EP Exam Process Guide - Puerto Rico Plans FAQs - What are the major differences in the Codes for cash or deferred arrangement plans?


The major differences are:

  • the method for determining excluded employees under coverage testing,
  • the definition of Highly Compensated Employee,
  • Average Deferral Percentage test, methodology and correction methods,
  • there is no Average Contribution Percentage test in Puerto Rico, and
  • the dollar amount that can be deferred..

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