Form 4972 (2018)
See Capital Gain Election, earlier, before
completing Part II.
Line 6. Leave this line blank if your
distribution doesn’t include a capital gain
amount or you aren’t making the 20%
capital gain election, and go to Part III.
Generally, enter on line 6 the amount
from Form 1099-R, box 3. However, if you
elect to include NUA in your taxable
income, use the NUA Worksheet, earlier, to
figure the amount to enter on line 6. If you
are taking a death benefit exclusion (see
Line 9 below for the definition), use the
Death Benefit Worksheet, earlier, to figure
the amount to enter on line 6. The
remaining allowable death benefit
exclusion should be entered on line 9 if you
choose the 10-year tax option.
If any federal estate tax was paid on the
lump-sum distribution, you must decrease
the capital gain amount by the amount of
estate tax applicable to it. To figure this
amount, you must complete the Death
Benefit Worksheet, earlier, through line C,
even if you don’t take the death benefit
exclusion. Multiply the total federal estate
tax paid on the lump-sum distribution (get
this amount from the administrator of the
deceased’s estate) by the decimal on line
C of the Death Benefit Worksheet. The
result is the portion of the federal estate tax
applicable to the capital gain amount.
Then, use that result to reduce the amount
in Form 1099-R, box 3, if you don’t take
the death benefit exclusion, or reduce line
F of the Death Benefit Worksheet if you do.
Enter the remaining capital gain on line 6. If
you elected to include NUA in taxable
income and you didn’t take the death
benefit exclusion, subtract the portion of
federal estate tax applicable to the capital
gain amount from the amount on line G of
the NUA Worksheet. Enter the result on line
6. Enter the remainder of the federal estate
tax on line 18.
If you take the death benefit
exclusion and federal estate tax
was paid on the capital gain
amount, the capital gain amount
must be reduced by both the procedures
discussed above to figure the correct entry
for line 6.
Multiple recipients, see Multiple recipients
of a lump-sum distribution, earlier.
Line 8. If Form 1099-R, box 2a, is blank,
you must first figure the taxable amount.
For details on how to do this, see Pub. 575.
If you made the 20% capital gain
election, enter only the ordinary income
portion of the distribution on this line. The
ordinary income portion is the amount from
Form 1099-R, box 2a, minus the amount
from box 3 of that form. Add the amount
from line F of the NUA Worksheet if you
included NUA capital gain in the 20%
capital gain election. On the dotted line
next to line 8, write “NUA” and the amount
from line F of the NUA Worksheet.
If you didn’t make the 20% capital gain
election and didn’t elect to include NUA in
taxable income, enter the amount from
Form 1099-R, box 2a. If you didn’t make
the 20% capital gain election but did elect
to include NUA in your taxable income, add
the amount from Form 1099-R, box 2a, to
the amount from Form 1099-R, box 6.
Enter the total on line 8. On the dotted line
next to line 8, write “NUA” and the amount
from Form 1099-R, box 6.
Community property laws don’t
apply in figuring tax on the
amount you report on line 8.
Line 9. If you received the distribution
because of the plan participant’s death and
the participant died before August 21,
1996, you may be able to exclude up to
$5,000 of the lump sum from your gross
income. This exclusion applies to the
beneficiaries or estates of common-law
employees, self-employed individuals, and
shareholder-employees who owned more
than 2% of the stock of an S corporation.
Enter the allowable death benefit
exclusion on line 9. If you made the 20%
capital gain election, enter the amount from
line D of the Death Benefit Worksheet
minus the amount from line E of that
Multiple recipients. If there are multiple
recipients of the distribution not all of
whom are trusts, and you didn’t complete
Part II, enter the full allowable death benefit
exclusion on line 9. Don’t allocate the
exclusion among the recipients; the
computation under Multiple recipients of a
lump-sum distribution, earlier, effectively
allocates the exclusion.
If you completed Part II, multiply the full
allowable death benefit exclusion (don’t
allocate among the recipients) by the
percentage on line C of the Death Benefit
Worksheet. Subtract the result from the full
allowable death benefit exclusion. Enter the
result on line 9.
Line 18. A beneficiary who receives a
lump-sum distribution because of a plan
participant’s death must reduce the taxable
part of the distribution by any federal
estate tax paid on the lump-sum
distribution (get this amount from the
administrator of the deceased’s estate). Do
this by entering on line 18 the federal
estate tax attributable to the lump-sum
distribution. Also see Line 6 above if you
made a capital gain election.
Lines 24 and 27. Use the following Tax
Rate Schedule to complete lines 24 and 27.
Line 29. Multiple recipients, see Multiple
recipients of a lump-sum distribution,
Tax Rate Schedule
If the amount on
line 23 or 26 is:
Enter on line
24 or 27:
$ 0 $ 1,190 - - - - - 11% $ 0
1,190 2,270 $130.90 + 12% 1,190
2,270 4,530 260.50 + 14% 2,270
4,530 6,690 576.90 + 15% 4,530
6,690 9,170 900.90 + 16% 6,690
9,170 11,440 1,297.70 + 18% 9,170
11,440 13,710 1,706.30 + 20% 11,440
13,710 17,160 2,160.30 + 23% 13,710
17,160 22,880 2,953.80 + 26% 17,160
22,880 28,600 4,441.00 + 30% 22,880
28,600 34,320 6,157.00 + 34% 28,600
34,320 42,300 8,101.80 + 38% 34,320
42,300 57,190 11,134.20 + 42% 42,300
57,190 85,790 17,388.00 + 48% 57,190
- - - - -
31,116.00 + 50% 85,790
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