DavidO Posted September 10 Share Posted September 10 Assume a non-SH 401K plan where the employer is making discretionary contributions. A non-owner HCE becomes eligible for deferral but was not given the opportunity to defer thus creating a MDO. The corrective QNEC is 10%. Question 1: In general, can a corrective QNEC be used for the 3% TH and for the 5% gateway allocations? Question 2: The non-owner HCE become eligible for deferrals (triggering the MDO), but does not satisfy eligibility for the discretionary contributions. Am I correct that because of the corrective QNEC they must receive TH 3%? Thank you for any help! Link to comment Share on other sites More sharing options...
Bri Posted September 11 Share Posted September 11 I've had an attorney bless its use for the TH minimum. Didn't need a gateway test, though. Link to comment Share on other sites More sharing options...
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