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Employee Benefits > Qualified Nonelective Contributions

The following information is about Qualified Nonelective Contributions.

Qualified Nonelective Contributions Defined

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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