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chooses to deposit part of their earnings into a 401(k) account and not pay income on it until the money is later withdrawn in retirement.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.