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                                            Tax on Lump-Sum Distributions                                                   OMB No. 1545-0193
Form  4972                            (From Qualified Plans of Participants Born Before January 2, 1936)
Department of the Treasury                    Attach to Form 1040, 1040-SR, 1040-NR, or 1041.                               Attachment2023
Internal Revenue Service                    Go to www.irs.gov/Form4972 for the latest information.                          Sequence No. 28
Name of recipient of distribution                                                                           Identifying number

Part I        Complete this part to see if you can use Form 4972
1     Was  this  a  distribution  of  a  plan  participant’s  entire  balance  (excluding  deductible  voluntary  employee        Yes No
      contributions  and  certain  forfeited  amounts)  from  all  of  an  employer’s  qualified  plans  of  one  kind  (for 
      example, pension, profit-sharing, or stock bonus)? If “No,” don’t use this form  .   .    .  . .  . . .           . .  1 
2     Did you roll over any part of the distribution? If “Yes,” don’t use this form    . . .    .  . .  . . .           . .  2 
3     Was this distribution paid to you as a beneficiary of a plan participant who was born before January 2, 1936?          3 
4     Were you ( )aa plan participant who received this distribution, ( ) bornb before January 2, 1936,     and (c) a 
      participant in the plan for at least 5 years before the year of the distribution?  . .    .  . .  . . .           . .  4 
      If you answered “No” to both questions 3 and 4, don’t use this form.
5 a   Did you use Form 4972 after 1986 for a previous distribution from your own plan? If “Yes,”        don’t use this 
      form for a 2023 distribution from your own plan  .     .  .  .  .   . .   . .    . . .    .  . .  . . .           . .  5a 
b     If you are receiving this distribution as a beneficiary of a plan participant who died, did you use Form 4972 
      for a previous distribution received as a beneficiary of that participant after 1986? If “Yes,”   don’t use this
      form for this distribution  .     . . . .   . .    . . .  .  .  .   . .   . .    . . .    .  . .  . . .           . .  5b
Part II       Complete this part to choose the 20% capital gain elections (see instructions)
6     Capital gain part from Form 1099-R, box 3  .       . . .  .  .  .   . .   . .    . . .    .  . .  . . .             6 
7     Multiply line 6 by 20% (0.20)       . . .   . .    . . .  .  .  .   . .   . .    . . .    .  . .  . . .             7 
      If you also choose to use Part III, go to line 8. Otherwise, include the amount from line 7 in the total 
      on Form 1040, 1040-SR, or 1040-NR, line 16, or Form 1041, Schedule G, line 1b. Be sure to check 
      box 2 on Form 1040, 1040-SR, or 1040-NR, line 16.
Part III      Complete this part to choose the 10-year tax option (see instructions)
8     If  you  completed  Part  II,  enter  the  amount  from  Form  1099-R,  box  2a,  minus  box  3.  If  you  didn’t 
      complete  Part  II,  enter  the  amount  from  box  2a.  Multiple  recipients  (and  recipients  who  elect  to 
      include net unrealized appreciation (NUA) in taxable income), see instructions .     .    .  . .  . . .             8 
9     Death benefit exclusion for a beneficiary of a plan participant who died before August 21, 1996  .    .             9 
10    Total taxable amount. Subtract line 9 from line 8  .   .  .  .  .   . .   . .    . . .    .  . .  . . .             10 
11    Current actuarial value of annuity from Form 1099-R, box 8. If none, enter -0-  .    .    .  . .  . . .             11 
12    Adjusted total taxable amount. Add lines 10 and 11. If this amount is $70,000 or more, skip lines 13 
      through 16, enter this amount on line 17, and go to line 18 .   .   . .   . .    . . .    .  . .  . . .             12 
13    Multiply line 12 by 50% (0.50), but don’t enter more than $10,000  .      . .    .   13 
14    Subtract $20,000 from line 12. If line 12 is $20,000 or 
      less, enter -0-  .          . . . . . . .   . .    . . .     14 
15    Multiply line 14 by 20% (0.20)  .     . .   . .    . . .  .  .  .   . .   . .    .   15 
16    Minimum distribution allowance. Subtract line 15 from line 13       . .   . .    . . .    .  . .  . . .             16 
17    Subtract line 16 from line 12 .     . . .   . .    . . .  .  .  .   . .   . .    . . .    .  . .  . . .             17 
18    Federal estate tax attributable to lump-sum distribution     .  .   . .   . .    . . .    .  . .  . . .             18 
19    Subtract line 18 from line 17. If line 11 is zero, skip lines 20 through 22 and go to line 23  .  . . .             19 
20    Divide line 11 by line 12 and enter the result as a decimal (rounded to at least 
      three places) .      .      . . . . . . .   . .    . . .  .  .  .   . .   . .    .   20        .
