Must QNECs be contributed within a specific time frame to be eligible for inclusion in ADP tests?

Qualified Non-Elective Contributions (QNECs) must indeed be contributed within a specific timeframe to be eligible for inclusion in the Actual Deferral Percentage (ADP) tests. The timing is crucial because QNECs are used to help satisfy the non-discrimination requirements under the Internal Revenue Code. For QNECs to be taken into account in the ADP test of a plan, they must be made in the same plan year or, in some cases, within a period following the close of the plan year but before the ADP test is conducted, which usually has specific deadlines.

This requirement ensures that the contributions are timely reflected in the plans' testing processes, thereby helping to maintain compliance with IRS regulations regarding plan discrimination. Thus, adhering to the established timelines for making these contributions is essential for them to qualify in the ADP tests, reinforcing overall fairness in a retirement plan's contribution structure.

In contrast to this correct answer, other choices do not align with IRS guidelines regarding QNECs and donor timing for ADP testing. It's important for plan sponsors and administrators to be aware of these deadlines for optimal plan compliance and management.