Robert J. Boumis  |  January 12, 2015

Category: Legal News

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McDonald'sDespite praise from various sectors of the financial industry, the 401k program offered to McDonald’s managers has come under scrutiny as a McDonalds 401k class action lawsuit investigation is launched.

McDonald’s offers its managers a matching program for money invested in their 401k program, matching three dollars from McDonald’s to every dollar invested by their managers for the first 1 percent of their pay. For many managers—depending on certain conditions—McDonald’s may apply additional 401k matching.

This McDonalds 401k program is designed to help managers build their nest egg for retirement by encouraging them to save while they work for the McDonald’s Corp. McDonald’s managers are automatically enrolled at 1 percent, unless they want to opt-out or invest more into the McDonald’s 401k program. Several financial sector commentators, have ranked the McDonald’s 401k program among the better retirement packages in the country. Despite this, the McDonalds 401k program has come under serious scrutiny from legal experts because of money mismanagement allegations.

401k Plans McDonald’s Class Action Lawsuit

A 401k program is a retirement planning device that exploits certain tax benefits. Qualifying retirement programs have their taxable amounts deferred, but can still be invested to generate interest. Depending on how the money is invested, even modest interest can overcome the deferred taxation pulled out of the 401k program. Additionally, the money generated by these investments bypasses certain other tax laws, potentially meaning that a program like the McDonald’s 401k program could provide serious tax benefits compared with traditional income investment options for retirement outside of a 401k program. There are several ways a 401 k can be run, and some McDonald’s employees have lodged various allegations that the McDonald’s 401k program is poorly managed, which could have serious impacts for McDonald’s managers when they retire.

In light of this, a McDonald’s class action lawsuit investigation has been launched over allegations that the McDonalds 401k program is being mismanaged. Allegedly, the managers of the McDonald’s 401k program have typically chosen to participate in high-risk investments, which could potentially produce more money for members of the McDonald’s 401k program, but could also leave members of the McDonalds 401k program with little or no money if the investments fail, jeopardizing their retirement plans. This McDonald’s class action lawsuit could seek to recoup money lost by alleged mismanagement of the McDonalds 401k program or seek to instate changes to the way that the McDonald’s 401k program is managed in the future to safeguard the retirement funds of McDonald’s managers.

Join a Free McDonalds 401k Class Action Lawsuit Investigation

A class action lawsuit investigation is currently underway to pursue the possibility of taking legal action against McDonalds for potentially violating ERISA. If you are a McDonalds employee who signed up for a McDonalds 401k account since 2007, you may have a legal claim.

Join the Investigation Now

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