Use this flowchart when a Puerto Rico participant makes a rollover from a Dual Qual plan. For situations outside of the scope of this flowchart, consult PTC.
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Is rollover from dual qual plan to another dual qual plan?
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YES
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No US or PR withholding.
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1099-R:
Box 1 = Gross amount
Box 2a = 0
Box 4 = 0
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480.7C:
Box 2 = Gross amount
Box 12 = Gross amount
Box 13 =0
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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NO
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Is rollover from a dual qual plan to a PR only plan or PR IRA?
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YES
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20% US withholding applies to the earnings portion of the distribution. Is the distribution a total distribution?
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YES
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20% PR withholding gross up applies. Divide US withholding amount by 0.8 to get non-rollover amount. Rollover amount = Gross amount - non-rollover amount.
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1099-R:
Box 1 = Gross amount
Box 2a = earnings
Box 4 = 20% X earnings
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480.7C:
Box 2 = Rollover amount
Box 4 = 20% X non-rollover amount.
Box 12 = Gross amount
Box 13 = non-rollover amount
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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NO
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NO
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Is rollover from a dual qual plan to a US only plan or US IRA?
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YES
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Is the distribution a total distribution?
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10% PR withholding gross up applies. Divide US withholding amount by 0.9 to get non-rollover amount. Rollover amount = Gross amount - non-rollover amount.
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1099-R:
Box 1 = Gross amount
Box 2a = earnings
Box 4 = 20% X earnings
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480.7C:
Box 2 = Rollover amount
Box 5 = 10% X non-rollover amount.
Box 12 = Gross amount
Box 13 = non-rollover amount
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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NO
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NO
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YES
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Apply normal withholding and reporting rules.
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10% PR withholding applies. Does the PR withholding exceed the PR source contributions?
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20% PR withholding applies. Does the PR withholding exceed the PR source contributions?
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YES
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20% US withholding gross up applies. Subtract PR contributions from PR withholding to get excess. Divide excess by 0.8 to get gross up. Add gross up to PR withholding to get non-rollover amount. Rollover amount = Gross amount - non-rollover amount.
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1099-R:
Box 1 = Gross amount
Box 2a = excess
Box 4 = 20% x excess
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NO
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YES
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NO
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No US withholding.
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20% US withholding gross up applies. Subtract PR contributions from PR withholding to get excess. Divide excess by 0.8 to get gross up. Add gross up to PR withholding to get non-rollover amount. Rollover amount = Gross amount - non-rollover amount.
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No US withholding.
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1099-R:
Box 1 = Gross amount
Box 2a = 0
Box 4 = 0
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480.7C:
Box 4 = 20% X Gross amount
Box 12 = Gross amount
Box 13 = Gross amount
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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1099-R:
Box 1 = Gross amount
Box 2a = 0
Box 4 = 0
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480.7C:
Box 5 = 10% X Gross amount
Box 12 = Gross amount
Box 13 = Gross amount
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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1099-R:
Box 1 = Gross amount
Box 2a = excess
Box 4 = 20% x excess
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480.7C:
Box 5 = 10% X Gross amount
Box 12 = Gross amount
Box 13 = Gross amount
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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480.7C:
Box 4 = 20% X Gross amount
Box 12 = Gross amount
Box 13 = Gross amount
Box 15A = PR pre-tax contributions
Box 15B = after-tax contributions
Box 15C = earnings
Box 15D = Box 12 - (Boxes 15A + 15B + 15C)
Box 15E = Box 12
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PR participant rollover from a Dual Qual plan
