FAQ 656: QNEC--How to code a level dollar amount for each non-HCE?


Is there a way for me to code a QNEC of $300 per participant?


This is not an option within the ADP test itself, but you can set a QNEC contribution of $300 per participant by coding the Contribution Allocation Method in the source specs as "1-All Even", going to "Non-HCEs only" (selected by clicking on the "Show Parameters" button), and then entering the appropriate total contribution dollar amount under the "Show Total Contrb." button. For example, if there were 11 non-HCEs, enter a Discretionary Amount of $3300. When you run valuation calcs, it will allocate the contribution to all eligible non-HCES. You would then include this source in the ADP test when you set up the ADP/ACP run.