[firm] blog logo

New Procedures to Establish Qualified Plan Distributions in the U.S. and Puerto Rico

The Puerto Rico Treasury Department recently issued Internal Revenue Circular Letter 21-20, which establishes procedures for a former resident of Puerto Rico to demonstrate that distributions received from a U.S. retirement plan qualified under the Code and whose trust was created in a U.S. state are not subject to tax under the Puerto Rico Internal Revenue Code of 2011, as amended (the “Puerto Rico Code”). In order to establish that distributions received from a U.S. retirement plan are not taxable under the Puerto Rico Code, an individual is required to submit IRS Form 8898 (Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession) to the employer who maintains the plan from which the distributions are made. If the individual does not submit a Form 8898, such individual must instead submit the following information to such employer to demonstrate the individual’s change of residence: An affidavit… Continue Reading

Puerto Rico Extends the Deadline for Special Disaster Distributions

The Puerto Rico Treasury Department (?Ç£Puerto Rico Treasury?Ç¥) recently issued Internal Revenue Circular Letter (?Ç£CC RI?Ç¥) 20-29 extending the period to make ?Ç£Special Disaster Distributions?Ç¥ from qualified retirement plans and IRAs from June 30, 2020 to December 31, 2020. See our prior blog post here for details regarding what distributions qualify as Special Disaster Distributions. Other provisions of previously issued CC RI 20-09 (which provides rules applicable to distributions), CC RI 20-23 (which amends CC RI 20-09 to add additional eligible expenses), and CC RI 20-24 (which removes the requirement of signing before a notary public) continue in force. A copy of CC RI 20-29 can be found here.

December 2021
S M T W T F S
 1234
567891011
12131415161718
19202122232425
262728293031  

Archives