Form Ls Wks - Ohio Individual Income Tax Lump Sum Distribution Instructions Page 2
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4LS WKS
Rev. 8/12
Page 2
the special Ohio tax treatment, as explained in Section
A. Initial Use of Lump Sum Distribution Credit
A, and if the distribution is totally or partially rolled over
The lump sum distribution credit is computed as
into an Individual Retirement Account (IRA) or into
follows:
another retirement plan trust, the following lump sum
1. For a taxpayer 65 or older: $50 times the taxpayer’s
retirement credit is available:
remaining life years as determined from the annuity
table, below.
1. If the total distribution is rolled over into an IRA or
into another retirement plan trust, no Ohio lump sum
Note: If the lump sum distribution credit is used, the
retirement credit is available.
taxpayer cannot claim the $50 senior citizen credit.
No senior citizen credit can be claimed on a fu-
2. For a partial rollover, your Ohio lump sum retirement
ture return to which this taxpayer is a party.
credit is based only on the portion of the distribution
that is included in your Ohio adjusted gross income.
2. For a taxpayer younger than 65 who received a
qualifying distribution before Jan. 1, 1992: The
Example B(1) – The taxpayer retires and receives a
taxpayer may claim a credit of $1,000 ($50 x 20
$75,000 lump sum distribution. The taxpayer rolls over
years) or $50 times the expected remaining life of a
the total distribution, so the entire amount is excluded
taxpayer who is 65.
from Ohio adjusted gross income. There is no Ohio
credit because no portion of the distribution is included
B. Prior Use of Lump Sum Distribution Credit
in the Ohio adjusted gross income.
If you had computed a lump sum distribution credit in
a taxable year ending prior to July 1, 1983, you are
Example B(2) – The taxpayer retires and receives a
entitled to a $25 senior citizen credit once you reach
$75,000 lump sum distribution. The taxpayer rolls over
65. You cannot compute a new lump sum distribution
$50,000 of the distribution into an IRA and includes
credit if you receive a subsequent lump sum distribution.
only $25,000 in Ohio adjusted gross income. In this
example the Ohio lump sum retirement credit would be
computed based on $25,000. (Please refer to computa-
Table 1 – Retirement Income Credit Table
tion instructions in Section A on page 1.)
Amount of qualifying retirement income
Retirement income
received and included in Ohio adjusted gross
credit for the tax-
II. Lump Sum Distribution Credit
income during the taxable year
able year
R.C. sections 5747.05(D) and (F).
$ 500 or less
0
If you are 65 or older and if you receive a lump sum distribu-
Over $ 500, but not more than $1,500
$ 25
tion as defi ned by I.R.C. section 402(e)(4)(D), you may be
Over $1,500, but not more than $3,000
$ 50
entitled to claim a lump sum distribution credit, which is in
Over $3,000, but not more than $5,000
$ 80
lieu of the $50 senior citizen credit. You may qualify for
Over $5,000, but not more than $8,000
$130
this credit even if you do not report any portion of the lump
Over
$8,000, but not more than $8,000
$200
sum distribution in your Ohio adjusted gross income (line 3
on Ohio form IT 1040).
Table 2 – Unisex Table Ordinary Life Annuities One Life – Expected Return Multiples
(This life annuity table is to be used for distributions received on or after July 1, 1986.)
Age
Multiple
Age
Multiple
Age
Multiple
Age
Multiple
Age
Multiple
Age
Multiple
5
76.6
24
58.0
43
39.6
62
22.5
81
8.9
100
2.7
6
75.6
25
57.0
44
38.7
63
21.6
82
8.4
101
2.5
7
74.7
26
56.0
45
37.7
64
20.8
83
7.9
102
2.3
8
73.7
27
55.1
46
36.8
65
20.0
84
7.4
103
2.1
9
72.7
28
54.1
47
35.9
66
19.2
85
6.9
104
1.9
10
71.7
29
53.1
48
34.9
67
18.4
86
6.5
105
1.8
11
70.7
30
52.2
49
34.0
68
17.6
87
6.1
106
1.6
12
69.7
31
51.2
50
33.1
69
16.8
88
5.7
107
1.4
13
68.8
32
50.2
51
32.2
70
16.0
89
5.3
108
1.3
14
67.8
33
49.3
52
31.3
71
15.3
90
5.0
109
1.1
15
66.8
34
48.3
53
30.4
72
14.6
91
4.7
110
1.0
16
65.8
35
47.3
54
29.5
73
13.9
92
4.4
111
0.9
17
64.8
36
46.4
55
28.6
74
13.2
93
4.1
112
0.8
18
63.9
37
45.4
56
27.7
75
12.5
94
3.9
113
0.7
19
62.9
38
44.4
57
26.8
76
11.9
95
3.7
114
0.6
20
61.9
39
43.5
58
25.9
77
11.2
96
3.4
115
0.5
21
60.9
40
42.5
59
25.0
78
10.6
97
3.2
22
59.9
41
41.5
60
24.2
79
10.0
98
3.0
23
59.0
42
40.6
61
23.3
80
9.5
99
2.8
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