QNEC FEATURES Sample Clauses

QNEC FEATURES. Note: An Employer may not use the failsafe QNEC correction method to satisfy the ADP and/or ACP test for any Plan Year in which it uses the prior year testing method to satisfy such test. a. ☒ The Employer may make a discretionary QNEC in an amount determined by the Employer i The discretionary QNEC will be allocated as directed by the Employer (i) in ratio of Compensation or “test compensation”, as designated by the Employer, (ii) as uniform dollar amount, or (iii) to non-HCEs designated by the Employer as a percentage of their “test compensation” that does not exceed the QNEC limit described in Section 6.4 of the Base Plan Document (QNECs allocated as a dollar amount are subject to QNEC limit described in Section 6.4 of the Base Plan Document) A. ☒ If allocation is made under (i) or (ii) only non-HCEs share in discretionary QNEC