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

Problem:

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?


Solution:

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".