21    Multiply line 16 by the decimal on line 20    .    . . .  .  .  .   . .   . .    .   21 
22    Subtract line 21 from line 11       . . .   . .    . . .  .  .  .   . .   . .    .   22 
23    Multiply line 19 by 10% (0.10)  .     . .   . .    . . .  .  .  .   . .   . .    . . .    .  . .  . . .             23 
24    Tax on amount on line 23. Use the Tax Rate Schedule in the instructions  .       . . .    .  . .  . . .             24 
25    Multiply line 24 by 10.0. If line 11 is zero, skip lines 26 through 28, enter this amount on line 29, and 
      go to line 30  .     .      . . . . . . .   . .    . . .  .  .  .   . .   . .    . . .    .  . .  . . .             25 
26    Multiply line 22 by 10% (0.10)  .     . .   . .    . . .  .  .  .   . .   . .    .   26 
27    Tax on amount on line 26. Use the Tax Rate Schedule in the instructions  .       .   27 
28    Multiply line 27 by 10.0  .       . . . .   . .    . . .  .  .  .   . .   . .    . . .    .  . .  . . .             28 
29    Subtract line 28 from line 25. Multiple recipients, see instructions  .   . .    . . .    .  . .  . . .             29 
30    Tax on lump-sum distribution.         Add lines 7 and 29. Also, include this amount in the total on Form
      1040, 1040-SR, or 1040-NR, line 16 (check box 2), or Form 1041, Schedule G, line 1b          . .  . . .             30 
For Paperwork Reduction Act Notice, see instructions.                           Cat. No. 13187U                              Form 4972 (2023)

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Form 4972 (2023) Page 2
Section references are to the Internal Revenue • U.S. Retirement Plan Bonds distributed with 1. If you don’t use Form 4972, and you file:
Code. the lump sum. a. Form 1040, 1040-SR, or 1040-NR. Report
Future developments. For the latest • A distribution made during the first 5 tax the entire amount from box 1 (Gross
information about developments related to years that the participant was in the plan, distribution) of Form 1099-R on line 5a, and
Form 4972 and its instructions, such as unless it was made because the participant the taxable amount on line 5b. If your pension
legislation enacted after they were published, died. or annuity is fully taxable, enter the amount
go to www.irs.gov/Form4972. • The current actuarial value of any annuity from box 2a (Taxable amount) of Form
contract included in the lump sum (Form 1099-R on line 5b; don’t make an entry on line
General Instructions 1099-R, box 8, should show this amount, 5a.
which you use only to figure tax on the b. Form 1041. Report the amount on line 8.
Purpose of Form ordinary income part of the distribution). 2. If you don’t use Part III of Form 4972, but
Use Form 4972 to figure the tax on a qualified • A distribution to a 5% owner that is subject use Part II, report only the ordinary income
lump-sum distribution (defined below) you to penalties under section 72(m)(5)(A). portion of the distribution on Form 1040,
received in 2023 using the 20% capital gain 1040-SR, or 1040-NR, lines 5a and 5b; or on
election, the 10-year tax option, or both. • A distribution from an IRA.
These are special formulas used to figure a • A distribution from a tax-sheltered annuity Form 1041, line 8. The ordinary income
separate tax on the distribution that may (section 403(b) plan). portion is the amount from box 2a of Form
result in a smaller tax than if you reported the • A distribution of the redemption proceeds of 1099-R, minus the amount from box 3 of that
taxable amount of the distribution as ordinary bonds rolled over tax free to a qualified form.
income. pension plan, etc., from a qualified bond 3. If you use Part III of Form 4972, don’t
You pay the tax only once, for the year you purchase plan. include any part of the distribution on Form
receive the distribution, not over the next 10 • A distribution from a qualified plan if the 1040, 1040-SR, or 1040-NR, lines 5a and 5b;
years. The separate tax is added to the participant or his or her surviving spouse or on Form 1041, line 8.
regular tax figured on your other income. previously received an eligible rollover The entries in other boxes on Form 1099-R
distribution from the same plan (or another may also apply in completing Form 4972.
