The Defined Contribution (DC) commands let you perform annual calculations common in the administration of DC plans including: actual match, expected match, true-ups, deferral refunds, and non-elective contributions. These calculations are made by running a DC Allocation. A DC Allocation is based on a Database file with employee data (e.g., date of birth, compensation, deferrals, etc.) and a DC Plan Definition. The DC Plan Definition is a set of one or more DC Contribution Definitions , each of which defines an employer match or non-elective contribution. The calculation results are written to the same Database file containing employee data, into fields that you specify.

Example 1 - True-up calculation

1. Set up a Database containing employee data, including date of birth, date of hire, compensation, actual match made during the year, and any Employee Deferrals.
2. Set up a DC Contribution Definition which defines the expected match, taking into account the applicable employee deferrals. 
3. Set up a DC Plan Definition which includes the DC Contribution Definition in step 2.
4. Run a DC Allocation. ProVal will calculate the true-up by subtracting actual matching contributions from the expected match, saving it to the Database. The calculation will take into account any regulatory limits applied in the Regulatory Data topic of the DC Allocation.

Example 2 - Non-elective contribution

1. Set up a Database containing employee data, including date of birth, date of hire, and compensation.
2. Set up a DC Contribution Definition which defines the non-elective contribution.
3. Set up a DC Plan Definition which includes the DC Contribution Definition in step 2. 
4. Run a DC Allocation. ProVal will calculate the non-elective contribution, saving it to the Database. The calculation will take into account any regulatory limits applied in the Regulatory Data topic of the DC Allocation.