February 2024 Compliance News Article
Puerto Rico 2024 Limits
The Puerto Rico Department of Treasury announced the 2024 limits for retirement plan sponsors of dually qualified plans and plans qualified solely in Puerto Rico.
New Limits
| Description | 2023 | 2024 |
|---|---|---|
| Compensation | $330,000 | $345,000 |
| Defined Contribution Annual Contribution Limit | $66,000 | $69,000 |
| Defined Benefit Annual Benefit Limit | $265,000 | $275,000 |
| Highly Compensated Employee* | $150,000 | $155,000 |
| Pretax Elective Deferral – Dual Qualified | $20,000 | $20,000 |
| Pretax Elective Deferral – Solely Qualified | $15,000 | $15,000 |
| Catch-up – Dual and Solely Qualified (plan not sponsored by federal government and at least age 50 by plan year end) | $1,500 | $1,500 |
| Catch-up (Only retirement plans sponsored by U.S. federal government and employees over age 50) | $7,500 | $7,500 |
| After-Tax Voluntary – Solely Qualified | 10% of the participant’s maximum recognizable compensation for all years of participation in the retirement plan | |
| Periodic payments that are not subject to 10% withholding in Puerto Rico | Retirees under age 60, the first $31,000. For those age 60 or older as of December 31, the first $35,000. | |
* Employee is highly compensated for 2024 if they received compensation in excess of $150,000 in 2023; or a shareholder owning over 5% of the voting shares or total value of all stock of the employer; or if the employer is not a corporation, owning over 5% of the capital or interest in the profits of the employer.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
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© 2024 Principal Financial Services, Inc.
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