IRS Determination Letter

[Guest Emiliano]

A plan has a favorable determination letter by the Puerto Rico Treasury Department (La Hacienda), not the IRS. Is this sufficient or must the plan also obtain a determination from the IRS?

[Guest svatty]

Depends ... if the Plan is sponsored by a Puerto Rican employer then they are not subject to the IRS requirements .. instead the Puero Rican tax code is based on ... I believe .. the US tax code as it stood in the late 70's .. and thus the determination letter from the Puerto Rican governmental body is proper. If instead the employer is a US company that covers Puerto Rican employees then you most likely would desire to have a US (IRS) determination letter. Remember, in the US the determination letter process is not mandatory.