FAQ 48: ADP--Failed test-Calculating a QMAC to satisfy a failed ADP test


I am trying to run a QMAC calculation for a plan that failed ADP. They did not have any match as they requested us to do the calculation, however, once they failed ADP, they decided that since they were going to do a match anyway, they would do a QMAC to satisfy the ADP failure. How do I run this on ASC? The QMAC options only appear under corrections setup for failed ACP.


By QMAC, if you mean a contribution allocated pro-rata to only those who made a deferral, choose "Prorata QNEC to those contributing" on the ADP side. If you mean that you want to use some actual match formula, e.g. 50% up to 6%, the ADP does not design a passing formula. You would have to use the normal match source, entering a formula and testing it to see if it passes. If there is a standard match as well as a qualified match, you would need to use the "Safe Harbor" specs on the Benefit Limits (BENLIMIT) screen to move the qualified match to its own 100% vested source.