Puerto Rican Participants in U.S. 401(k) Plan

One of the plan sponsors we work with recently mentioned that their U.S.-qualified plan has a couple of Puerto Rican employees participating in it. At least one of them has been contributing up to the 402(g) limit. No Form 480.70 or 6042 has ever been filed, although it's not clear to me whether this is a requirement or not. This brings up a few questions:

1. Should Puerto Rican employees participate in a 401(k) plan that does not have dual qualification?
2. If there is anything wrong with this situation, what needs to be done to fix it?

Thank you!

Dog

This may help even though it's a few years old . . .

Thanks, KW - I saw that post, but it doesn't really answer any of my questions. So if anyone else wants to chime in, that would be great!

Sorry, that's all I've got...

Hey! 

If the plan is not a Dual - Qualified plan and the participant recieve Puerto Rico Source Income, they should not be included in such plan.  The US plan can either make a a Dual-Qualification or they need to qualify a plan for Puerto Rico only participants.

Hope this helps!

Hey! Thank you, Jean!