Business Moves to Puerto Rico

[justanotheradmin]

I'm going to preface this by saying I know almost nothing about Puerto Rico rules. 

So if someone has a primer resource that they think has the answer - please let me know. 

Question  existing U.S. mainland plan, owner only. I am unsure of entity type, I suspect it is an LLC. I do not know which state. I will try to find out the details. 

The owner / business is moving to Puerto Rico and wants to keep their existing plan. Are there changes? Is this something that is going to be so complicated I should refer them to a different company? What things should they (I?) be aware of? I've tried some basic googling, but all of you are very quick and smart so I figured I would ask here. 

[Larry Starr]

19 hours ago, justanotheradmin said:

I'm going to preface this by saying I know almost nothing about Puerto Rico rules. 

So if someone has a primer resource that they think has the answer - please let me know. 

Question  existing U.S. mainland plan, owner only. I am unsure of entity type, I suspect it is an LLC. I do not know which state. I will try to find out the details. 

The owner / business is moving to Puerto Rico and wants to keep their existing plan. Are there changes? Is this something that is going to be so complicated I should refer them to a different company? What things should they (I?) be aware of? I've tried some basic googling, but all of you are very quick and smart so I figured I would ask here. 

PR pension law is different; I am an ERISA expert.  In the few cases over the years where this came up, we opted not to be involved.  Years ago I knew someone who did a lot of PR retirement plan work and referred a couple of cases his way.  I would suggest you look for a firm that does do PR retirement work; it's highly unlikely that it could be worth your time or resources to try to learn PR rules just to handle one plan. FWIW.

[justanotheradmin]

On 2/13/2020 at 10:48 AM, Larry Starr said:

 I would suggest you look for a firm that does do PR retirement work; it's highly unlikely that it could be worth your time or resources to try to learn PR rules just to handle one plan. FWIW.

I agree and that's what I told the advsor asking. He didn't care for my answer, but its a tiny plan and it's not something worth my time. He disagreed. I suppose sometimes the truth stings. 

[RatherBeGolfing]

I know I guy who works on PR plans, but he is a DB guy so not sure if he does PR DC work.

At least I assume its a DC plan since this is under 401k plans...

I'll reach out and see if I can get an answer.

[Doghouse]

I know a guy too. He works on US, PR, and dual qualified plans. 

Carlos Gonzalez, Esq., CPA

Tel. 787-900-9956

Fax 678-379-4111

Email: carlos@benefitspuertorico.com

Webpage: www.benefitspuertorico.com

[david rigby]

BTW, there have been several discussion threads over the years related to Puerto Rico.  If you get anything you can share, please post it here.