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”).