{"id":2910,"date":"2013-10-11T16:29:56","date_gmt":"2013-10-11T20:29:56","guid":{"rendered":"http:\/\/108.166.11.61\/household\/?page_id=2910"},"modified":"2026-02-23T13:03:00","modified_gmt":"2026-02-23T18:03:00","slug":"retirement-plan","status":"publish","type":"page","link":"https:\/\/gtm.com\/household\/retirement-plan\/","title":{"rendered":"Retirement Plan for Nannies"},"content":{"rendered":"

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Exclusive to Household Employers<\/h4>\n

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Benefit at a Glance<\/strong><\/p>\n

Empower your household workers to save for the future with tax-advantaged retirement benefits that help with employee loyalty and financial security.<\/p>\n

[\/et_pb_testimonial][et_pb_text admin_label=”page Text” _builder_version=”4.27.5″ _module_preset=”_initial” header_2_text_color=”#212492″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||0px|||” hover_enabled=”0″ z_index_tablet=”500″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

GTM Payroll Services offers a retirement plan for nannies and other household employees. This is a plan exclusive to household employers that you will not find anywhere else.<\/p>\n

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.<\/p>\n

Learn more and sign up online through the National Household Employers Association<\/a>.<\/p>\n

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Features and Benefits of a Retirement Plan for Nannies<\/h2>\n

Features and benefits effective January 1, 2026:<\/p>\n

Designed for Household Employers<\/h3>\n

A SIMPLE 401(k) plan is perfect for families with household help. Domestic workers \u2013 like nannies, housekeepers, senior caregivers, and others \u2013 provide personal services to the family and can not be added to a retirement plan offered to business employees through their company or sole proprietorship. Please note that non-resident aliens are not able to participate in the plan.<\/span><\/p>\n

Tax Savings<\/h3>\n

Household employees can save pre-tax via payroll deferrals of up to $24,500; those 50+ can defer an additional $4,000 as a catch-up contribution.<\/p>\n

Roth Deferrals<\/h3>\n

Roth 401(k) deferrals are allowed. Employees will pay income taxes on the deferred contribution. In most cases, however, the earnings are not subject to income taxes upon distribution.<\/p>\n

Flexibility<\/h3>\n

Household employees can modify deferral amounts.<\/p>\n

Employer Contributions<\/h3>\n

The employer must make mandatory contributions, on a dollar-for-dollar basis, up to 3% of the employee\u2019s gross pay, which can be used to reward and retain valuable household workers.<\/p>\n

Vesting<\/h3>\n

Money contributed to an account by an employer and their worker is always 100 percent vested. Vesting refers to an employee\u2019s \u201cownership\u201d of their plan benefits.<\/p>\n

Self-direction of Investments<\/h3>\n

Household employees can self-direct their investments from a list of monitored, low-cost mutual funds. There are no restrictions on making changes, and no commissions are assessed. Advisors are available to help counsel employees and understand investment options in the plan that may be suitable for them.<\/p>\n

Online Enrollment<\/h3>\n

Once a household employer adopts a plan, their worker can enroll online, choosing the amount they wish to defer and how they would like to invest their contributions.<\/p>\n

Employee Support<\/h3>\n

Household employees have access to fiduciary financial advisors who can provide them with professional fund management and one-on-one advice. A fiduciary is an individual who will act in the employee’s best interest by buying and selling investments that are the best fit for the employee and avoiding conflicts of interest.<\/p>\n

Transferability<\/h3>\n

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). Employees will always be 100 percent vested in their rollover account. Assistance is available for any employee who wishes to roll over their account.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/gtm.com\/household\/wp-content\/uploads\/2025\/10\/Employee-benefits-small.png” alt=”employee benefits” title_text=”Employee-benefits-small” disabled_on=”on|off|off” admin_label=”Illustration” _builder_version=”4.27.4″ _module_preset=”_initial” global_module=”43376″ global_colors_info=”{}”][\/et_pb_image][et_pb_heading title=”More to Explore” admin_label=”More to Explore” _builder_version=”4.27.4″ _module_preset=”default” title_level=”h3″ border_width_bottom=”2px” border_color_bottom=”#0C71C3″ global_module=”43375″ global_colors_info=”{}”][\/et_pb_heading][et_pb_text disabled_on=”off|off|off” admin_label=”Employee Benefits links” _builder_version=”4.27.4″ _module_preset=”_initial” header_2_text_color=”#666666″ min_height=”59.2px” custom_margin=”||11px|||” custom_padding=”||17px|||” global_module=”43377″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n

Employee Benefits<\/strong><\/h4>\n