QNEC, Already contributed $20,500 limit to 401K; Turned 50 years old in March 2022, will QNEC count towards Catch-Up Limit?

I contributed the maximum 401K limit amount of $20,500 from Jan 2022 to June 2022. Today, Aug 23, my 401K shows a QNEC contribution of $100. 

1) Will I have exceeded the 401K limit by $100.00 now due to QNEC contribution? Does QNEC count towards the $20,500 basic 401K limit?

2) I turned 50 years old this year in March. Will the QNEC contribution count towards catch-up contribution even though I have not asked my company to deduct my paycheck for catch-up contribution? Should I start deducting for catch-up contribution (with limit of $6400+$100QNEC = $6500)?

3) Does the QNEC contribution show up in my W-2 as "Elective Deferrals" with a total of ($20,500+$100 = $20,600 + $6,400 =) $27,000 as one entry on W-2 or separate entries for Basic 401K limit of $20,500, separate entry for QNEC, and another separate entry for catch-up contribution?

4) Do I need to fill out any special IRS forms when doing taxes for QNEC especially if it counts towards the basic 401k limit of $20,500 which I would have now exceeded by $100? 

Thank You!

Ms Rita,

The QNEC is an employer contribution and doesn't count against your $20,500 limit. You're eligible to defer the additional catch up amount in 2022 as long as you turn 50 anytime during 2022. So, if you want to do the additional deduction, contact HR/payroll. There are no IRS forms that you need to complete related to the QNEC.

FWIW, QNEC stands for Qualified NonElective Contribution. It's an employer contribution typically made to allow the plan to pass a discrimination test rather than give refunds back to people. Since it's an employer contribution, it won't show up on your w-2 at all.

Mr. Bill,

Thank You for taking the time to answer my question. I'm glad I don't need to do anything additional for my taxes.

Have a great day,

Rita.