QNEC Sample Clauses
A QNEC (Qualified Nonelective Contribution) clause outlines the employer's ability to make special contributions to a retirement plan on behalf of employees, regardless of whether those employees have chosen to defer their own salary. These contributions are typically used to help a plan pass nondiscrimination testing by providing additional funds to non-highly compensated employees, ensuring the plan remains compliant with IRS regulations. The core function of a QNEC clause is to maintain the plan's qualified status and fairness by correcting testing failures and promoting equitable benefits among employees.
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QNEC. The provisions of this Section 3.04(C) apply to QNEC contributions other than Safe Harbor Nonelective Contributions described in Section 3.05(E)(2).
QNEC. QNEC means a qualified nonelective contribution which is 100% Vested at all times and which is subject to the distribution restrictions described in Section 6.01(C)(4)(b). Nonelective Contributions are not 100% Vested at all times if the Employee has a 100% Vested interest solely because of his/her Years of Service taken into account under a vesting schedule. Any Nonelective Contributions allocated to a Participant's QNEC Account under the Plan automatically satisfy and are subject to the QNEC definition.
QNEC. The provisions of this Section 3.04(C) apply to QNEC contributions.
QNEC. The term QNEC means a Qualified Non-Elective Contribution.