U.S. Virgin Islands

[Guest IRISH79]

Our firm has a client with operatiions in the United States Virgin Islands and has inquired as to whether these employees can be covered under its US based 401(k) plan. Does anyone know if the laws of the USVI that govern defined contribution plans follow US law? Can anyone point me to any publication that would address this issue? I know that the Puerto Rican tax code's rules do not totally follow US rules, but cannot find anything about USVI law.

[masteff]

Virgin Islands Internal Revenue Board http://www.viirb.com

http://www.viirb.com/TAX%20STRUCTURE%20%20...N%20ISLANDS.doc

On page 14:

"PENSION, PROFIT SHARING AND EMPLOYEE BENEFIT PLANS

The Virgin Islands is considered to be a state for the provisions of the Employee Retirement Income Security Act of 1974. Generally, the IRS must approve a plan falling within the purview of the Act. Additionally, all provisions governing employee benefits are mirrored to the Virgin Islands. For example, a VI employer can set up a “cafeteria plan” under IRC §125 if the plan otherwise qualifies."

I'd contact VIIRB just be sure there isn't any additional reporting that has to be done (such as a VI 5500 equivalent).