Should QNECs be included in total ER contrib for Max Deduct.?

[Guest Puff]

Hi, All:

I need a sanity check, please. I have a 401(k) which failed their 2013 ADP test. They've chosen to make a QNEC to correct the test. They plan to make the QNEC deposit when they make a PS deposit (prior to their business filing deadline). My questions:

1. Should the QNEC be included as an employer contribution in the Maximum Employer Contribution Deductibility test?

2. Where can I find this in the regs?

Many thanks!

PuffMama

[Lou S.]

Yes. It is an employer contribution.