Oxstones Investment Club™By Joe Mont ,09/30/10 – 08:00 AM EDT
BOSTON (TheStreet) — You may not get rich working at McDonald’s(MCD_), but the hamburger chain may help you retire comfortably.
The fast-food giant won the Profit Sharing/401k Council of America’s first Plan Sponsor of the Year Award. PSCA, as the group is called, initiated the prize to “recognize plan sponsors who demonstrate a special effort to deliver innovative and extraordinary commitment to employer sponsored defined contribution plans.”
“McDonald’s has been a proven thought leader in employer-sponsored defined contribution plan innovation over the past few years,” PSCA President David Wray said in an announcement.
McDonald’s lets employees save from 1% to 50% of their pay on a tax-deferred basis in their 401(k) and matches eligible employees’ contributions with $3 for each $1 of the first 1% of pay they contribute, and $1 for each $1 on the next 4% they contribute. Eligible employees may also receive a discretionary profit-sharing match of up to 4% based on the first 1% of pay they contribute.
The company also offers Mc$ave, a money market fund for McDonald’s employees managed by T. Rowe Price(TROW_). MCDirect Shares is a direct stock-purchase plan that lets employees further build ownership and reinvest dividends in the company.
–Written by Joe Mont in Boston.
Source: thestreet.com
Tags: 401K, award, Mc$ave, McDonald's(MCD), retirement plan