FAQ 660: ADP--What are "Excess QNEC" and "Net Contribution" columns?


We are getting an "Excess QNEC" and "Net Contribution" column in one of our plans when we run the ADP/ACP test. What is this? Is there a parameter somewhere else we need to select/deselect to correct this?


This verbiage is related to the Disproportionate Amounts testing required under the new regs beginning in 2006. The user would have set this up on the main ADP/ACP test screen to test a QNEC source, and it must have found an excess. Next time you print, choose to print the Disproportionate Amounts Support Page and review the values. There is a document on our website explaining these calcs from my webcast last December - "Advanced Compliance Webcast.pdf".