McDonalds 401(k) match, vesting and fees
What McDonalds' 401(k) plan says about matching contributions
Participating employees begin to receive matching contributions once they reach one year of eligibility service. The match is $1 for every $1 of contributions to the Plan, up to a maximum of 6% of eligible compensation. The Company matches (after one year of eligibility service and attainment of age 21) $1 for every $1 of contributions to the Plan, up to a maximum of 6% of eligible compensation (as defined under the Plan). A “true-up” calculation will be performed at the end of each calendar year and will be posted to participant accounts in January of the following year.
Quoted directly from the filing. Plan terms may have changed; check your current Summary Plan Description.
Plan features
Indented passages are quoted word for word from the audit report; plan terms may have changed since, so check your current Summary Plan Description.
| Employer match | Quoted from the filing above | Audit report, p. 43 ↗ |
| Match vesting | Vesting: All participants’ accounts under the Plan are 100% vested. | Audit report, p. 44 ↗ |
| Automatic enrollment | Newly eligible Restaurant Management Employees are automatically enrolled up to 3% of eligible compensation effective March 1, 2024 and all Restaurant Management Employees are subject to automatic annual increases of 1% until they are contributing 6% of eligible compensation. As of March 1, 2024, restaurant management employees are enrolled automatically at contribution level of 3% of eligible compensation as soon as they have completed one year of service and attained age 21 (the percentage may be changed by the restaurant management employee). | Audit report, p. 42 ↗ |
| Loans | Loans: Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested balance reduced by the participants’ highest outstanding loan balance during the preceding 12-month period. All loans are currently subject to a $75 processing fee. Loan terms range from 12 months up to five years. In 2020, the ability to take a second loan was added. The loans are secured by the balance in the participant’s account and bear interest based on the prime rate in effect on the first day of the month in which the loan is requested, plus 1%. Principal and interest are paid ratably through payroll deductions. If a participant terminates with an unpaid loan exceeding $1,000 and does not take a full distribution, the participant has 90 days to pay off the loan in full or elect to use the direct debit feature and continue to make monthly payments for the remaining loan term. | Audit report, p. 44 ↗ |
| Independent auditor | Crowe LLP (unmodified opinion) | Schedule H ↗ |
| Plan type and status | 401(k) · Active | Form 5500 ↗ |
| Late participant contributions | Reported on the filing | Schedule H ↗ |
All rows are from the plan year 2024 filing; plan features from its audit report.
How the plan compares
Plan year 2024 medians for 19 defined-contribution plans in accommodation and food services with 10,000 to 49,999 participants.
| McDonalds: employer contribution per participant | $2,377 | |
| Peer median | $1,270 |
| McDonalds: average balance | $206,282 | |
| Peer median | $40,457 |
| McDonalds: admin expenses ÷ assets | 0.05% | |
| Peer median | 0.13% |
Admin expenses are the plan's reported administrative expenses divided by its assets; they do not include fund expense ratios.
Plan history
Plan assets went from $3.8B at the end of plan year 2023 to $3.7B at the end of plan year 2024.
| Plan year | Participants | Assets | Employer contributions | Per participant | Admin expense ratio | Match formula | Filing |
|---|---|---|---|---|---|---|---|
| 2024 | 32,254 | $3.7B | $43.1M | $2,377 | 0.05% | Quoted in the audit report, p. 43 ↗ | Form 5500 ↗ |
| 2023 | 32,254 | $3.8B | $39.5M | $2,065 | 0.04% | Not published | Form 5500 ↗ |
Common questions
Does McDonalds match 401(k) contributions?
The audit report attached to the Mcdonald'S Corporation 401(k) Plan's plan year 2024 Form 5500, page 43 says: “Participating employees begin to receive matching contributions once they reach one year of eligibility service. The match is $1 for every $1 of contributions to the Plan, up to a maximum of 6% of eligible compensation. The Company matches (after one year of eligibility service and attainment of age 21) $1 for every $1 of contributions to the Plan, up to a maximum of 6% of eligible compensation (as defined under the Plan). A “true-up” calculation will be performed at the end of each calendar year and will be posted to participant accounts in January of the following year.” Plan terms may have changed; check your current Summary Plan Description.
When is the McDonalds 401(k) match vested?
The audit report attached to the plan year 2024 Form 5500, page 44 says: “Vesting: All participants’ accounts under the Plan are 100% vested.”
Who manages the McDonalds 401(k)?
The filing names Mcdonald'S Corporation 401(k) Plan Administrative Committee as plan administrator; it does not list a recordkeeper.
I left McDonalds. How do I find my old 401(k)?
Your account stays in the plan until you move it. Contact the plan administrator (Mcdonald'S Corporation 401(k) Plan Administrative Committee, (877) 623-1955). The McDonalds old 401(k) page lists the contacts from every plan filing. Find an old McDonalds 401(k)
Data from the public Form 5500 annual reports McDonalds filed with the U.S. Department of Labor (plan years 2023 and 2024) and, where noted, the attached independent auditor's report. Plan terms may have changed since the filing; check your current Summary Plan Description. PlanFacts is not affiliated with McDonalds. Not financial advice. Report a correction · Methodology