The Puerto Rico Employees Savings Thrift Plan (PRESTO) is a retirement savings plan offered to employees in Puerto Rico. It is designed to provide employees with a range of investment options and tax advantages to help them save towards their retirement goals. PRESTO is a defined contribution plan, meaning that the retirement benefits are based on the contributions made by both the employee and employer and the investment performance of the chosen investment options. The plan allows participants to contribute a portion of their salary on a pre-tax basis, reducing their taxable income and allowing for potential tax-deferred growth. One type of PRESTO is the Basic Savings Thrift Plan, which is a mandatory option for eligible employees. Under this plan, both the employee and the employer make contributions, usually a percentage of the employee's salary, which are then invested in a selection of investment fund options. These funds typically include varying combinations of stocks, bonds, and other investment instruments to provide diversification and potential growth. Another type of PRESTO is the Optional Savings Thrift Plan, which is available for eligible employees who wish to contribute additional funds towards their retirement savings. This plan offers more flexibility in terms of contribution amounts and investment options. Participants can choose from a wider range of investment funds, including equity funds, fixed income funds, and money market funds, based on their risk tolerance and investment preferences. The PRESTO also includes a loan provision, which allows participants to borrow against their account balances for certain expenses like home purchases or educational expenses. This feature provides a valuable source of liquidity for participants when needed. In summary, the Puerto Rico Employees Savings Thrift Plan (PRESTO) is a retirement savings plan available to employees in Puerto Rico. It offers both a mandatory Basic Savings Thrift Plan and an optional Additional Savings Thrift Plan. Participants can contribute a portion of their salary on a pre-tax basis, choose from a variety of investment options, and benefit from potential tax-deferred growth. The plan also features a loan provision to provide participants with financial flexibility.