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Puerto Rico Plan Termination


PS

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Hi, 

Good Evening!  looking for help on Puerto Rico plan termination.  This is the first time I'm handling a Puerto Rico Plan that needs to be Terminated.  I would like to under how different this is from a regular plan termination specially when it comes to a 1) forced distribution for the unresponsive participants. 

2) Any special notice that needs to be sent out to the participants? 

3) Can Participants be rolled over to an IRA account? should that be Puerto Rico Individual Retirement Account only? 

4) What are the option available for a participant that has loan? 

5) how does 5500 and Non-discrimination testing work?

Thanks

 

 

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  • 2 weeks later...

PS, I don't think you have provided enough info for anyone to properly help with your inquiry.

What kind of plan is this? DB or DC?  (Guessing DC since you asked about loans, but is it a plan with a cash or deferred arrangement? Does it have a match or after tax feature, or just profit sharing?).

Is the plan PR-qualified only or dual-qualified in both US and PR?  

If it's a 401k or 1081.01(e) plan, can you confirm that the plan sponsor does not sponsor an alternative defined contribution plan that would subject the distributions to the successor plan rule under both the US and PR law? 

 

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  • 4 weeks later...
On 6/6/2023 at 10:29 AM, bito'money said:

PS, I don't think you have provided enough info for anyone to properly help with your inquiry.

What kind of plan is this? DB or DC?  (Guessing DC since you asked about loans, but is it a plan with a cash or deferred arrangement? Does it have a match or after tax feature, or just profit sharing?).

Is the plan PR-qualified only or dual-qualified in both US and PR?  

If it's a 401k or 1081.01(e) plan, can you confirm that the plan sponsor does not sponsor an alternative defined contribution plan that would subject the distributions to the successor plan rule under both the US and PR law? 

 

Hi, This is DC plan and it is a dual-qualified.  I need to dig in to find out more on the remaining question.  I will check and confirm.  

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