I have $60K in a Puerto Rico 1165e from when I worked there. I do not live there now and will not live there again. All I want to do is roll that money into a rollover IRA at Vanguard in the states. Sounds simple? It's not. I've spent 8 hours on the phone with about 9 people and I still don't have an trustworthy answer.
Unanimously everyone says that the PR bank will take 20% and give it to the PR government. The consequences of that no one can agree on.
My question is then what? Can I get that 20% as a tax credit here in the US? Since I don't owe any more taxes here will the Feds just give me a $12K refund even though that 12K is in PR?
Am I done paying taxes on it? Will I have to pay a 10% penalty? To avoid the 10% early withdrawal penalty if I put it in a IRA here I will have to pay taxes on it again when I take it out?
Thanks for any help!!!
Jeff
Unanimously everyone says that the PR bank will take 20% and give it to the PR government. The consequences of that no one can agree on.
My question is then what? Can I get that 20% as a tax credit here in the US? Since I don't owe any more taxes here will the Feds just give me a $12K refund even though that 12K is in PR?
Am I done paying taxes on it? Will I have to pay a 10% penalty? To avoid the 10% early withdrawal penalty if I put it in a IRA here I will have to pay taxes on it again when I take it out?
Thanks for any help!!!
Jeff