Some Puerto Rico Plans Can Participate In ‘81-100 Group Trusts,’ IRS Rules

Certain retirement plans that satisfy the qualification requirements of the Puerto Rico tax code are eligible to participate in “81-100 group trusts,” the IRS said.

Any pension, profit-sharing or stock bonus plan, all of whose participants are residents of Puerto Rico, is eligible to participate in such group trusts, the Internal Revenue Service said Aug. 21 in Revenue Ruling 2014-24.

Such plans fall under Section 1022(i)(1) of the Employee Retirement Income Security Act, which provides that any trust forming part of such a plan is generally tax-exempt under the Internal Revenue Code if the trust is exempt ...