Puerto Rican Plans

[Guest Admin]

Anyone have any advice on taking on a Puerto Rican Retirement plan, a section 165. Ive just started looking in to whats involved but I don't want to have to commit significant time of training for someone, for a single 50 life plan, but if it can be run smoothly with reasonable training time We'd look into it. Any advice would be welcome.

Thanks

[Guest Jose Rosario]

They can be run absolutely smoothly with very minimal training.

If memory serves, the only major differences were that the I.R. Code of course is n/a, the P.R. Tax Code governs, although for almost all intents and purposes the P.R. Code has been developed to virtually mirror the I.R. Code.

I haven't worked on a PR pre-tax plan in about 5 years, but I do rememebr that they used the old 1/3 vs 2/3 hce:nhce split for ADP testing, there was no ACP, and the annual deferral limit was a flat $7,000 (probably increased now, although not indexed, no idea if EGTRRA-like increases enacted).

I think PR DC plans are subject only to Title I of ERISA, and DB Plans are subject to Titles I and IV, but please don't quote me on that.

All things considered, they were a much simpler breed of savings vehicle that U.S. pre-tax vehicles.