Fillable Tax On Lump-Sum Distributions (Form 4972 2013) (Page 3 of 4) in pdf

Page

Form 4972 (2013)

the beneficiary. You also received a

If you received more than one qualified

• If you are making the capital gain

qualified lump-sum distribution from your

distribution in 2013 for the same plan

election, subtract the amount in box 3 from

own plan and you were born before

participant, add them and figure the tax on

the amount in box 2a. Divide the result by

January 2, 1936. You can make an election

the total amount. If you received qualified

your percentage of distribution in box 9a.

for each of the distributions; one for

distributions in 2013 for more than one

Enter the result on Form 4972, line 8.

yourself, one as your mother’s beneficiary,

participant, file a separate Form 4972 for

• Divide the amount in box 8 by the

and one as your father’s. It does not matter

the distributions of each participant.

percentage in box 8. Enter the result on

if the distributions all occur in the same

If you and your spouse are filing a joint

Form 4972, line 11. Then, skip Step 3 and

year or in different years. File a separate

return and each has received a lump-sum

go to Step 4.

Form 4972 for each participant’s

distribution, complete and file a separate

Step 3. Use this step only if you elect to

distribution.

Form 4972 for each spouse’s election,

include NUA in your taxable income.

combine the tax, and include the combined

An earlier election on Form 4972

• If you are not making the capital gain

tax in the total on Form 1040, line 44.

or Form 5544 for a distribution

TIP

election, add the amount in box 2a to the

If you are filing for a trust that shared the

before 1987 does not prevent

amount in box 6. Divide the result by your

distribution only with other trusts, figure the

you from making an election for

percentage of distribution in box 9a. Enter

tax on the total lump sum first. The trusts

a distribution after 1986 for the same

the result on Form 4972, line 8.

then share the tax in the same proportion

participant, provided the participant was

• If you are making the capital gain

that they shared the distribution.

under age 59½ at the time of the pre-1987

election, subtract the amount in box 3 from

Multiple recipients of a lump-sum

distribution.

the amount in box 2a. Add to the result the

distribution. If you shared in a lump-sum

amount from line F of your NUA

When To File Form 4972

distribution from a qualified retirement plan

Worksheet. Then, divide the total by your

when not all recipients were trusts (a

You can file Form 4972 with either an

percentage of distribution in box 9a. Enter

percentage will be shown in Form 1099-R,

original or amended return. Generally, you

the result on Form 4972, line 8.

boxes 8 and/or 9a), figure your tax on Form

have 3 years from the later of the due date

• Divide the amount in box 8 by the

4972 as follows. (Box numbers used below

of your tax return or the date you filed your

percentage in box 8. Enter the result on

are from Form 1099-R.)

return to choose to use any part of Form

Form 4972, line 11.

Step 1. Complete Form 4972, Parts I and

4972.

Step 4. Complete Form 4972 through

II. If you make the 20% capital gain

Capital Gain Election

line 28.

election in Part II and also elect to include

If the distribution includes a capital gain,

NUA in taxable income, complete the NUA

Step 5. Complete the following

you can (a) make the 20% capital gain

Worksheet below to determine the amount

worksheet to figure the entry for Form

election in Part II of Form 4972 or (b) treat

of NUA that qualifies for capital gain

4972, line 29:

the capital gain as ordinary income.

treatment. Then, skip Step 2 and go to

Step 3.

Only the taxable amount of distributions

A. Subtract line 28 from line 25

resulting from pre-1974 participation

Step 2. Use this step only if you do not

qualifies for capital gain treatment. The

elect to include NUA in your taxable

B. Enter your percentage of the

capital gain amount should be shown in

income or if you do not have NUA.

distribution from box 9a

Form 1099-R, box 3. If there is an amount

• If you are not making the capital gain

C. Multiply line A by line B. Enter

in Form 1099-R, box 6 net unrealized

election, divide the amount in box 2a by

here and on Form 4972, line 29.

appreciation (NUA), part of it will also

your percentage of distribution in box 9a.

Also, write “MRD” on the dotted

qualify for capital gain treatment. Use the

Enter this amount on Form 4972, line 8.

line next to line 29 .

NUA Worksheet on this page to figure the

capital gain part of NUA if you make the

election to include NUA in your taxable

NUA Worksheet (keep for your records)

income.

You can report the ordinary income

Enter the amount from Form 1099-R, box 3

portion of the distribution on Form 1040,

Enter the amount from Form 1099-R, box 2a .

line 16b, Form 1040NR, line 17b, or Form

Divide line A by line B and enter the result as a decimal (rounded to at

1041, line 8 or you can figure the tax using

the 10-year tax option. The ordinary

least three places)

income portion is the amount from Form

Enter the amount from Form 1099-R, box 6

1099-R, box 2a, minus the amount from

Capital gain portion of NUA. Multiply line C by line D

box 3 of that form.

Ordinary income portion of NUA. Subtract line E from line D

Net unrealized appreciation (NUA).

Normally, NUA in employer securities

Total capital gain portion of distribution. Add lines A and E. Enter here

received as part of a lump-sum distribution

and on Form 4972, line 6. On the dotted line next to line 6, write

is not taxable until the securities are sold.

"NUA" and the amount from line E above .

However, you can elect to include NUA in

taxable income in the year received.

Death Benefit Worksheet (keep for your records)

The total amount to report as NUA

should be shown in Form 1099-R, box 6.

Enter the amount from Form 1099-R, box 3, or, if you are including

Part of the amount in box 6 will qualify for

NUA in taxable income, the amount from line G of the NUA Worksheet

capital gain treatment if there is an amount

in Form 1099-R, box 3. To figure the total

Enter the amount from Form 1099-R, box 2a, plus, if you are including

amount subject to capital gain treatment

NUA in taxable income, the amount from Form 1099-R, box 6 .

including the NUA, complete the NUA

Divide line A by line B and enter the result as a decimal (rounded to at

Worksheet on this page.

least three places)

Enter your share of the death benefit exclusion* .

Specific Instructions

Multiply line D by line C .

Name of recipient of distribution and

Subtract line E from line A. Enter here and on Form 4972, line 6

identifying number. At the top of Form

*Applies only for participants who died before August 21, 1996. If there are multiple recipients of the distribution,

4972, fill in the name and identifying

the allowable death benefit exclusion must be allocated among the recipients in the same proportion that they

number of the recipient of the distribution.

share the distribution.

Tax On Lump-Sum Distributions (Form 4972 2013) Page 3

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