Retirement Plan for Nannies

Retirement Plan for Nannies

GTM Payroll Services offers a retirement plan for nannies and other household employees. Our SIMPLE 401(k) Plan not only gives you a recruiting and retention advantage over other families without retirement options, but it also helps your employee build an excellent source of retirement income and experience the benefits of tax-deferred growth.

Features and Benefits of a Retirement Plan for Nannies

The NHEA Domestic Workers Retirement Plan includes the following features and benefits (effective January 1, 2022):

Tax Savings

Household employees have the potential for pre-tax savings via payroll deferral of up to $14,000; those 50+ years old can defer another $3,000 as a catch-up contribution.


Household employees have the option to modify deferral amounts.

Employer Contributions

Family/employer must make mandatory contributions on a dollar-for-dollar match basis up to three 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.

Employee Support

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 plan and continue 401(k) contributions OR the employee can roll their money into another qualified retirement plan or individual retirement account (IRA)

Talk to an Expert

Our experts are available to discuss your needs and help you get started with a retirement plan for your household employees.

Call Us
(800) 929-9213
Mon – Fri 8:30 am – 8 pm ET

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