SEP-IRA for our nanny?

[MrsDinero]

This morning our nanny asked me about retirement options for her.  Is it possible to set up a SEP-IRA for her?  Does anyone have experience with this?  We do everything legally so we have EIN.   Are there any pros or cons?  Would a Roth IRA be better for her?

She is a great person and works well with our children so I want to do right by her.

[dandarc]

http://www.homeworksolutions.com/knowledge-center/how-can-i-help-my-nanny-build-a-retirement-savings-account/

I'd start with trying to figure out what exactly your nanny is looking for.  A raise in the form of retirement contributions?  Does she want to be able to defer some of her paycheck into the plan as well?  How much money are we talking about?  That would drive the decision as to what type of plan you want to set up.

[MrsDinero]

http://www.homeworksolutions.com/knowledge-center/how-can-i-help-my-nanny-build-a-retirement-savings-account/

I'd start with trying to figure out what exactly your nanny is looking for.  A raise in the form of retirement contributions?  Does she want to be able to defer some of her paycheck into the plan as well?  How much money are we talking about?  That would drive the decision as to what type of plan you want to set up.

Thanks for the link! 

I have no idea the answers but those are great questions we will ask.

[studentoflife]

I just set one up at Vanguard for my buddies. Very simple and manageable in terms of tax reporting, which was a bonus as I do my own taxes.

That's an excellent benefit to offer your nanny. It should be easy for her to add to whatever you contribute if she is so inclined. I suppose you could also consider matching.