Instructions For Form N-152 - Tax On Lump-Sum Distributions

Page 3

To figure the total taxable amount sub-

distribution. If you elect to include NUA

The remaining allowable death benefit

ject to capital gain treatment including the

in taxable income, include the amount

exclusion should be entered on line 16 if

NUA, complete the NUA Worksheet on

from Box 6 of federal Form 1099-R in the

you choose the 10-year tax option.

page 3.

amount on Schedule J (Form N-11/N-

If any federal estate tax was paid on

15/N-40), line 1.

See the Specific Instructions for more

the lump-sum distribution, you must

information on line entries.

decrease the capital gain amount by the

Part II

amount of estate tax applicable to it. To

Specific Instructions

See Capital Gain Election on page 2

figure the amount, multiply the total fed-

before completing Part II.

eral estate tax paid on the lump-sum dis-

Name of Recipient of Distribution

Line 9. — Leave this line blank if your

tribution by the decimal amount from line

and Identifying Number. — At the top of

distribution does not include a capital gain

E of the Death Benefit Worksheet. The

Form N-152, fill in the name and identify-

amount, or you do not make the capital

result is the portion of the federal estate

ing number of the recipient of the distribu-

gain election. Go to Part III.

tax applicable to the capital gain amount.

tion.

To make the capital gain election enter

Subtract that amount from the capital

If you received more than one qualifying

on line 9 the entire capital gain amount

gain amount from line H of the Death

distribution in 2012 for the same plan par-

from Form 1099-R, Box 3. However, if

Benefit Worksheet, and enter the result

ticipant, add them and figure the tax on

you elect to include NUA in your taxable

on line 11. If you elected to include NUA

the total amount. If you received qualified

income, enter on line 9 the amount from

in taxable income, subtract the portion of

distributions in 2012 for more than one

line G of the NUA Worksheet on this page

federal estate tax applicable to the capital

participant, file a separate Form N-152 for

instead of the amount from Form 1099-

gain amount from the amount on line G of

the distributions of each participant.

R, Box 3. On the dotted line to the left

the NUA Worksheet. Enter the result on

If you and your spouse are filing a joint

of the entry space for line 9, write “NUA”

line 11. Enter the remainder of the federal

return and each has received a lump-sum

and the amount from line E of the NUA

estate tax on line 26.

distribution, complete and file a separate

Worksheet.

Note: If you take the death benefit exclu-

Form N-152 for each spouse’s election,

To make the capital gain election when

sion AND federal estate tax was paid on

and combine the tax on Form N-11, line

you are taking a death benefit exclu-

the capital gain amount, the capital gain

27; or Form N-15, line 43.

sion (for a participant who died before

amount must be reduced by both the

If you are filing for a trust that shared the

August 21, 1996), figure the amount to

above procedures to figure the correct

distribution only with other trusts, figure

enter on line 11 using the Death Benefit

entry for line 11.

the tax on the total lump sum first. The

Worksheet on this page.

trusts then share the tax in the same pro-

portion that they shared the distribution.

If the distribution is made to more than

NUA Worksheet (keep for your records)

one beneficiary, follow the instructions

Do not complete if you do not make a capital gain election

under Multiple Recipients of a Lump-

Sum Distribution on page 4.

A. Enter the amount from Form 1099-R, Box 3 .................................. A.

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

Part I

C. Divide line A by line B and enter the result as a decimal (rounded

Line 2.— Income received as a pen-

to at least three places) .................................................................. C.

sion for past services is not subject to

D. Enter the amount from Form 1099-R, Box 6 .................................. D.

Hawaii income tax. Only that portion of

E. Multiply line C by line D and enter the result (NUA subject to

a retirement or profit-sharing plan that is

capital gain treatment) .................................................................... E.

received because of your retirement or

Subtract line E from line D (NUA that is ordinary income) .............. F.

the death of the employee and is paid for

G. Add lines A and E (total part of distribution that can receive capital

gain treatment). Enter the total here and on Form N-152, Part II,

by the employer is considered a pension

line 9 .............................................................................................. G.

for this purpose. If you did not contribute

On the dotted line next to line 9, write “NUA” and the amount from

to the cost of the plan, i.e., your employer

line E above.

paid the entire cost, check “Yes” on line 2.

No part of the distribution is subject to Ha-

Death Benefit Worksheet (keep for your records)

waii income tax. Do not complete the rest

A. Enter the capital gain amount from Form 1099-R, Box 3. If you

of the form. If you paid part of the cost of

elected to include NUA in taxable income, enter the amount from

the plan and your employer paid part of

line G of the NUA Worksheet .......................................................... A.

the cost, that portion considered to have

B. Enter the factor from Schedule J, line 16. ....................................... B.

been paid by your employer is a pension.

C. Multiply line A by line B. ................................................................. C.

The portion that you are considered to

D. Enter the amount from Schedule J, line 20. .................................... D.

have paid is not a pension and is subject

E. Divide line C by line D and enter the result as a decimal (rounded

to Hawaii income tax. If you paid part of

to at least three places) .................................................................. E.

the cost of your plan, check “No” on line

Enter your share of the death benefit exclusion* ............................ F.

2. You will need to complete Schedule J

G. Multiply line F by line E ................................................................... G.

(Form N-11/N-15/N-40) to determine the

H. Subtract line G from line C. Enter the result here and on Form

taxable portion of your distribution.

N-152, Part II, line 11. Write “DBE” in the amount space for line 9. H.

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

Complete Schedule J (Form N-11/N-

of the distribution, the $5,000 maximum death benefit exclusion must be allocated among the

15/N-40) If you qualify to use this form,

recipients in the same proportion that they share the distribution.

you will need to complete Schedule J

to determine the taxable portion of your

Instructions For Form N-152 - Tax On Lump-Sum Distributions - 2012 Page 3

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