FAQ 58: ADP--QNEC source not showing up as a correction option


In a 401(k) plan, when trying to determine how much QNEC would be required to pass an ADP test, if I have created a QNEC source in my plan specs, how does it transfer to the screen where I am setting up test options? There is no QNEC source showing in that box and it's telling me that I need that source. Beyond creating it in the plan specs, what do I do to get it to the test options screen?


All that you should need to do is to assign a source description number to source 4 or higher and save the specs. Don't try to use sources 1, 2 or 3 for the QNEC as they are pre-defined as deferral, PS, and matching.