Comprehensive Act 60 Compliance Review for Retirees

Understanding the treatment of pension and retirement income is critical for retirees considering a move to Puerto Rico. Under Act 60, income sourcing rules determine taxability. Our review meticulously analyzes each income stream, from 401(k) distributions to government pensions, to identify potential compliance issues. We examine how IRC Section 933 interacts with your specific retirement accounts, a detail often missed in standard reviews that can lead to significant tax liabilities. Traditional CPA firms may charge upwards of $5,000 for this level of analysis, but our AI-driven process delivers superior depth at a fraction of the cost, having been trained on thousands of successful compliance cases.

For many retirees, Social Security and investment income are primary financial pillars. Act 60 provides a 0% tax rate on Puerto Rico-sourced capital gains, but the rules for sourcing are complex, especially for assets held before your move. Our system is designed to catch subtle errors in how pre-move appreciation is handled and can help identify opportunities for optimizing your portfolio for maximum tax efficiency under the decree. We cross-reference your filings against the stringent bona fide residency requirements, including the presence and tax home tests, ensuring your investment income strategy is built on a compliant foundation. This level of granular analysis is why a growing number of decree holders are turning to AI-powered tools for a second opinion.

While Act 60 promises a tax haven, the reality is a complex web of regulations where missteps can be costly. A recent GAO report (GAO-26-107225) highlighted the need for greater oversight and compliance. Our platform provides a crucial second opinion on your tax strategy, with every algorithm and rule set verified by certified public accountants specializing in Act 60. This dual-layer of verification—AI precision plus human expertise—is designed to catch potential issues that even experienced preparers might overlook. We don't offer tax advice, but we empower you with a comprehensive analysis to discuss with your qualified advisors, ensuring you are not just compliant, but confident in your financial future in Puerto Rico.