recordkeeping systems cannot differentiate between U.S. employees may make contributions up to $16,500.įurthermore, Puerto Rican employees may only contribute $1,000 as a catch-up contribution if they are age 50 or older by the end of the 2011 calendar year, compared to the $5,500 catch-up contribution in the United States. Puerto Rican employees may not make employee salary deferral contributions in excess of $10,000 in 2011, while U.S. qualified retirement plan is that the U.S. The primary difficulty with including Puerto Rican employees in a U.S.
#Eplan 401k login full
full time to cover a Puerto Rican territory, and for small groups of people treated as U.S. and Puerto Rico, for individuals transferred from the U.S. This alternative is generally encountered when employees initially transfer to Puerto Rico and may be on a dual payroll in both the U.S. The last alternative is to simply include Puerto Rican employees in the U.S. plan must contain provisions to satisfy the U.S. More effort is required to maintain a dual plan than a local Section 1165(e) plan in Puerto Rico, since the U.S. A dual-plan should apply for and obtain an opinion letter from the Puerto Rico Hacienda to confirm that the plan is qualified in Puerto Rico and should also obtain a U.S. These plans are generally referred to as "dual-qualified" plans.
#Eplan 401k login code
Internal Revenue Code to provide Puerto Rican employees with favorable tax benefits. and Puerto Rican employees may qualify under both the 1994 Puerto Rican Code (now the 2011 Puerto Rican Code) as well as the U.S. employers generally are reluctant to incur the expense of establishing and maintaining a Section 1165(e) plan.
However, when the number of employees in Puerto Rico are below five or 10, U.S. The most favorable Puerto Rican tax treatment will be given to Puerto Rican employees with distributions from a Section 1165(e) plan, and the least amount of administrative issues are encountered under this approach. A Section 1165(e) plan is very similar to a U.S. * Maintaining a Section 1165(e) retirement plan in Puerto Rico. The alternatives to provide retirement benefits to employees in Puerto Rico include: A separate tax structure exists, with taxes being paid to the Puerto Rican Hacienda. Social Security taxes are paid by Puerto Rican residents, since they are U.S. References here are to the 1994 Puerto Rican Code, as it will govern the interpretation of most provisions until new regulations are issued.) Although Puerto Rico is a commonwealth of the United States, no income taxes are paid in the United States on any income earned in Puerto Rico.
0 kommentar(er)
