Complex formula example – 401k Match

Tip: Complex formula example - 401k Match

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.

Duration 
3:17
Author 

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