Related Publications plan of the employer that must be combined • Box 6 (Net unrealized appreciation in
For more information related to this topic, see with that plan for the lump-sum distribution employer’s securities). See Net unrealized
the following publications. rules) and the previous distribution was rolled appreciation (NUA), later.
• Pub. 575, Pension and Annuity Income. over tax free to another qualified plan or an • Box 8 (Other). Current actuarial value of an
• Pub. 721, Tax Guide to U.S. Civil Service IRA. annuity.
Retirement Benefits. • A distribution from a qualified plan that How Often You Can Use Form 4972
• Pub. 939, General Rule for Pensions and received a rollover after 2001 from an IRA After 1986, you can use Form 4972 only once
Annuities. (other than a conduit IRA), a governmental for each plan participant. If you receive more
section 457(b) plan, or a section 403(b) tax-
What Is a Qualified Lump-Sum sheltered annuity on behalf of the plan than one lump-sum distribution for the same
Distribution? participant. participant in 1 tax year, you must treat all
those distributions the same way. Combine
It is the distribution or payment in 1 tax year • A distribution from a qualified plan that them on a single Form 4972.
of a plan participant’s entire balance from all received a rollover after 2001 from another If you make an election as a beneficiary of a
of an employer’s qualified plans of one kind qualified plan on behalf of that plan deceased participant, it doesn’t affect any
(for example, pension, profit-sharing, or stock participant’s surviving spouse. election you can make for qualified lump-sum
bonus plans) in which the participant had • A corrective distribution of excess deferrals, distributions from your own plan. You can
funds. The participant’s entire balance excess contributions, excess aggregate also make an election as the beneficiary of
doesn’t include deductible voluntary contributions, or excess annual additions. more than one qualifying person.
employee contributions or certain forfeited • A lump-sum credit or payment under the Example. Your mother and father died and
amounts. The participant must have been alternative annuity option from the Federal each was born before January 2, 1936. Each
born before January 2, 1936. Civil Service Retirement System (or the had a qualified plan of which you are the
Distributions upon death of the plan Federal Employees’ Retirement System). beneficiary. You also received a qualified
participant. If you received a qualified How To Report the Distribution lump-sum distribution from your own plan and
distribution as a beneficiary after the you were born before January 2, 1936. You
participant’s death, the participant must have If you can use Form 4972, attach it to Form
been born before January 2, 1936, for you to 1040 or 1040-SR (individuals), Form 1040-NR can make an election for each of the
use this form for that distribution. (nonresident aliens), or Form 1041 (estates or distributions: one for yourself, one as your
Distributions to alternate payees. If you are trusts). The payer should have given you a mother’s beneficiary, and one as your father’s
the spouse or former spouse of a plan Form 1099-R or other statement that shows beneficiary. It doesn’t matter if the
participant who was born before January 2, the amounts needed to complete Form 4972. distributions all occur in the same year or in
1936, and you received a qualified lump-sum The following choices are available. different years. File a separate Form 4972 for
distribution as an alternate payee under a 20% capital gain election. If there is an each participant’s distribution.
qualified domestic relations order, you can amount in Form 1099-R, box 3, you can use An earlier election on Form 4972
use Form 4972 to figure the tax on the Form 4972, Part II, to apply a 20% tax rate to or Form 5544 for a distribution
distribution using the 20% capital gain the capital gain portion. See Capital Gain TIP before 1987 doesn’t prevent you
election, the 10-year tax option, or both. For Election , later. from making an election for a
details, see Pub. 575. 10-year tax option. You can use Part III to distribution after 1986 for the
figure your tax on the lump-sum distribution same participant, provided the participant was
Distributions That Don’t Qualify for the using the 10-year tax option whether or not under age 59½ at the time of the pre-1987
20% Capital Gain Election or the 10- you make the 20% capital gain election. distribution.
Year Tax Option Taxable amount. If Form 1099-R, box 2a, is
The following distributions aren’t qualified blank, you must figure the taxable amount to
lump-sum distributions and don’t qualify for complete Form 4972. For details, see Pub.
the 20% capital gain election or the 10-year 575.
tax option. Where to report. Report amounts from your
• The part of a distribution not rolled over if Form 1099-R either directly on your tax return
the distribution is partially rolled over to (Form 1040, 1040-SR, 1040-NR, or 1041) or
another qualified plan or an IRA. on Form 4972.
• Any distribution if an earlier election to use
either the 5- or 10-year tax option had been
made after 1986 for the same plan participant.

