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If you have any questions in regards to the above, please do not hesitate to contact our offices so that we may explain the amendments to the provisions of the Code in more detail. Our address is:

 

Fiddler González & Rodríguez, P.S.C., P.O. Box 363507, San Juan, PR 00936-3507. Our fax (787) 759-3108.

 

We welcome your questions and comments.


José J. Santiago

787-759-3129

jsantiag@fgrlaw.com

 

Carlos A. Padilla

787-759-3149

cpadilla@fgrlaw.com

 

Antonio L. García

787-759-3221

agarcia@fgrlaw.com

 

Edgardo Barreto

787-759-3170

ebarreto@fgrlaw.com

 

 

 

 

HACIENDA ANNOUNCES 2015 RETIREMENT PLANS’ LIMITATIONS

 

The Department of the Treasury of Puerto Rico issued Circular Letter No. 14-05 announcing the dollar limitations for pension plans and other retirement-related items for tax year 2015. Some pension limitations will remain unchanged. However, other pension plan limitations will increase for 2015 following the IRS News Release IR-2014-99. Highlights include the following:

 

  • The annual benefit limitation for defined benefit plans under Section 1081.01(a)(11)(A)(i) remains at $210,000.
  •  
  • The annual additions limitation for defined contribution plans under Section 1081.01(a)(11)(B)(i) is increased in 2015 from $52,000 to $53,000.
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  • The annual compensation limit under Section 1081.01(a)(12) is increased from $260,000 to $265,000.
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  • The limitation used in the definition of highly compensated employee under Section 1081.01(d)(3)(E)(iii) is increased from $115,000 to $120,000.
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  •  The Elective Deferral (or pre-tax contributions) limitation for employees who participate in defined contribution plans qualified under Section 1081.01(a) of the Puerto Rico Code and under Section 401(k) of the United States Code is increased from $17,500 to $18,000.
  •  
  • The Additional Contributions (or catch-up contributions) limitation for federal government employees aged 50 and over increases from $5,500 to $6,000.
  •  
  • The Elective Deferral (or pre-tax Contributions) limit for employees who participate in 1081.01(d) plans remains unchanged at $15,000.
  •  
  • The Voluntary Contributions (or after-tax contributions) limitation under Section 1081.01(a)(17) remains unchanged at 10% of the employee’s aggregated compensation since he/she began participating in the plan.
  •  
  • The Additional Contributions (or catch-up contributions) limitation for employees aged 50 and over who participate in 1081.01(d) plans remains unchanged at $1,500.

 

 

 

©2014 Fiddler, González & Rodríguez, P.S.C. This Watch has been prepared by Fiddler, González & Rodríguez, P.S.C. for informational purposes only and does not constitute legal advice. This information does not create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this without seeking advice from professional advisers. Fiddler, González & Rodríguez, P.S.C. and its members assume no responsibility to inform you of additional changes in law or any other legal issues related to the matters discussed in this e-mail.

 

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