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Sponsors of Puerto Rico-Qualified Retirement Plans May Be Required to File with PR Treasury by April 15, 2015 (PDF)

"[If] you are a calendar year employer that either restated a PR Qualified Plan or adopted a Qualification Amendment effective as of 2014, such restatement or Qualification Amendment must be filed with PR Treasury on or before April 15, 2015 (or the extended due date granted by PR Treasury to file your income tax return for 2014).... [C]alendar year employers that during 2014 adopted the amendments required by the US Supreme Court's Windsor decision and the [IRS] Notice 2014-19 (DOMA Amendments), are encouraged to file such DOMA Amendments with PR Treasury on or before April 15, 2015 (or the extended due date granted by PR Treasury to file their 2014 income tax returns), since PR Treasury is administratively considering these amendments as 'Qualification Amendments' effective as of 2014."  MORE >>

Text of DOL Form PR and Instructions: Registration for Pooled Plan Provider (PDF)

14 pages. "The Form PR is used to report information for a person or entity that intends to serve as a pooled plan provider to pooled employer plans within the meaning of sections 3(43) and 3(44) of [ERISA] and section 413(e) of the Internal Revenue Code ... You must file the Form PR electronically through the all-electronic ERISA Filing Acceptance System (EFAST2). You cannot file a paper Form PR by mail or other delivery service. Your Form PR will be initially screened electronically." [Undated; published by EBSA on Nov. 19, 2020.]

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Puerto Rico Treasury Department Announces Deadline Extension for PR Code Qualified Plan Amendments and Filings (PDF)

"CL 12-09 extends the period to amend a Puerto Rico tax qualified plan (either PR-Only or Dual-Qualified Plans) for compliance with the 2011-PR Code until the later of: (i) June 30, 2013, or (ii) the last day of the first plan year beginning on or after January 1, 2012 (e.g., October 31, 2013 for plan with a plan year beginning on November 1, 2012). In addition, CL 12-09 also extends the period to submit a request for retroactive qualification under the Puerto Rico Internal Revenue Code of 1994, as amended, for both PR-Only or Dual-Qualified Plans, until the later of: (i) September 30, 2013, or (ii) the deadline to file the income tax return of the employer for the first taxable year commencing after December 31, 2011."  MORE >>

Puerto Rico Treasury Dept. Guidance for Qualification of Retirement Plans under 2011 PR Code and Relief for Retroactive Qualification under 1994 PR Code (PDF)

[The guidance] includes a list of the 2011 PR Code qualification provisions that must be included in the plan document (or appendix/supplement to the plan) in order to obtain a qualification letter under the 2011 PR Code. However, note that a plan must have been operated in compliance with all applicable 2011 PR Code provisions since January 1, 2011, even though the plan is not amended untilsometime in 2012.

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Puerto Rico Amends Tax Rules that Impact Certain Distributions from Retirement Plans Qualified under the PR Code

"Although the original intention was to cap taxation of lump sum distributions at either the 20% or 10% tax rate as the case may be, the PR Code included both lump distributions within the computation of the [Alternative Basic Tax (ABT)] ... Pursuant to Act 65-2025, for tax years commencing after December 31, 2024, lump sum distributions from retirement plans that qualify for the preferential tax rate of 10% are exempt from the ABT."  MORE >>

PR Treasury Provides Guidance on Impact of SECURE 2.0 Amendments

"AD No. 25-03 provides that amendments for SECURE 2.0 provisions -- whether optional or mandatory -- do not constitute Qualification Amendments. This clarification is important because under long-standing PR Treasury guidance, a Qualification Amendment must be submitted to the PR Treasury for a new determination letter (even if the plan already has a recent determination letter)."  MORE >>

Puerto Rico Treasury Extends to November 30 Period for Eligible Distributions from PR Qualified Retirement Plans and PR IRAs to Hurricane Maria Victims

