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▷ ▶ PR participant rollover from a Dual Qual plan SelectSmart.com free Business flowcharts and decision trees.
A SelectSmart.com Flowchart by mattw. See mattw's 4me blog page.
Viewed 428 times. Created December 2013.
This SelectSmart.com Business flowchart, a free online decision tool is a creation of mattw and for amusement purposes only. The implicit and explicit opinions expressed here are the author's. SelectSmart.com does not necessarily agree.
BusinessPR participant rollover from a Dual Qual plan
By mattw
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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.

               
Is rollover from dual qual plan to another dual qual plan?
YES
No US or PR withholding.
1099-R: Box 1 = Gross amount Box 2a = 0 Box 4 = 0
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
 

NO








Is rollover from a dual qual plan to a PR only plan or PR IRA?
YES
20% US withholding applies to the earnings portion of the distribution. Is the distribution a total distribution?
YES
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.
1099-R: Box 1 = Gross amount Box 2a = earnings Box 4 = 20% X earnings
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

NO



NO





Is rollover from a dual qual plan to a US only plan or US IRA?
YES
Is the distribution a total distribution?
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.
1099-R: Box 1 = Gross amount Box 2a = earnings Box 4 = 20% X earnings
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

NO


NO

YES





Apply normal withholding and reporting rules.
10% PR withholding applies. Does the PR withholding exceed the PR source contributions?
20% PR withholding applies. Does the PR withholding exceed the PR source contributions?
YES
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.
1099-R: Box 1 = Gross amount Box 2a = excess Box 4 = 20% x excess


NO

YES


NO




No US withholding.
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.
No US withholding.
1099-R: Box 1 = Gross amount Box 2a = 0 Box 4 = 0
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









1099-R: Box 1 = Gross amount Box 2a = 0 Box 4 = 0
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
1099-R: Box 1 = Gross amount Box 2a = excess Box 4 = 20% x excess
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
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