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Question #14 test 06/05/97


Guest Jhagan

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Guest Jhagan
Posted

What is the total QNEC required for the NHCE in order for the plan to pass the ADP?

-None of the NCE are related

-The plan year is 1996 calendar year

-No other matching or nonelective contributions

-All HCE are elgiible for QNEC

-Gross compensation is used for testing

EE, Gross comp, elective deferral

HCE1, 150,000, 9,000

HCE2, 100,000, 8,500

NHCE1, 50,000, 2,500

NHCE2, 50,000, 2,500

NHCE3, 25,000, 625

Anwser is 862.50. Can't get there.

Posted

I calculated 812.50. I do not know how they arrived at that answer. I think that answer is wrong.

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