"AD 18-13 further provides that ... distributions received between July 1, 2018 and July 31, 2018 can be treated as Hurricane Maria eligible distributions subject to favorable income tax treatment to the extent certain requirements are satisfied."  MORE >>

Puerto Rico Treasury Department Issues Updated Guidance on PR Code Qualification of Retirement Plans (PDF)

"The Puerto Rico Treasury Department recently issued Circular Letter of Tax Policy No. 16-08 (CLTP 16-08) to update and clarify the: [1] rules regarding the effective dates of favorable determination letters issued under Section 1081.01(a) of the Puerto Rico Internal Revenue Code ... and [2] due dates and procedures for requesting determination letters for retirement plans intended to be qualified under the PR Code."  MORE >>

Puerto Rico Tax Amnesty Program Extension Could Help Retirement Plans Correct Failures with Former PR Code's Withholding and Reporting Requirements (PDF)

"[The] Tax Amnesty Program is ... available to Puerto Rico qualified retirement plans, both Puerto Rico-only qualified plans and dual-qualified plans (i.e., plans qualified both in Puerto Rico and the U.S.), that may have failed to comply with the 1994 PR Code's tax withholding (i.e., 5%, 10%, 20% Puerto Rico income tax withholdings, as applicable depending on the type and time of distribution) and reporting requirements (i.e., Forms 480.6A and 6B, and Form 480.7C, as applicable depending on the type and year of distribution) on distributions to participants in Puerto Rico."  MORE >>

IRS Disaster Relief Notice PR-2024-05, for Victims of Tropical Storm Ernesto in Puerto Rico

"[I]ndividuals and businesses in Puerto Rico that were affected by severe storms and flooding that began on Aug. 13, 2024 ... now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in all 78 municipalities qualify for tax relief."  MORE >>

Text of IRS Disaster Relief Notice PR-2022-10, for Puerto Rico Victims of Hurricane Fiona

"Victims of Hurricane Fiona beginning September 17, 2022, now have until February 15, 2023, to file various individual and business tax returns and make tax payments ... Individuals and households affected by Hurricane Fiona that reside or have a business in all 78 municipalities in Puerto Rico qualify for tax relief."

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IRS Disaster Relief Announcement PR-2022-02, for Victims of Puerto Rico Severe Storms, Flooding and Landslides

"Victims of severe storms, flooding and landslides beginning February 4, 2022 now have until June 15, 2022, to file various individual and business tax returns and make tax payments ... Individuals and households affected by severe storms, flooding, and landslides that reside or have a business in municipalities of Cataño, Dorado, Toa Baja, Vega Alta, and Vega Baja qualify for tax relief."

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PR Treasury Issues New Rules and Procedures for Qualification of Retirement Plans

"Circular Letter of Tax Policy (CLTP) 16-08 repeals and leaves without effect most of the guidance provided by Circular Letters of Internal Revenue No. 11-10 of December 16, 2011 and No. 13-02 of May 28, 2013, except certain rules regarding the qualification of retirement plans covering Puerto Rico employees on January 1, 2011.... CLTP 16-08 provides a new list of Qualification Amendments that will require a plan to seek for a new qualification letter.... The application for a qualification letter must now include [certain] additional items of information: ... CLTP 16-08 changes the deadline to request qualification letters."  MORE >>

Checklist for Required 2012 Puerto Rico Tax-Qualified Plan Amendments and Compulsory Determination Letter Filing with PR Treasury

"Sponsors of qualified retirement plans covering employees who are bona-fide residents of Puerto Rico, or who perform labor or services primarily within Puerto Rico, regardless of residence for other purposes (Puerto Rico Employees), are required to amend their plans before the end of the 2012 plan year (December 31, 2012, for a plan with a calendar plan year) in compliance with qualification requirements of the Puerto Rico Internal Revenue Code of 2011[.]"  MORE >>

Majority of 401(k) Plan Participants Accumulate More Debt Than Retirement Savings

"[O]ver 60% of workers participating in a Defined Contribution (DC) Plan accumulated more debt than they contributed to retirement savings between 2010 and 2011 ... 20% of participants in 401(k) retirement programs added more credit card debt to their family balance sheet than they contributed to retirement savings.... Most DC participants who accumulate debt faster than retirement savings are over 40 years old, college educated, earn over $50,000, and have insufficient emergency savings."