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Form 4972 (2023) Page 3
When To File Form 4972 Multiple recipients of a lump-sum Step 3. Use this step only if you elect to
You can file Form 4972 with either an original distribution. If you are filing for a trust that include NUA in your taxable income.
or amended return. For an amended return, shared the distribution only with other trusts, • If you aren’t making the capital gain
you must generally file within 3 years after the figure the tax on the total lump sum first. The election, add the amount from Form 1099-R,
date the original return was filed or within 2 trusts then share the tax in the same box 2a, to the amount in box 6. Divide the
years after the date the tax was paid, proportion that they shared the distribution. result by your percentage of distribution from
whichever is later, to use any part of Form If you shared in a lump-sum distribution Form 1099-R, box 9a. Enter the result on
4972. from a qualified retirement plan when not all Form 4972, line 8. On the dotted line next to
recipients were trusts (a percentage will be line 8, write “NUA” and the amount of NUA
Capital Gain Election shown in Form 1099-R, boxes 8 and/or 9a), included (Form 1099-R, box 6, divided by
If the distribution includes a capital gain figure your tax on Form 4972 as follows. your percentage of distribution in box 9a).
amount, you can (a) make the 20% capital Step 1. Complete Form 4972, Parts I and II. • If you are making the capital gain election,
gain election in Part II of Form 4972, or (b) If you make the 20% capital gain election in subtract the amount from Form 1099-R, box
treat the capital gain as ordinary income. Part II and also elect to include NUA in 3, from the amount in box 2a. Add to the
Only the taxable amount of distributions taxable income, complete the NUA Worksheet result the amount from line F of your NUA
resulting from pre-1974 participation qualifies below to determine the amount of NUA that Worksheet. Then, divide the total by your
for capital gain treatment. The capital gain qualifies for capital gain treatment. Then, skip percentage of distribution from Form 1099-R,
amount should be shown in Form 1099-R, Step 2 and go to Step 3. box 9a. Enter the result on Form 4972, line 8.
box 3. If there is a net unrealized appreciation Step 2. Use this step only if you don’t elect On the dotted line next to line 8, write “NUA”
(NUA) amount in Form 1099-R, box 6, part of to include NUA in your taxable income or if and the amount of NUA included (line F of
it will also qualify for capital gain treatment. you don’t have NUA. your NUA Worksheet divided by your
Use the NUA Worksheet on this page to figure percentage of distribution from Form 1099-R,
the capital gain part of NUA if you make the • If you aren’t making the capital gain
election to include NUA in your taxable election, divide the amount from Form box 9a).
income. 1099-R, box 2a, by your percentage of • Complete Form 4972, lines 9 and 10. Divide
distribution in box 9a. Enter this amount on the amount from Form 1099-R, box 8, by the
You can report the ordinary income portion Form 4972, line 8. percentage in box 8. Enter the result on Form
of the distribution on Form 1040, 1040-SR, or 4972, line 11.
1040-NR, line 5b; or Form 1041, line 8; or you • If you are making the capital gain election,
can figure the tax using the 10-year tax subtract the amount from Form 1099-R, box Step 4. Complete Form 4972 through line
option. The ordinary income portion is 3, from the amount in box 2a. Divide the result 28.
generally the amount from Form 1099-R, box by your percentage of distribution from Form Step 5. Complete the following worksheet
2a, minus the amount from box 3 of that form. 1099-R, box 9a. Enter the result on Form to figure the entry for Form 4972, line 29.
4972, line 8.
Net unrealized appreciation (NUA). A. Subtract line 28 from line 25 .
Normally, NUA in employer securities • Complete Form 4972, lines 9 and 10. Divide
received as part of a lump-sum distribution the amount from Form 1099-R, box 8, by the B. Enter your percentage of the
isn’t taxable until the securities are sold. percentage in box 8. Enter the result on Form distribution from box 9a . .
However, you can elect to include NUA in 4972, line 11. Then, skip Step 3 and go to C. Multiply line A by line B. Enter
taxable income in the year received. Step 4. here and on Form 4972, line 29.
The total amount to report as NUA should Also, write “MRD” on the dotted
be shown in Form 1099-R, box 6. Part of the line next to line 29 . . . .
amount in box 6 will qualify for capital gain
treatment if there is an amount in Form
1099-R, box 3. To figure the total amount NUA Worksheet (keep for your records)
subject to capital gain treatment including the
NUA, complete the NUA Worksheet on this A. Enter the amount from Form 1099-R, box 3 . . . . . . . . A.
page. B. Enter the amount from Form 1099-R, box 2a . . . . . . . . B.
