GTM’s 401(k) Plan for Nannies

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In 2011, GTM Payroll Services conducted a Nanny Trends Survey regarding employment benefits for nannies, which revealed the most popular benefit nannies did not receive but wanted was a retirement savings plan.  As a result, in 2012, GTM introduced a 401(k) Retirement plan for household workers.  Now, nannies and other domestic workers have the ability to save for their future, while giving families/employers an excellent way to recruit and retain their best employees.

Key features of this plan include:

Tax-savings: Nannies have the potential for a pre-tax savings via payroll deferral of up to $11,500; those 50+ years old can invest another $2,500 as a catch-up contribution

Flexibility: Nannies have the option to modify deferral amounts

Employer contributions: Family makes a contribution on a dollar for dollar match basis up to 3% of the nanny’s gross pay, which can be used to reward and retain valuable employees

Self-direction of investments: Nannies have the ability to self-direct their investments from a list of monitored mutual funds

Employee support: Nannies have access to professional advisors who provide them with one-on-one advice

Transferability: If a participating nanny changes families, they can roll the money to another qualified retirement plan or individual retirement account (IRA)

How to Enroll:

Families/household employers interested in this plan just need to contact GTM Payroll at (888) 432-7972 or visit www.gtm.com.

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