Request a Proposal

QMAC and QNEC Regulations

The IRS has issued final regulations clarifying that forfeitures would be permitted to be used to fund matching contributions (QMACs) and qualified nonelective contributions (QNECs). “An employer contribution to a plan may be classified as a QMAC or QNEC if it satisfies applicable nonforfeitability requirements and distribution limitations at the time it is allocated to a participant’s account”, but does not need to meet such requirements or limitations when its contributed to the plan.

www.plansponsor.com; July 20, 2018.