What is QNEC stands for in 401K?

QNEC stands for Qualified Non-Elective Contribution in the context of 401(k) plans. It refers to contributions made by an employer to a participant's account that are not based on the employee's salary deferrals. QNECs are often used to help plans meet certain compliance tests, ensuring that the plan benefits all employees fairly, and must be fully vested when made.