QNEC / Gateway / 401a

[Guest elang]

Can you use QNEC's to satisfy gateway requirements assuming the QNEC is not needed to pass a(4)?

[Mike Preston]

Do you mean ADP/ACP instead of a(4)?

[Guest elang]

My apologies, I am a relatively new administrator & I should have clarified a bit more. The plan needs the QNEC to pass the ADP test. I was wondering if the QNEC could also be applied to help satisfy the Gateway. My understanding is that once the Gateway is passed, the Non-Discrimination testing under 401(a)(4) must be passed both with & without the use of the QNEC; but am I able to use the QNEC to get to 401(a)(4) in the first place?

I appreciate your help.

[Tom Poje]

bingo. you hit the nail on the head.

a(4) testing has to be done with and without the QNEC.

at the 2006 ASPPA Conference, Q # 6

was as follows

Can a QNEC, used to satisfy ADP and/or ACP testing, also be used to satisfy

Gateway testing?

A. No. The QNEC can not be used for double duty (Unless the plan was a safe harbor

401(k) in which case this is permitted)