Do You Have a Retirement Plan?
GTM Payroll Services, a well known and established nanny and household employee payroll company in America, announced yesterday that they have launched the GTM Domestic Workers 401(k) Retirement Plan.
GTM Payroll Services explains that this type of retirement plan provides GTM household clients an excellent and cost-effective tool to retain and recruit quality employees.
A 401(k) is a type of retirement savings account in the United States. The advantage to the employee of having a 401(k) is that their employers can help their employees save for retirement while reducing taxable income. The worker chooses to deposit part of their earnings into a 401(k) account and not pay income on it until the money is later withdrawn in retirement. The earlier a nanny starts a retirement savings the sooner she will start earning interest for their retirement.
We highly recommend nannies encourage their employers to contact GTM about the GTM Domestic Workers 401(k) Retirement Plan.
But, if employers don't offer their in-home childcare providers with a 401(k) retirement plan, nannies can look at other options to start their own retirement savings. An Individual Retirement Account (IRA) is a personal retirement savings plan available to anyone who pays taxes. Financial experts recommend opening an IRA as young as possible to allow time for your retirement investments to grow. A traditional IRA allows tax-deductible contributions of up to $5,000 per year, or more if you are over age 50. Whatever you contribute towards your IRA comes off your yearly income, and is non-taxable income.
If you don't know the terms Roth-IRA, CD, ROI, 529B EFT, mutual fund, and spiders than you are not ready to invest your money. Do your homework. This information is readily available. There are many excellent online resources available to define these and other terms and to focus the user on appropriate investments. Our blog cannot recommend specific investments or appraise your needs or tolerance to risk.
Nannies and household employers who are interested in learning more about the new GTM Domestic Workers 401(k) Retirement Plan should contact GTM Payroll Services Inc. at (888) 432-7972 or visit http://www.gtm.com.
5 comments:
I don't think most nannies have IRAs or retirement funds unless their husband has one. We don't make enough money, most are in debt, living paycheck to paycheck essentially. Yes, I would love my boss to give me a retirement plan and health insurance. But most nannies haven't a clue what
401(k) means.
I'm having enough trouble getting parents locally to pay a livable wage, plus taxes and time and a half. Just hours away in other Florida cities and GA, Nannies are making almost double what Nannies in Orlando are making. It's time to create some better Nanny standards in terms of pay and benefits and have the local agencies clearly state these to the families. and support the Nanny when she asks for these things instead of just expecting her to take any job.
I have nothing now I had to delete everything just to live I so need a job I also have a sick mom with Alsheimers I will look into this GTM plan once I get a job though
This may be true for some nannies, but I can tell you that I personally have had a 401k as part of my compensation package in every nanny job I've had. In addition, I also contribute to my IRA every year. If you are not making enough money to prepare for eventual retirement, I would encourage you to get a degree, give 5 star care, and get a new job. If you are an excellent nanny you can make an excellent salary.
You can make a tax deductible contribution of $5000 to an IRA, not $4000.
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