In a welcome development for employers working to maintain tax-qualified retirement plans for their employees in Puerto Rico, the Puerto Rico Department of Treasury (the “Hacienda”) last week issued Circular Letter No. 12-09, extending two important deadlines:

  • The deadline for amending plans to comply with the Puerto Rico Internal Revenue Code of 2011 (“2011 PRIRC”) was extended to June 30, 2013, or, if later, the last day of the first plan year beginning on or after January 1, 2012.
  • The deadline for applying for a determination that the plan complies with the 2011 PRIRC was extended to September 30, 2013, or, if later, to the deadline for filing the plan sponsor’s income tax return for the first taxable year commencing on or after December 31, 2011.

Employers who wish to apply for a retroactive determination under the Puerto Rico Internal Revenue Code of 1994 must concurrently apply for a determination under the 2011 PRIRC, and the applications must be submitted together by the applicable deadline. 

The extensions apply to retirement plans that provide benefits solely to employees in Puerto Rico (so-called “Puerto Rico only” plans) and to retirement plans that provide benefits to employees in Puerto Rico and the mainland United States (so-called “dual-qualified plans”).

Tags: Hacienda, Puerto Rico
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Photo of William Woolston William Woolston

Will Woolston is a partner in the firm’s Washington office who advises employers large and small on all aspects of employee benefits and executive compensation.  Mr. Woolston’s practice focuses significantly on tax-qualified retirement plans, with a particular emphasis on “hybrid” defined benefit plans…

Will Woolston is a partner in the firm’s Washington office who advises employers large and small on all aspects of employee benefits and executive compensation.  Mr. Woolston’s practice focuses significantly on tax-qualified retirement plans, with a particular emphasis on “hybrid” defined benefit plans like cash balance and pension equity plans.  Mr. Woolston regularly represents clients on matters before the Internal Revenue Service and the Department of the Treasury, and has assisted many companies in resolving with the IRS operational and administrative errors in qualified plans.  In addition to his qualified plan work, Mr. Woolston also advises clients on the full spectrum of executive compensation matters, including equity compensation arrangements, employment agreements, and compliance with the deferred compensation requirements of Section 409A of the Internal Revenue Code.

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