McDonald’s Supersized 401(k) Match

But will a retirement plan make top employees stay with the company?

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At a time when corporations are in the news every day for cutting their employee 401(k) matches, I was pleasantly surprised to read about a company making a significant contribution to employee retirement accounts. McDonald’s began offering employees a supersized 401(k) plan in 2004 in an effort to attract and retain talented workers.

Employees who save just 1 percent of pay get $3 from the company for every $1 stashed in their 401(k). The next 4 percent of pay contributed is matched by the company $1 for $1. There’s also a potential profit sharing match of up to 4 percent. And employees are immediately vested in their contributions and company matches. The Mc$ave money market fund for McDonald's employees is invested in the Prime Reserve Fund managed by T. Rowe Price.

“You can put away a nice nest egg for you and your family, depending on how long you stay at this company," Kenny Sanders, a human resources manager for McDonald's overseeing 76 company-owned stores, told BusinessWeek.

Please tell me about your company’s 401(k) match at or below.