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Both Genders Are Saving More for Retirement But Men Are 'Paying More Attention'

"Only 28% of respondents [to a survey conducted by MassMutual] currently have, or have had in the past five years, a relationship with a personal financial advisor. However, many more men have one (31%) compared to women (24%), and the gender difference here has increased since 2011 when 30% of men had an advisor vs. 27% of women. Significantly, retirement as a major savings objective is 20 points higher among participants with a professional financial advisor than for those without one (77% vs. 57% respectively)."  MORE >>

Proposed Pension Relief Legislation for Charities

"U.S. Reps. Susan Brooks (R-IN) and Ron Kind (D- WI) introduced bipartisan legislation to provide relief to non-profits such as local Girl Scout councils, which now have higher pension funding rules than taxable, for-profit companies.... The Charitable Pension Flexibility Act applies to charity pension plans with multiple entities that are exempt from normal pension funding rules until 2017. This straightforward bill would permit such plans to elect into the normal rules in 2014. A technical correction that previously passed the Senate would have permitted this same option."  MORE >>

DOL Guidance Clarifies Action Steps for Puerto Rico Retirement Plan Sponsors on Definitions of 'Spouse' and 'Marriage' (PDF)

"Retirement plans intended to be qualified only under the provisions of the Puerto Rico Internal Revenue Code of 2011... are generally not subject to the provisions of the U.S. Internal Revenue Code ... or the jurisdiction of the IRS (PR-Only Plans). Consequently, the IRS interpretations in RR 2013-17 are not applicable to PR-Only Plans. Nevertheless, PR-Only Plans are subject to the provisions of Title I of ERISA and to the jurisdiction of the DOL. Consequently, TR 2013-04 is fully applicable to PR-Only plans for purposes of Title I of ERISA (e.g., spousal consent requirements, beneficiary designations). On the other hand, it would appear that the current definitions of 'spouse' and 'marriage' under Puerto Rico law (i.e., no same-sex marriages and no domestic partnerships or civil unions) continue to apply with respect to those provisions and requirements of the PR Code which are not subject to ERISA (e.g., hardship withdrawals)."

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The Race to Register: DOL Issues Final Rule on PPP Registration

"The Final Rule creates a new Form PR that PPPs will be required to file at least 30 days before the PPP 'begins operations.' ... [T]he Form PR will be publically available, and requires the disclosure of certain information that is both sensitive and confidential.... [The authors] expect that both the DOL and plaintiffs counsel will use the Form PR database for purposes of targeting enforcement efforts and lawsuits. Moreover, the failure to file the initial Form PR or any supplement could endanger the status of the PPP, and ultimately the PEP."  MORE >>

Puerto Rico Treasury Department Provides Helpful Clarification of Deduction Limit for Contributions to Defined Benefit Plans (PDF)

"Effective for taxable years beginning on or after January 1, 2011, the 2011 PR Code now imposes a 10% excise tax on contributions in excess of the 2011 PR Code applicable limits ("Non-Deductible Contributions"). The 2011 PR Code includes an exception to the applicable percentage limitation on contributions, allowing a deduction for contributions up to the amount required to comply with the minimum funding standards [of ERISA] ... In A.D. 12-13, the PR Treasury has [clarified that] for Puerto Rico income tax purposes, a deduction for contributions made to a Puerto Rico qualified plan to comply with [ERISA] requirements would be allowed even if in excess of the applicable percentage limitation on contributions under Puerto Rico law. Consequently, such contributions would not be subject to the new 10% excise tax on non-deductible contributions."

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