Puerto Rico Participants

[Guest Lucie]

Does anyone know what the maximum elective deferral amount that a Puerto Rico employee may contribute. I have some information as of 1993 that states the limit as the lesser of $7,000 or 10% of compensation. Has the limit since changed to $8,000 and 12% of compensation? I am looking at a plan summary that states the limit as the lesser of $8,000 or 12% of pay for Puerto Rico employees but don't have access to any materials to verify that is the case. (Are the requirements in the Puerto Rico Income Tax Act ("ITA") or is that still the operative Act?)

[Guest Marion Chamberlin]

The maximum deferral amount for participants in Puerto Rico is $8000 or 10% of pay, whichever is greater. The amount has not been adjusted for Cost of Living. There are still no limits on compensation and they still use the 1/3-2/3rd's test on deferrals only.

[This message has been edited by Marion Chamberlin (edited 03-04-2000).]

[MWeddell]

This is an old thread, but since it contains an error, I thought that I'd correct it.

Puerto Rico IRC 1165(e)(7)(A) limits an employee's pre-tax elective contributions to the lesser of 10% of the employee's compensation or $8,000 (not indexed for inflation). Catch-up contributions in excess of this limit are not permitted.