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.
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
We have 2 other meanings of QNEC in our Acronym Attic
- Qatar National Cancer Society
- Quantum Noiseless Coding Theorem
- Qatar National Datum
- Quantum Network Design (technique for mapping and quantifying the flow of information)
- Quantum Non-Demolition (quantum system measurement)
- Quick and Dirty
- Quincy Notre Dame (Quincy, IL)
- Quantitative Nondestructive Evaluation
- 1013.25 Mb Altimeter Subscale Setting (International Standard Atmosphere)
- Quantified Neurological Examination
- Quang Nam Electric Construction (Vietnam)
- Quick and Easy Content Management System (UK)
- Quadruple Neuromuscular Facilitation
- Queensland Newsagents Federation (Australia)
- Queensland New Filmmakers Awards (industry event; Screen Queesland; formerly Pacific Film and Television Commission; Queensland, Australia)
- Queensland Nuclear Free Alliance (Australia)
- Quilcene National Fish Hatchery (US Fish and Wildlife Service; Quilcene, WA)
- Quantitative Fit Testing
- Query Name Family Violence (police incident code; New Zealand)
- Quantitative Nuclear Grading (image analysis)
Samples in periodicals archive:
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(m) matching contributions and qualified nonelective contributions can be used in determining the non-HCEs' ADP or ACP for nondiscrimination testing.
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).