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SECURE 2.0: New Catch-Up Rules for Puerto Rico Plans

10/3/2025

49 4 Full Breakdown

Summary

Story summary

From 2025, SECURE 2.0 changes catch-up for Puerto Rico plans aged 60 to 63.
Eligible participants may contribute up to $10,000 or 150% of limit, cap $11,250 in 2025.
In dual-qualified plans, Puerto Rico participants are exempt from Roth; catch-up remains pre-tax.
The Puerto Rico Treasury Department says plan amendments do not require Hacienda filing, saving sponsors fees.

History

Historical Context

The Employee Retirement Income Security Act (ERISA) of 1974 set standards for pension plans, significantly shaping retirement savings in the U.S. In 2025, Puerto Rico's SECURE 2.0 allows participants aged 60 to 63 to contribute up to $10,000, reflecting a growing need for flexible retirement options in U.S. territories, especially after the island's economic challenges following Hurricane Maria in 2017.

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Story summary

From 2025, SECURE 2.0 changes catch-up for Puerto Rico plans aged 60 to 63.
Eligible participants may contribute up to $10,000 or 150% of limit, cap $11,250 in 2025.
In dual-qualified plans, Puerto Rico participants are exempt from Roth; catch-up remains pre-tax.
The Puerto Rico Treasury Department says plan amendments do not require Hacienda filing, saving sponsors fees.

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