Trusts & Keogh Plans
Two essential planning tools for federal employees, retirees, and their families in Puerto Rico and across the U.S. A trust organizes how your assets reach your family; a Keogh plan builds retirement savings from self-employment income.
U.S. Federal Employees
All 50 States & PR
100% Complimentary
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Connect with a licensed federal retirement educator for complimentary guidance.
Two Tools. One Cohesive Plan for Your Family's Future.
Bridge federal benefits with state and Puerto Rico estate planning laws.
Your federal TSP, FERS pension, and FEGLI benefits follow their own federal rules and beneficiary forms. However, a Trust (Fideicomiso) and a Keogh plan work alongside them: one helps organize and protect how your hard-earned assets pass to your loved ones, while the other enables federal employees with side businesses to save substantial additional retirement income.
PWR Retirement Group provides educational guidance and coordinates with experienced estate attorneys and tax professionals to ensure your asset protection structures comply with both federal guidelines and local statutes such as the Puerto Rico Trust Act (Ley 219-2012).
Trusts (Fideicomisos)
Create clear directives for asset distribution, protect minors and heirs with special needs, and safeguard wealth from lawsuits and probate delays.
Keogh Retirement Plans
Enables federal workers earning 1099 independent contractor or small business consulting income to build significant additional tax-sheltered wealth.
Puerto Rico Tax Exclusions
Take advantage of Puerto Rico Hacienda Schedule H pension exclusions: $15,000 for individuals aged 60+ and $11,000 for those under age 60.
Not Sure Which Estate or Keogh Structure Applies to You?
A short educational session can help clarify whether a trust, a Keogh plan, or both fit your federal career.
Trusts (Fideicomisos)
A legal framework under the Puerto Rico Trust Act (Ley 219-2012) and U.S. estate laws to designate how assets are managed during life and transferred upon death.
3
Key Roles
Grantor, Trustee, Beneficiary
2
Main Types
Revocable vs. Irrevocable
219-2012
PR Trust Act
Modern legal framework in Puerto Rico
Separate
TSP / IRA Review
Beneficiary forms take legal precedence
Trusts in Real-World Family Scenarios:
Asset Protection Against Creditors
Irrevocable trusts can shelter assets from unexpected creditor liabilities or professional malpractice claims.
Protecting Heirs and Staged Inheritance
Prevent adult children from squandering lump sums by staging payouts at milestone ages (e.g., 25, 30, and 35).
Divorce & Blended Families
Ensure assets stay within your direct biological bloodline rather than being lost in spousal divorce settlements.
Incapacity Management
Allows a trusted successor trustee to manage family assets immediately without court-appointed conservatorship.
Keogh Plans (Self-Employed Retirement)
A tax-qualified retirement plan designed specifically for self-employed individuals, independent contractors, or federal employees with side businesses.
2
Plan Designs
Defined Contribution or Defined Benefit
4
Setup Steps
Plan adoption, PR Hacienda approval, Trust, Funding
$15,000
PR Exclusion (60+)
Annual tax exclusion under Schedule H
$11,000
PR Exclusion (<60)
Annual tax exclusion under Schedule H
Does a Keogh Plan Apply to Your Situation?
Employees with only W-2 federal agency wages cannot set up a Keogh plan on federal salary alone.
Eligible! Income earned from consulting, freelancing, or an LLC side venture can fund a Keogh plan.
Eligible! A federal retiree doing part-time private consulting can shelter earnings in a Keogh.
Want to Discuss?
Call us today to discuss your federal options or schedule a one-on-one session with an advisor.
Frequently Asked Questions
Clear answers to the most common questions federal employees ask regarding this service.
NO! This is one of the most dangerous misconceptions in federal estate planning. Federal beneficiary designation forms (TSP-3 for TSP, SF-2823 for FEGLI, and SF-3102 for FERS) override whatever is written in your will or trust. You must name the trust as your beneficiary on the federal forms if you wish the trust to control those proceeds.
Keogh plans allow self-employed individuals and side-business owners in Puerto Rico to deduct substantial retirement contributions from their local income taxes, while qualifying for statutory pension exclusions under Puerto Rico Internal Revenue Code Schedule H.
A revocable trust allows you to retain full control, alter terms, or dissolve the trust at any time during your life, but does not provide creditor protection. An irrevocable trust permanently transfers ownership to the trust, providing robust creditor protection and estate tax benefits.
Ready to get personalized guidance?
Schedule a consultation with our team and take the next step toward a more secure future.