Qnec with less than 1000 hours

[Guest lindamichals]

If the plan doc states to allocate the Qnec in the same manner as the Non-elective(which requires 1000 hours) and the participant does not have 1000 hours, does he still receive the Qnec in order to pass ADP test?

Thanks,

Linda Michals

[Lori Friedman]

Are you asking about a safe harbor 401(k) plan, or about an "ordinary" QNEC? In general, a QNEC can be limited to individuals who work a minimum number of hours and/or are employed on the last day of the plan year. If your plan's making a safe harbor QNEC, however, it can't condition eligibility on working a minimum number of hours or being employed at year-end.

[Guest lindamichals]

Are you asking about a safe harbor 401(k) plan, or about an "ordinary" QNEC? In general, a QNEC can be limited to individuals who work a minimum number of hours and/or are employed on the last day of the plan year. If your plan's making a safe harbor QNEC, however, it can't condition eligibility on working a minimum number of hours or being employed at year-end.

No, the plan is not a safe harbor 401k plan.