finance is pleased to announce that this tax benefit will be available for qualifying contributions made throughout 2022,” said Secretary of Finance Rick Geisenberger. “With the completion of a newly launched personal income tax module of the State’s Integrated Revenue Administration System (IRAS), considerable programmatic changes were made to enable administration of this new tax benefit for qualifying 2022 tax filers.” Official notice of the “go-Live” for these technology updates was published to the December 2022 Register of Regulations, thereby allowing the tax deduction for qualifying contributions to DE529 Education Savings Plans made after December 31, 2021.

The passage of House Bill 145 earlier this year also creates a tax deduction for contributions to a DEPENDABLE account for people with disabilities. The deduction applies to any amount up to $5,000 ($10,000 for couples filing a joint return).

“DEPENDABLE allows individuals with disabilities and their families save money above the $2,000 threshold that jeopardizes state and federal means-tested benefits,” said Treasurer Davis. “DEPENDABLE accounts allow people with disabilities to be able to work, able to save, and able to thrive.”

Those without a DE529 Education Savings Plan or DEPENDABLE account can take advantage of the tax deductions by opening accounts today at 529.delaware.gov or able.delaware.gov.

Secure-choice retirement program, income tax deductions for saving both included

In releasing his Fiscal Year 2023 recommended budget, Governor Carney showed his support for two important initiatives of the Office of the State Treasurer.

Ensuring a way for all Delawareans to effectively save for retirement even if they have no access to an employer sponsored program, the Governor included funding to cover a portion of the startup cost of the Delaware Expanding Access for Retirement and Necessary Savings (EARNS) Program as proposed by House Bill 205. DE EARNS is a secure-choice program that amounts to State-facilitated, universally available retirement savings plans, providing a convenient way for all workers to save for retirement, particularly middle and low-income workers who lack access to employer-sponsored plans and small businesses that are unable to provide such a benefit.

“DE EARNS addresses three major priorities of my office; bolstering retirement security and readiness, creating pathways to economic empowerment, and promoting a culture of financial excellence,” said State Treasurer Colleen Davis. “I am grateful to the Governor and his budget team for including the necessary funding in their comprehensive spending plan.”

DE EARNS would be available to Delaware workers whose employers do not already offer a workplace retirement plan, self-employed individuals, and others who want an easy way to save. It will allow more people to save for retirement, reduce the need for additional taxes to fund public assistance programs, and even incentivize people to return to the workforce knowing a retirement plan will be available.

Sponsored by Representative Larry Lambert and Senator Nicole Poore, and endorsed by the Delaware AARP, League of Women Voters of Delaware, and Delaware Community Reinvestment Action Council, and others, H.B. 205 received approval from the House Labor Committee in June 2021 and assigned to House Appropriations.

The Governor’s recommended budget also included funding to offset tax benefits to Delawareans who contribute to two state-sponsored savings plans.

House Bill 145, sponsored by Rep. Krista Griffith and Sen. Paradee, creates a personal income tax deduction of up to $5,000 per year for contributions to a DEPENDABLE account, and up to $1,000 for contributions to a DE529 account.

“People with disabilities and their families use Achieving a Better Life Experience (ABLE) accounts to save for the future without jeopardizing their state and federal benefits, so in a sense, this tax deduction can be even more worry-free money to save,” said Treasurer Davis. “The deduction for contributions to DE529 accounts shows we value education but don’t want to see our graduates burdened with student loan debt.”

House Bill 145 passed the House in June 2021, was reported out of the Senate Education Committee, and then assigned to the Senate Finance Committee.

Online tool can identify available funds to be used in state plans

Dealing with a troubled economy during the coronavirus pandemic has changed the way many people deal with their household budgets. The U.S. Bureau of Labor Statistics says Americans have been spending more money on groceries and home entertainment and less on travel and eating out. Changes in spending often lead to changes in saving, and State Treasurer Colleen Davis wants to remind Delawareans of the importance of saving money, especially when our economic future is unclear.

“While it’s important to maintain a healthy life and lifestyle, it’s essential that there’s money available for the future, especially if the nation’s health crisis continues,” said Treasurer Davis. “The Delaware Available Income Calculator is a tool helps determine how much available income you have to save or spend.”

Available on the State Treasurer’s website, the calculator takes your income and breaks it down by taxes paid and average biweekly expenses to show you how much of your paycheck can be saved or invested in desirable outcomes.

If saving for higher education is a priority, some of the amount identified by the calculator can be invested in a Delaware 529 account. Sponsored by the State, the plan provides a way for parents, grandparents and others pay for education expenses without having to pay taxes on the money as it grows.

The State also offers DEpendABLE, a low cost 529(a) savings plan for people with special needs, allowing them and their families to save money for qualified living expenses without jeopardizing their social security or Medicaid benefits.

“Knowing your options and availability of extra money is more important than ever right now,” Treasurer Davis said. “The only thing certain about the economy in the near future is that it’s uncertain.”