I worked and lived in Puerto Rico for 17+ years (US citizen). During that time, I had the benefit of a Profit Sharing retirement plan from my employer. The plan is qualified under section 401(1) of the Internal Revenue Code and is exempt from US taxation under section 1022 of ERISA (Employee Retirement Income Security Act).
I moved permanently to the US mainland in 2010 and have been working here since. Last year (2022) I made a lump sum rollover of my PR Profit Sharing Plan funds into a new personal IRA in mainland US with UBS. When executing the rollover, the PR plan trustee (Banco Popular) retained 20% for local Puerto Rico taxes since the funds were moved out of the island.
I received form 480.7C issued by Banco Popular which documents the rollover distribution and 20% local taxation. I inquired the bank and asked if a 1099R was going to be issued and I was told that it wasnt because this fund was not US Taxable Income (only PR since it was earned while I worked and lived there).
I checked on the IRS website and using their system I was told that while this is a US Tax Free transaction, it is a reportable event.
My questions are:
1) how do I enter this on TurboTax given there will really never be a 1099R issued?
2) can I somehow inform (via TurboTax) that there was PR Tax witholding associated with this transaction?
thanks in advance.
