Puerto Rico Plan Termination

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

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? 

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.  

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? 

 

We have received two plans for termination.  One is  PR qualified only and another one is a dual-qualified in US and PR.  I'm a little confused on you next question it says 401k or 1081.01(e) isn't both the same or rather 1081.01(e) also known as 401(k)?.  The dual-qualified plan does have 2 other DC plans however they are terminating the other two plan as well.