Common use of QNECs and QMACs Clause in Contracts

QNECs and QMACs. The Sponsoring Employer may make Qualified Matching Contributions pursuant to Section 3.7 and/or Qualified Non-Elective Contributions pursuant to Section 3.8 to satisfy the ACP Test, subject to the following limitations: (A) Qualified Non-Elective Contributions are permitted to be used in the ACP Test only to the extent that such Qualified Non-Elective Contributions satisfy the limitations of Section 1.44(e); and (B) Qualified Matching Contributions are permitted to be used in the ACP Test only to the extent that such Qualified Matching Contributions satisfy the limitations of Sections 1.44(c), 1.44(f), 1.44(g), and either 3.19(h) or 3.19(i).

Appears in 2 contracts

Sources: 401(k) Non Standardized Prototype Adoption Agreement (Michaels Stores Inc), 401(k) Non Standardized Prototype Adoption Agreement (Littelfuse Inc /De)