FAQ 657: QNEC--Calculated in ADP, how do I put in participants accounts?


I have a failed 401k test that will take a QNEC to pass. How do I get the calculated contributions into the employee's accounts?


When you run the ADP test, on the "Corrections Setup" screen, answer "Yes and create transactions" to the Store Returned Contrib/QNEC question. This will create the QNEC transactions. You should then process them using Calculations-Transactions-Process to move them into the employees' Account Values and Contributions screens. For details, you can review p. 80-82 in the Compliance Testing Manual.