Can QNEC be used to pass ACP

[Lori Foresz]

Help. Seems I should know this (or be able to find the answer) but can't.

Plan is failing both ADP and ACP tests. Can a QNEC to be made to pass the ADP test and then another QNEC made to pass the ACP test. The same QNEC would not be used twice. It seems so but just want to be absolutely sure.

Thanks for the help!

[Lori Foresz]

To clarify, the QNEC would be allocated in the ACP test using the bottom-up prorta method(document allows) to the lowest paid participant regardless of whether that participant contributed and/or received a regular match.

Plan Administrator is telling us only a QMAC can be made to satisfy the ACP test (not a QNEC) and the bottom up QMAC is allocated to the lowest paid person who received a match. Of course, this person is much higher paid than the lowest paid QNEC person, so the QMAC is much more expensive than a QNEC.

Help is that correct? All I seem to find is that QNECs can be used in the ACP test.

[Tom Poje]

if true that only QMACs may be used in the ACP test, then I need to get a permament magic marker and blot out 1.401(m)-1(b)(5) which lets me use QNECs in the ACP test.

(Maybe the person is thinking of Relius software which calls the QNEC used in the ACP test a QMAC - no one has been able to get them to change the term either)

[Blinky the 3-eyed Fish]

While Tom is right, this too could be a document issue. The document must allow, or specifically not preclude, the use of the QNEC for the ACP test. While this should be a no-brainer for a document to have this flexibility, I have seen documents that are restrictive.