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One of our clients has formed a company in the US Virgin Islands and wants to know if they could be added as a participating employer in their 401k plan.

Is this possible and does it raise any issues (for example because of particpant's

ss#). It is my understanding that the Virgin Islands tax laws operate as a mirror image of the IRS tax code. Virtually all of the same rules apply. That said, I don't know if elective deferrals are exempt from the local income tax, or what other issues might arise.

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