In this video, we’ll look at how to build a formula that calculates a 401k match using several nested IF statements.
In the US, many companies match an employees retirement deferral up to a certain percent. In this example, the match has two tiers.
In tier 1 the company matches 100% up to 4% of the an employee’s compensation.
In tier 2, the company matches 50% on deferrals between 4% and 6%.
So, if an employee contributes 10%, the company matches 100% up to 4%, and 50% from 4 to 6%. After that, there’s no match.