Flexible and beneficial retirement solution.
As an employer, you will receive professional advice towards designing and implementing your retirement plan.
The Popular Master Plan is a versatile option for corporations, partnerships, sole proprietors, and self-employed individuals. Can be adopted as a Money Purchase Plan, a Profit-Sharing Plan, a 1081.01 (d) Cash or Deferred Agreement, or a combination of them.
The Popular Master Plan simplifies and reduces your defined contribution retirement plan’s implementation and operating costs by consolidating it in an institution that offers the following services:
● Plan design implementation and qualification.
● Three flexible plan adoption agreements.
● Daily valuation for participants’ record-keeping.
● Diversified investment options menu.
● Enrollment and investment education sessions.
● Support for the plan sponsor.
A fixed contribution percentage is selected upon adopting the Popular Master Plan. You can make your contribution in one or more deposits. As employer, each plan year you may contribute up to a maximum of 25% of the total compensation paid to all participants under this plan.
Under this plan, you can change the amount that is contributed to the plan on an annual basis. As the employer, you may contribute annually, in one or more payments, a maximum contribution that shall not exceed the lesser of: (i) the employer’s net profits; or (ii) the maximum amount permitted to be deducted by the employer under Internal Revenue Code of PR Section 1033.09, or any successor or similar statutory provisions hereafter enacted. Nevertheless, since your annual contribution is subject to a requisite of net profit, you may opt to not make a profit-sharing contribution in any given plan year.
In this plan, your employees make contributions through payroll deductions. Your employees choose to contribute part of their salary to the plan on a pre-tax or after-tax basis. However, as employer your contributions may be made as a profit-sharing contribution, or as an employer matching contribution tied to the employees’ contribution.
With over 50 years’ experience as leaders in fiduciary and investment services for retirement plans in Puerto Rico, Popular offers more options and the convenience of easily managing your retirement plans.
Check out our informative articles about retirement.
Discover the reasons behind proper retirement preparation.
The investment products available through retirement plans of Banco Popular are not insured by the FDIC, are not deposits or obligations, are not guaranteed by Banco Popular de Puerto Rico or its subsidiaries and/or affiliates. Investment products involve risks, including the possible loss of the invested principal. Please request a prospectus and read it carefully before investing.
The content of this material is for informational purposes only and does not constitute tax, legal or accounting advice. Banco Popular de Puerto Rico, its subsidiaries, or affiliates, do not engage in the offering of tax, legal or accounting advice.
Contributions exceeding the deductible limit will pay a tax equivalent to 10% even if the non-deductible contribution is not claimed as a deduction on your income tax return. For 2018 to 2024 tax years, the maximum annual employer and employee contribution amount per participant will be the lesser of $69,000 or 100% of the participant’s compensation. Also, the maximum compensation per participant to be used for determining contributions to the plan shall not exceed $345,000.
