Catch22PGM Posted January 31, 2024 Posted January 31, 2024 Hopefully this is a quick question for the experts out here. The disproportionate QNEC rules under 1.401(k)-2(a)(6)(iv)(D) limit the amount of prevailing wage contributions that can be included in ADP testing to 10%. We have a NHCE who received 14% in prevailing contributions in 2023. Is the entire 14% excluded from ADP testing or can we use 10% and back-out the other 4%? Our testing software is backing out the entire 14%. This is the first time I've had someone over 10% and just want to be sure the software is treating it properly - or maybe I don't have it coded properly in the system.
Bri Posted February 1, 2024 Posted February 1, 2024 I would think 10 should be okay in your test, but how to code that is definitely a different issue.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now