per capita QNEC's

[austin3515]

Are per capita QNEC's subject to the same limitations on targeted QNEC's?

So basically, after the final 401k regs, are per capita QNEC's essentially dead, assuming you have a low paid terminated HCE?

[JanetM]

Reg I believe applies. 1.401k(a)(6)(iv)(A)

(A) General rule. --Qualified nonelective contributions cannot be taken into account for a plan year for an NHCE to the extent such contributions exceed the product of that NHCE's compensation and the greater of 5% or two times the plan's representative contribution rate. Any qualified nonelective contribution taken into account under an ACP test under §1.401(m)-2(a)(6) (including the determination of the representative contribution rate for purposes of §1.401(m)-2(a)(6)(v)(B)), is not permitted to be taken into account for purposes of this paragraph (a)(6) (including the determination of the representative contribution rate under paragraph (a)(6)(iv)(B) of this section).

So for per capita QNEC it would depend on the amount and the compensation.