Puerto Rico Self-Directed Solo 401k Plan

First, a solo 401(k) is not a specific or different type of 401 (k) plan, it is basically a marketing term used to describe a streamlined and simplified 401(k) plan document designed for use by owner only 401(k) plans.  Such plans are often drafted to accommodate a 401(k) plan covering only business owners (and their spouses).

A solo 401k plan can be sponsored by a Puerto Rico (PR) LLC as long as the owner-only business owner meets the solo 401k eligibility requirements:

1)      Self-employment activity: part-time or full-time

2)      Without any common-law, full time employees

VISIT HERE to learn more about the solo 401k eligibility requirements.

Since Puerto Rico is a US territory, a plan based in Puerto Rico is not a
foreign plan. This is important because foreign plans are required to file a Form 5500-EZ even if the annual fair market value (FMV) of the plan is under $250,000.

Puerto Rico has its own tax code.  Therefore,  just like other 401k plans, a solo 401k plan would need to comply with the P.R. Tax Code.  For this reason, make sure to work with a qualified attorney that specializes in the P.R. Tax code.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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