PR Treasury Extends to November 30, 2018 the Period for Eligible Distributions from PR Qualified Retirement Plans and PR IRAs to Hurricane María Victims
An McV Employee Benefits Alert
On July 31, 2018, the Puerto Rico Treasury Department (“PR Treasury”) issued Administrative Determination No. 18-13 (“AD 18-13”) to extend until November 30, 2018 the eligible period to make distributions from PR Qualified Retirement Plans and PR IRAs to Hurricane María Victims in compliance with the requirements of Administrative Determination No. 17-29 of November 15, 2017 (“AD 17-29”) and Administrative Determination No. 18-02 of January 17, 2018 (“AD 18-02”).
AD 18-13 further provides that, retirement plans / PR IRAs distributions received between July 1, 2018 and July 31, 2018 can be treated as Hurricane María eligible distributions subject to favorable income tax treatment to the extent certain requirements are satisfied.
Hurricane Maria Plan Amendments and related withdrawal procedures previously adopted based on AD 17-29 and AD 18-02 must be reviewed in light of this new guidance to determine whether this new extension will apply automatically under the current terms of each Plan or whether a new amendment should be drafted and approved to adopt the extension.
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