IRS Permits Puerto Rico-Qualified Plans in US Group Trusts, Extends Deadline for Certain Puerto Rico Spinoffs

Overview


Nancy Gerrie and Jeffrey Holdvogt wrote this bylined article on an IRS ruling that permits retirement plans tax-qualified only in Puerto Rico to continue to pool assets with US-qualified plans. The authors called the ruling “welcome relief for Puerto Rico plan sponsors, institutional investors, and trustees, who previously were relying on transition relief that permitted Puerto Rico-only plans to participate in US group trusts for a limited time without facing potential disqualification of the participating US plans and trusts.”