Is there a vendor with a Hacienda-preapproved document to tax-qualify for Puerto Rico?

[Peter Gulia]

Does any vendor of IRS-preapproved plan documents offer a version that is similarly Hacienda-preapproved to meet Puerto Rico’s tax-qualification conditions?

If any, is it available with IRC § 401(a)? with IRC § 403(b)?

If not available as a dual-qualified document, does any vendor offer a document on which Hacienda issued a preapproval letter so a user may rely without submitting its own application?

[MDCPA]

I'm not aware the Hacienda has a preapproval process. It is my understanding that any plan intended to qualify under Puerto Rico Code must submit for it's own determination letter.

[Peter Gulia]

MDCPA, thank you for confirming what I feared.

A practical result is that my pro bono client, a charity, cannot provide a retirement plan for a member charity's Puerto Rico employees. I am not admitted to practice before Puerto Rico’s Hacienda. Engaging a lawyer or certified public accountant who is admitted and competent to tax-qualify a retirement plan under Puerto Rico’s law is beyond either charity’s budget.

[CuseFan]

Peter, we have a PR RK practice and the leader of that practice tells me we have a pre-approved plan with Hacienda (but not dual qualified). I'll have him or someone from that group contact you. Thanks

[CuseFan]

3 minutes ago, CuseFan said:

we have a PR RK practice

BPAS

[MDCPA]

CuseFan - good to know. thanks!

[Peter Gulia]

CuseFan, thank you for the good news.

And Bloomberg BNA's Tax Management Portfolio "International Pension Planning - Puerto Rico" (which I didn't have until today) confirms that Hacienda has a procedure for approving a prototype plan.

[CuseFan]

You're welcome.