Guest caddieadmin Posted March 19, 2007 Posted March 19, 2007 I know QNEC's can be used to satisfy various deficiencies when it comes to nondiscrimination testing, but if all of the yearly nondiscrimination tests are passed, does the employer have the option to use QNEC's as an added bonus feature for employees (assuming the "bonus" allocation to employees' accounts is nondiscriminatory in nature)? Can the Employer also choose to add a little extra to employee's accounts in one year (via QNEC's) and then decide NOT to the next year, due to low profit margins? Or are you required to continue giving out QNEC's at the pre-determined percentages once you start the plan. Thanks for your time guys.
Mike Preston Posted March 19, 2007 Posted March 19, 2007 Under the circumstances you posit, total flexibility is available.
BG5150 Posted March 23, 2007 Posted March 23, 2007 Why not do it as a profit sharing? This way it won't be immediately 100% vested (maybe). QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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