Guest michaelv Posted February 16, 2001 Posted February 16, 2001 A US Employer sponsors a 401(k) Plan for its US employees. The Puerto Rico division of this company also sponsors a separate Plan for employees located there ("PR Plan"). It appears that Plan provisions are similar, if not identical. However, the big differences in the documents include a difference in the name of the employer (US Plan - ABC Company/PR Plan - ABC PR Company), the PR employer is organized under the laws of PR, and the PR Plan references the PR Internal Revenue Code. The Plan names are identical. However, the PR Plan references salary reduction contributions as 165(e) contributions. The surronding language convinces me that this translates into 401(k) of the US Code. The employer would like to merge these 2 plans into 1, presumably, merging the PR plan into the US Plan. Can this be done? I thought that US Plans could not cover employees of companies located outside of the US. But is this really a non-US company? Also, is Puerto Rico a territory of the US or something similar to that in which they are considered US soil for these purposes? Thanks for any comments!
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