- Draft and revise official plan documents, plan amendments, trust agreements, summary plan descriptions, summaries of material modifications, custodial services agreements, and administrative forms for retirement plans qualified only in Puerto Rico (i.e., P.R.-only qualified plans) and retirement plans qualified both in the United States and Puerto Rico (i.e., dual-qualified plans).
- File retirement plans with the Puerto Rico Department of the Treasury (“Hacienda”) for their qualification under Section 1081.01(a) of the Puerto Rico Internal Revenue Code of 2011 (“PRIRC”) and with the Internal Revenue Service (“IRS”) for their qualification under Section 401(a) of the United States Internal Revenue Code of 1986 (“Code”).
- Submit plan amendments, restatements, and terminations to Hacienda to obtain favorable determinations on a plan’s continued qualification or its termination and liquidation.
- Assist companies with the design, implementation, and operation of 401(k) and pension plans, including PRIRC, Code, and ERISA compliance.
- Evaluate and negotiate cybersecurity provisions for P.R.-only qualified plans.
- Assist companies with the correction of plan qualification and/or taxation failures, and, if needed, prepare and negotiate EPCRS and VCAP filings with the IRS and equivalent local filings with Hacienda.
- Represent companies in plan audits and investigations by Hacienda, the IRS, and the Employee Benefits Security Administration of the United States Department of Labor (“EBSA”).
- Assist companies with Form 5500 filings and, if needed, corrections under the EBSA’s Delinquent Filer Voluntary Compliance Program (“DFVCP”).
- Perform nondiscrimination tests for P.R.-only qualified plans (e.g., minimum coverage test, actual deferral percentage (ADP) test, and general nondiscrimination test on benefits and contributions).
- Counsel companies on the Puerto Rico and United States taxation of benefit payments (e.g., preparation of Hacienda Form 480.7C and IRS Form 1099-R) and the Puerto Rico tax deduction of plan contributions (e.g., preparation of Hacienda Form AS 6042.1).
- Advise plan sponsors and financial institutions on the use of United States investment vehicles (e.g., 81-100 group trusts) for funding P.R.-only qualified plans.
- Assist internal and external auditors with retirement plan audits (e.g., evaluation of qualification status and related contingent liabilities).
- Assist companies with the administration of Qualified Domestic Relations Orders (“QDROs”) (e.g., evaluating domestic relations orders and drafting QDRO procedures, model QDROs, and response letters to attorneys).
(787) 900-9956 San Juan, PR • Atlanta, GA
