This article will help you generate Form 4972, tax on lump-sum distributions from qualified plans of participants born before January 2, 1936. This form is usually required when:
- The 1099-R plan participant was born before 1/2/1936, and
- Your client gets a payment of the plan participant's entire balance.
See the IRS Instructions for Form 4792 for all of the limitations on what's considered a qualified distribution for this form.
Follow these steps to generate Form 4972 in the program:
- Go to Screen 13.1, Pensions, IRAs (1099-R).
- In the Form 1099-R section, make sure you've entered boxes 1-11 accurately.
- Scroll down to the Form 4972 section.
- Check the box for Lump-sum distribution (4972).
- Enter any other information that applies.
Lacerte will use you entries to calculate Form 4972 and choose the election or option that results in the lowest tax.
