What is the contribution limit for employee's in Puerto Rico?
Answer:
On August 7, 2008, Act 186 amended the Puerto Rico Internal Revenue Code of 1994 to increase the annual limitation on pretax employee contributions to Puerto Rico qualified retirement plans with a cash or deferred arrangement ("Section 1165(e) plans"). Prior to the amendment, Section 1165(e) permitted employee pretax contributions up to a maximum of 10% of compensation or $8,000, whichever is less. As a result of Act 186, the percentage of pay limit is eliminated as of 2008 and the dollar amount is scheduled for gradual increases through 2013. Catch-up contributions are not permitted.
