QNEC to fix failed ADP

[Guest EPS2]

Corbel non-standardized prototype plan

Adoption Agreement:

REQUIREMENTS TO SHARE IN ALLOCTIONS OF EMPLOYER DISCRETIONARY PROFIT SHARING CONTRIBUITON, QUALIFIED NON-ELECTIVE CONTRIBUTIONS (other than Qualified Non-Elective Contributions under Plan Sections 12.5© and 12.7(g) AND FORFEITURES

A Participant must complete a Year of Service if employed on the last day of the plan year

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So, I go to Plan Section 12.5© which is the section that talks about QNEC to pass ADP, which is what we're doing. It does talk about terminated participants and how they DO NOT get an allocation

BUT

What about those participants that ARE employed on the last day, but do not have the 1000 hour requirement.

Do they get a QNEC allocation?

Help...

[rcline46]

Under 12.5©(2) I don't see any hours requirement, so there is no hours requirement. Don't forget the Final 401(k) Amendment for 2006 which modifies these rules!

[Guest EPS2]

Under 12.5©(2) I don't see any hours requirement, so there is no hours requirement. Don't forget the Final 401(k) Amendment for 2006 which modifies these rules!

Yeah...that's what I thought. No hours requirement for any of the options. I did check the final 401(k) amendment, and there is nothing that changes who gets the allocation. It just talks about targeted contribution limit, limitation of, the ADR of HCE if multiple plans, and use of different testing methods for ADP and ACP tests.

Thank you for responding. I appreciate your response