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PS 987

Para enmendar los apartados (d)(6) y (g)(2)(C) de la Sección 1081.02 de la Ley Núm. 1 de 31 de enero de 2011, según enmendada, conocida como el “Código de Rentas Internas para un Nuevo Puerto Rico”, a los fines de modificar la definición aplicable al retiro de fondos de cuentas de retiro individual, de manera que el beneficio corresponda a la adquisición de una residencia principal y no se limite exclusivamente a la primera residencia principal, y para otros fines relacionados.

2025-2028 Session

Puerto Rico bill expands early retirement withdrawals for home purchases from first-time buyers only to any primary residence acquisition, potentially increasing housing accessibility but risking retirement savings depletion.

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Bill Summary · PS 987

Legislative bill overview

Bill PS 987 amends Puerto Rico's Internal Revenue Code to expand the definition of qualified residential property for early retirement account withdrawals. Currently, the law restricts tax-free early withdrawals to first-time home purchases only; this bill would extend the benefit to any primary residence acquisition, not just the initial purchase.

Why is this important

This change affects Puerto Rico residents' access to retirement savings for housing purchases. By removing the "first-time only" restriction, the bill could help more people access their retirement funds for housing needs, though it may also reduce retirement savings security for some individuals who make multiple primary residence changes.

Potential points of contention

  • Retirement security concerns: Allowing multiple withdrawals for different primary residences could deplete retirement savings earlier, potentially leaving individuals underfunded in later years
  • Definition ambiguity: The bill doesn't clarify what constitutes a "change" in primary residence or how frequently withdrawals could occur, potentially creating implementation and interpretation issues
  • Tax revenue impact: Expanded tax-free withdrawals reduce government revenue from income taxes on those retirement distributions, requiring potential budget adjustments

Compiled from official sources — confirm details with the bill’s official record.

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