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Puerto Rican Plan


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Guest ERISAcatNraleigh
Posted

Facts: U.S. company has Puerto Rican subsidiary. In the past, employees of P.R. sub participated in the U.S. DC plan. Recently, the P.R. sub established its own P.R. DC plan, and its employees no longer participate in the U.S. plan - but they still have account balances in the U.S. plan. The parent company would like to spin-off P.R. assets/liabilities that are in the U.S. plan and merge them into the P.R. plan.

Question: Are the issues here the same as if the merger were between two U.S. plans? If not, what are the differences?

Posted

Several prior discussion threads that might be relevant. Perhaps the Search feature would help.

For example, http://benefitslink.com/boards/index.php?showtopic=11025

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

Posted

IRS Private Letter Ruling 200352016 might be of interest.

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