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Use this form to figure the tax on a qualified lump-sum distribution using the 20% capital gain election, the 10-year tax option, or both.
Form 4972 (2024) Page . 2 Section references are to the Internal Revenue Code. Future developments. For the latest information about developments related to Form 4972 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form4972. General Instructions Purpose of Form Use Form 4972 to figure the tax on a ...
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16 paź 2024 · If you have a large retirement plan balance, taking a lump-sum could trigger significant tax consequences. However, IRS Form 4972 allows you to claim preferential tax treatment if you meet a series of special requirements. The biggest requirement is that you have to be born before January 2, 1936.
To use any of these special treatments, you must complete IRS Form 4972, Tax on Lump-Sum Distributions, and attach it to your tax return. The file is in Adobe Portable Document Format (.pdf), and you will need the free Acrobat Reader to view and print the file.
13 paź 2020 · The IRS has published the 2020 version of Form 4972, which is used by participants born before January 2, 1936, and who received a lump-sum distribution from a qualified plan in 2020. The form assists participants in calculating the tax owed on a distribution using the 20% capital gain election, the 10-year tax option or both.
To fill out IRS Form 4972, you need to gather all necessary information, fill out your identifying information, calculate the tax, complete the schedule for additional taxes if applicable, review and sign the form, and finally attach it to your federal tax return.
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