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 Puerto Rico Department of the Treasury issued Circular Letter No. 14-01 announcing the dollar limitations for pension plans and other retirement-related items for tax year 2014. Some pension plan limitations will remain unchanged. However, other pension plan limitations will increase for 2014 following the IRS News Release IR-2013-86. Highlights include the following:
• The annual benefit limitation for defined benefit plans under Section 1081.01(a)(11)(A)(i) is increased from $205,000 to $210,000.
• The annual additions limitation for defined contribution plans under Section 1081.01(a)(11)(B)(i) is increased in 2014 from $51,000 to $52,000.
• The annual compensation limit under Section 1081.01(a)(12) is increased from $255,000 to $260,000.
• The limitation used in the definition of highly compensated employee under Section 1081.01(d)(3)(E)(iii) remains unchanged at $115,000.
• 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 $17,500.
• The Additional Contributions (or catch-up contributions) limitation for federal government employees aged 50 and over remains unchanged at $5,500.
• 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 No. 14-01 can be accessed here.
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