Top Heavy contribution- QNEC?

[Guest rachd]

When the company deposited their required Top Heavy contribution- the investment company labelled it as a QNEC? Should it be done this way? Or is it ok to leave it this way?

I'm wondering if I should move the money from the QNEC account into the discretionary account. From my experience, only ADP/ACP corrections were called QNEC's.

Any insight for me?

Thanks,

Rachel

[Kirk Maldonado]

Rachel:

If it is a QNEC, then it would have to be fully vested and subject to the limitations on distributions that apply to Section 401(k) contributions. That would seem to make sense only if the amounts are need to satisfy the ADP/ACP test.