Puerto Rico Issues 2014 Plan Limits Guidance

February 12, 2014 (PLANSPONSOR.com) – The Puerto Rico Treasury Department has issued guidance on retirement plan deferral limits for 2014.

A recent brief from Groom Law Group notes that the PR Treasury issued Circular Letter 14-01 on February 3. The letter details the key deferral limits for 2014.

In particular, for plans qualified only in Puerto Rico (i.e., PR-Only Plans), and for plans qualified in both Puerto Rico and the United States (i.e., Dual-Qualified Plans), the limits on the following will increase:

  • Annual Benefit Limitation on DB Benefits (from $205,000 for 2013 to $210,000 for 2014);
  • Annual Contribution Limitation on DC Plan Contributions (from $51,000 for 2013 to $52,000 for 2014); and
  • Annual Limitation on Compensation (from $255,000 for 2013 to $260,000 for 2014).

Other plan limits such as Elective Deferrals for PR-Only Plans ($15,000), Elective Deferrals for Dual-Qualified Plans and Federal Government Thrift Plans ($17,500), and Catch-Up Contributions for PR-Only and Dual-Qualified Plans ($1,500) will remain unchanged from 2013.

Additional categories, such as the limit for highly compensated employees, are the same as U.S. plan limits released in October 2013 by the Internal Revenue Service (see “Retirement Plan Deferral Limits Unchanged for 2014”).

A copy of the brief, containing a chart of the 2014 plan limits, can be downloaded here. A copy of Circular Letter 14-01 (in Spanish) can be downloaded here.