Hello,
I need to audit our safe harbor match and need assistance with creating an Excel formula. Our match is 100% match on first 3% of deferred salary; then 50% match on next 2% of deferred salary. I currently have this formula =(MIN(D3,3%)*C3)+IF(D3>3%,MIN(D3-3%,2%)*0.5*C3), but it does not factor in if an EE defers 5% or more.
100% X 3% = 3%
50% X 2% = 1%
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Total Match = 4% of employees deferring 5% or more.
If employees are deferring 4%, the match would be:
100% X 3% = 3%
50% X 1% = 0.50%
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Total Match = 3.50 %
If the employees deferral is 3% or less, the employer match would be the same percent as the employee deferral, since it is matched at 100% up to 3%.
For example, ee match =1%, ER Match = 1%
Please help!
Thank you!
