Guest newtobenefits Posted April 21, 2009 Posted April 21, 2009 Does anyone know if workers in a Puerto Rican division of a US based company can participate in a Section 125 Plan? Sources seem to say no, but need some quotable language.
J Simmons Posted April 23, 2009 Posted April 23, 2009 What sources are those? The Puerto Rico Dept of the Treasury issued a letter dated May 13, 1992 addressing when and under what circumstances cafeteria plan contributions would be subject to payroll taxation. That presupposes that employees in Puerto Rico may participate in a cafeteria plan. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
QDROphile Posted April 23, 2009 Posted April 23, 2009 Puerto Rico has its own tax code and now has a section 125 equivalent. I think you can have dual qualified 401(k) plans, but I don't think you can have dual qualified cafeteria plans. I think the Puerto Rican employees would need a separate plan, but this is not my best subject.
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