A Week in the Life of a McDonald’s Cashier

Re:A Week in the Life of a McDonald’s Cashier by sokoloff on Thursday December 05, 2019 @04:48PM (#21716965)

How does putting in $100, getting a $7 match, and immediately pulling it out and paying a $10.70 penalty on the withdrawal leave her with more disposable income? (She avoids income tax on the $100, but then pays tax on the withdrawal so if they happen in the same year, that’s also a wash.)

I literally can’t see how this tactic helps her in any way.

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Re:A Week in the Life of a McDonald’s Cashier by jumbopapa on Thursday December 05, 2019 @05:00PM (#21717087)

It's a dollar for dollar match on up to 7% of pay. Let's say she makes $100. She puts in $7 and her employer also puts in $7. That's $14, and upon early withdraw she would pay $1.40 (penalty) + income tax (likely $0). She would come out with an additional $5.60.

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Re:A Week in the Life of a McDonald’s Cashier by sokoloff on Thursday December 05, 2019 @05:33PM (#21717412)

Additional note: Only plan participants 59.5 or older are eligible to make in-service withdrawals (as are terminated employees, of course). Probably not a viable income augmentation plan for most.

https://www.sec.gov/Archives/edgar/data/63908/00011931251820...

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Re:A Week in the Life of a McDonald’s Cashier by jumbopapa on Thursday December 05, 2019 @05:38PM (#21717453)

Then I will concede that this option won't work in her case. Doesn't change that education is one of the best choices that she has.

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