This is a great answer...if the question was about a distribution from a US IRA...HOWEVER, since the question was about a distribution from a Puerto Rican IRA, I believe that your answer is incorrect. I do not believe that you can rollover a PR IRA into a new US based IRA.
You might be able to make a current year contribution that would offset some of the income from the PR IRA distribution, but that would be subject to the usual limits relating to IRA contributions (Earned Income, Employer Plan coverage income limits, etc).
Larry Massey, CPA
Folsom, CA