C. Divide line A by line B and enter the result as a decimal (rounded to at
Specific Instructions least three places) . . . . . . . . . . . . . . . C. .
Name of recipient of distribution and
identifying number. At the top of Form 4972, D. Enter the amount from Form 1099-R, box 6 . . . . . . . . D.
fill in the name and identifying number of the E. Capital gain portion of NUA. Multiply line C by line D . . . . . E.
recipient of the distribution. F. Ordinary income portion of NUA. Subtract line E from line D . . . F.
If you received more than one qualified
distribution in 2023 for the same plan G. Total capital gain portion of distribution. Add lines A and E. Enter here
participant, add them and figure the tax on and on Form 4972, line 6. On the dotted line next to line 6, write
the total amount. If you received qualified “NUA” and the amount from line E above . . . . . . . . .
G.
distributions in 2023 for more than one
participant, file a separate Form 4972 for the Death Benefit Worksheet (keep for your records)
distributions of each participant.
If you and your spouse are filing a joint A. Enter the amount from Form 1099-R, box 3, or, if you are including
return and each has received a lump-sum NUA in taxable income, the amount from line G of the NUA Worksheet A.
distribution, complete and file a separate
Form 4972 for each spouse, combine the tax, B. Enter the amount from Form 1099-R, box 2a, plus, if you are including
and include the combined tax in the total on NUA in taxable income, the amount from Form 1099-R, box 6 . . . B.
Form 1040 or 1040-SR, line 16. Be sure to C. Divide line A by line B and enter the result as a decimal (rounded to at
check box 2on Form 1040 or 1040-SR,
line 16. least three places) . . . . . . . . . . . . . . . . C. .
D. Enter your share of the death benefit exclusion* . . . . . . . D.
E. Death benefit exclusion allocated to capital gain. Multiply line D by
line C . . . . . . . . . . . . . . . . . . . E.
F. Subtract line E from line A. Enter here and on Form 4972, line 6 . . F.
*Applies only for participants who died before August 21, 1996. If there are multiple recipients of the distribution,
the allowable death benefit exclusion must be allocated among the recipients in the same proportion that they
share the distribution.

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Form 4972 (2023) Page 4

Part II If you didn’t make the 20% capital gain Tax Rate Schedule
See Capital Gain Election , earlier, before election and didn’t elect to include NUA in If the amount on Enter on line
completing Part II. taxable income, enter the amount from Form line 23 or 26 is: 24 or 27:
Line 6. Leave this line blank if your 1099-R, box 2a. If you didn’t make the 20% Of the
distribution doesn’t include a capital gain capital gain election but did elect to include But not amount
amount or you aren’t making the 20% capital NUA in your taxable income, add the amount Over— over— over—
gain election, and go to Part III. from Form 1099-R, box 2a, to the amount $ 0 $ 1,190 - - - - - 11% $ 0
from Form 1099-R, box 6. Enter the total on
Generally, enter on line 6 the amount from line 8. On the dotted line next to line 8, write 1,190 2,270 $130.90 + 12% 1,190
Form 1099-R, box 3. However, if you elect to “NUA” and the amount from Form 1099-R, 2,270 4,530 260.50 + 14% 2,270
include NUA in your taxable income, use the box 6. 4,530 6,690 576.90 + 15% 4,530
NUA Worksheet, earlier, to figure the amount
to enter on line 6. If you are taking a death Community property laws don’t 6,690 9,170 900.90 + 16% 6,690
benefit exclusion (see Line 9 below for the apply in figuring tax on the amount
definition), use the Death Benefit Worksheet, ▲! you report on line 8. 9,170 11,440 1,297.70 + 18% 9,170
earlier, to figure the amount to enter on line 6. CAUTION 11,440 13,710 1,706.30 + 20% 11,440
The remaining allowable death benefit Line 9. If you received the distribution 13,710 17,160 2,160.30 + 23% 13,710
exclusion should be entered on line 9 if you because of the plan participant’s death and 17,160 22,880 2,953.80 + 26% 17,160
choose the 10-year tax option. the participant died before August 21, 1996,
If any federal estate tax was paid on the you may be able to exclude up to $5,000 of 22,880 28,600 4,441.00 + 30% 22,880
lump-sum distribution, you must decrease the the lump sum from your gross income. This 28,600 34,320 6,157.00 + 34% 28,600
capital gain amount by the amount of estate exclusion applies to the beneficiaries or 34,320 42,300 8,101.80 + 38% 34,320
tax applicable to it. To figure this amount, you estates of common-law employees, self-
must complete the Death Benefit Worksheet, employed individuals, and shareholder- 42,300 57,190 11,134.20 + 42% 42,300
earlier, through line C, even if you don’t take employees who owned more than 2% of the 57,190 85,790 17,388.00 + 48% 57,190
