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What does QNEC stand for?

QNEC stands for Qualified Nonelective Contribution (qualified retirement plans)

This definition appears somewhat frequently and is found in the following Acronym Finder categories:

  • Business, finance, etc.

See other definitions of QNEC

Other Resources:
We have 2 other meanings of QNEC in our Acronym Attic

Samples in periodicals archive:

Considering the popularity of safe-harbor 401(k) plans, in-service distributions of qualified nonelective contributions and qualified matching contributions (including safe-harbor match and safe-harbor nonelective contributions) are not permissible before the employee reaches age 591/2 unless the employee dies, becomes disabled, has a severance from employment, or has a hardship, or there is a termination of the plan (Regs.
When the chips are down, plan sponsors can pull out one or both of the Aces-in-the-Hole allowed by law: Qualified Matching Contributions (QMACs) and Qualified Nonelective Contributions (QNECs).
Rather than implement corrective distributions, employers may make qualified nonelective contributions.
401(k) plan may be able to avoid making distributions to highly compensated employees (HCEs) under the actual deferral percentage (ADP) test or under the actual contributions percentage (ACP) test by making qualified nonelective contributions (QNECs) to a select group of very low-paid employees.
No matching or QNECs: No matching contributions are allowed to a SARSEP, and excess deferrals cannot be corrected with qualified nonelective contributions (QNECs).