401k Matching Formula

[WatsonL]

I need a formula for 401k matching with the information below:

Example:

$50,000 and the employee contributed the 2% of their base salary

$0.50 on each dollar of the employee’s deferred contribution based on a maximum deferral rate of 1% of employee compensation provided the employee contributes no less than 2% of their base salary

[jIM_Ohio]

2% contribution is $1000
the 1% match is $500

Even if employee puts in $3000 (6%)
the max match (I believe) is still $500 (1%).

[jpg7n16]

For x being a real number between 0 and 100:

Employee Contribution

=x% * Salary

Employer Match

=min(0.5*x%,1%)*Salary



If you type those into Excel, they will calculate the amount of contributions and employer match. Use a reference cell for X (x= deferral rate) and Salary.

Jim is right - the max the employer will contribute is 1% of base salary ($500 in the example you provided)

[WatsonL]

Thank you so much for your assistant.

[WatsonL]

Thank you

Thank you for your response.