Through the National Household Employers Association (NHEA), GTM Payroll Services offers a SIMPLE 401K Plan that not only gives you a recruiting and retention advantage over other families without retirement options, it also helps your employee build an excellent source of retirement income and experience the benefits of tax-deferred growth.
Features and Benefits
The NHEA Domestic Workers Retirement Plan includes the following features and benefits (effective January 1, 2019):
Household employees have the potential for a pre-tax savings via payroll deferral of up to $13,000; those 50+ years old can invest another $3,000 as a catch-up contribution.
Household employees have the option to modify deferral amounts.
Family/employer must make mandatory contributions on a dollar-for-dollar match basis up to 3 percent of the employee’s gross pay, which can be used to reward and retain valuable household workers.
Self-direction of investments
Household employees have the ability to self-direct their investments from a list of monitored, low-cost mutual funds.
Household employees have access to advisors who can provide them with one-on-one advice
If the household employee changes families and their new family uses GTM Payroll Services, that family can adopt the NHEA plan and continue 401(k) contributions OR the employee can roll their money into another qualified retirement plan or individual retirement account (IRA)
Household Employee Benefits & Insurance
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Our experts are available to discuss your needs and help you get started with a retirement plan for your household employees.