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
Carlos A. Padilla
Antonio L. García
The Department of the Treasury of Puerto Rico issued Circular Letter of Tax Policy No. 16-07 announcing the dollar limitations for pension plans and other retirement-related items for tax year 2017. Local limits that depend on IRS limits were modified in accordance with IRS News Release IR-2016-141. Pension limitations for the 2017 tax year are as follows:
• The annual benefit limitation for defined benefit plans under Section 1081.01(a)(11)(A)(i) increases to $215,000.
• The annual additions limitation for defined contribution plans under Section 1081.01(a)(11)(B)(i) increases to $54,000.
• The annual compensation limit under Section 1081.01(a)(12) increases to $270,000. • The limitation used in the definition of highly compensated employee under Section 1081.01(d)(3)(E)(iii) remains unchanged at $120,000.
• 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 remains unchanged at $18,000.
• The Additional Contributions (or catch-up contributions) limitation for federal government employees aged 50 and over remains unchanged at $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.
Circular Letter of Tax Policy No. 16-07 can be accessed here.
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