Through the National Household Employers Association (NHEA), GTM 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, 2018):
- Tax savings: Household employees have the potential for a pre-tax savings via payroll deferral of up to $12,500; those 50+ years old can invest another $3,000 as a catch-up contribution
- Flexibility: Household employees have the option to modify deferral amounts
- Employer contributions: Family/employer must make a mandatory contribution on a dollar for dollar match basis up to 3% 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
- Transferability: If the employee changes families, but the new family continues to use GTM Payroll Services, that family can adopt the NHEA plan and continue 401K contributions OR the employee can roll the 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.