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Topical Terminology > Qualified Nonelective Contributions



1 Definition

Qualified Nonelective Contributions

For Qualified Nonelective Contributions we have a term and definition in Employee Benefits.



Qualified Nonelective Contributions (Employee Benefits)

For a 401(k) plan, employer contributions other than employee salary deferral contributions and matching contributions. Under the section 401(k) regulations, these contributions are made to help a plan pass the actual deferral percentage (ADP) test, or the actual contribution percentage (ACP) test, provided certain nondiscrimination requirements are met.




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