the death benefit exclusion. Multiply the total stock of an S corporation. 85,790 - - - - - 31,116.00 + 50% 85,790
federal estate tax paid on the lump-sum Enter the allowable death benefit exclusion
distribution (get this amount from the on line 9. If you made the 20% capital gain Paperwork Reduction Act Notice.We ask
administrator of the deceased’s estate) by the election, enter the amount from line D of the for the information on this form to carry out
decimal on line C of the Death Benefit Death Benefit Worksheet minus the amount the Internal Revenue laws of the United
Worksheet. The result is the portion of the from line E of that worksheet. States. You are required to give us the
federal estate tax applicable to the capital Multiple recipients. If there are multiple information. We need it to ensure that you are
gain amount. Then, use that result to reduce recipients of the distribution not all of whom complying with these laws and to allow us to
the amount in Form 1099-R, box 3, if you are trusts, and you didn’t complete Part II, figure and collect the right amount of tax.
don’t take the death benefit exclusion, or enter the full allowable death benefit exclusion You aren’t required to provide the
reduce line F of the Death Benefit Worksheet on line 9. Don’t allocate the exclusion among information requested on a form that is
if you do. Enter the remaining capital gain on the recipients; the computation under Multiple subject to the Paperwork Reduction Act
line 6. If you elected to include NUA in taxable recipients of a lump-sum distribution , earlier, unless the form displays a valid OMB control
income and you didn’t take the death benefit effectively allocates the exclusion. number. Books or records relating to a form
exclusion, subtract the portion of federal If you completed Part II, multiply the full or its instructions must be retained as long as
estate tax applicable to the capital gain allowable death benefit exclusion (don’t their contents may become material in the
amount from the amount on line G of the NUA allocate among the recipients) by the administration of any Internal Revenue law.
Worksheet. Enter the result on line 6. Enter percentage on line C of the Death Benefit Generally, tax returns and return information
the remainder of the federal estate tax on line Worksheet. Subtract the result from the full are confidential, as required by section 6103.
18. allowable death benefit exclusion. Enter the The time needed to complete this form will
If you take the death benefit result on line 9. vary depending on individual circumstances.
exclusion and federal estate tax Line 18. A beneficiary who receives a lump- The estimated burden for individual taxpayers
▲! was paid on the capital gain sum distribution because of a plan filing this form is approved under OMB control
CAUTION amount, the capital gain amount participant’s death must reduce the taxable number 1545-0074 and is included in the
must be reduced by both the procedures part of the distribution by any federal estate estimates shown in the instructions for their
discussed above to figure the correct entry for tax paid on the lump-sum distribution (get this individual income tax return. The estimated
line 6. amount from the administrator of the burden for all other taxpayers who file this
Part III deceased’s estate). Do this by entering on line form is shown below.
Multiple recipients, see Multiple recipients of a 18 the federal estate tax attributable to the Recordkeeping . . . . . . 19 min.
lump-sum distribution , earlier. lump-sum distribution. Also, see Line 6 above
if you made a capital gain election. Learning about the law
Line 8. If Form 1099-R, box 2a, is blank, you Lines 24 and 27. Use the following Tax Rate or the form . . . . . . 1 hr., 36 min.
must first figure the taxable amount. For Schedule to complete lines 24 and 27. Preparing the form . . . . 2 hr., 7 min.
details on how to do this, see Pub. 575. Copying, assembling, and
If you made the 20% capital gain election, Line 29. Multiple recipients, see Multiple
enter only the ordinary income portion of the recipients of a lump-sum distribution, earlier. sending the form to the IRS . . . 20 min.
If you have comments concerning the
distribution on this line. The ordinary income accuracy of these time estimates or
portion is the amount from Form 1099-R, box suggestions for making this form simpler, we
2a, minus the amount from box 3 of that form. would be happy to hear from you. See the
Add the amount from line F of the NUA instructions for the tax return with which this
Worksheet if you included NUA capital gain in form is filed.
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.

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