Form 4972 K PDF Details

When individuals receive lump-sum distributions from qualified retirement plans, understanding the tax implications becomes crucial for effective financial planning. In Kentucky, the Form 4972-K, also known as the Kentucky 4972-K Tax on Lump-Sum Distributions, serves this very purpose. This form is designed as a companion to the federal Form 4972 and is to be used exclusively for reporting lump-sum distributions for tax purposes. It must be attached to either Form 740, Form 740-NP, or Form 741, depending on the filer's circumstances. The form intricately details the process of calculating taxes on lump-sum distributions, allowing for calculations related to excludable amounts, the special 20% federal capital gain election, and even provisions for five-year and ten-year averaging options, depending on the taxpayer’s eligibility. It outlines specific qualifications that mirror those at the federal level, ensuring individuals who file federal Form 4972 are also qualified to utilize Form 4972-K. This connection between federal and state tax requirements emphasizes the necessity for thorough attention to both levels of tax obligations. Completing this form accurately is essential for Kentucky residents seeking to manage the tax impact of their retirement plan distributions effectively, thereby optimizing their financial outcomes during retirement.

QuestionAnswer
Form NameForm 4972 K
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other names42a740s21 form 4972 k instructions

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Kentucky

 

 

4972-K

 

 

 

 

Tax on Lump-Sum Distributions

 

42A740-S21

 

 

 

 

‰(Use this form only for lum p-sum distributions from qualified retirem ent plans.)

1999

Com m onw ealth of Kentucky

 

 

 

REVENUE CABINET

Attach to Form 740, Form 740-NP or Form 741.

‰See federal instructions.

 

Enter nam e of recipient of distribution.

 

Social Security or

 

 

federal identification num ber

PART I—Qualifications

 

 

 

1. An individual w ho qualifies to file federal Form 4972 qualifies to file Form 4972-K.

Yes No

Are you filing federal Form 4972?

 

If "yes," you are qualified to file Form 4972-K. If "no," do not complete the rest of this form. See instructions for

Form 740, page 2, line 44 (Form 740-NP, page 2, line 42(b)).

 

 

PART II—Excludable Lump-Sum Income—Complete this part after you have completed Schedule P.

2.

Enter the am ount from Schedule P, line 3

2

3.

Subtract line 2 from $35,700

3

4.

Enter the am ount from line 8(a) plus line 9

4

5.

Enter the lesser of line 3 or line 4

5

6.

Am ount of line 5 to be applied to capital gain distributions. enter here and on line 8(b)

6

7.

Am ount of line 5 to be applied to regular lum p-sum distributions. Subtract line 6 from line 5. Enter here

 

 

and on line 12

7

PART III—Complete this part only if you chose the 20% federal capital gain election.

8.

(a)

Capital gain part from Box 3, Form 1099-R

 

 

 

8(a)

 

 

 

(b)

Enter the exclusion from line 6

 

 

 

8(b)

 

 

 

(c) Subtract line 8(b) from line 8(a). Enter here and include on Schedule M , line 4

 

 

 

 

 

 

 

(Form 740-NP, page 2, line 45, Colum n B or Form 741, line 3)

 

 

8(c)

 

 

 

 

If you chose the five-year averaging m ethod for federal purposes, com plete Parts IV and V.

 

 

 

 

If you chose the 10-year averaging m ethod for federal purposes, com plete Parts IV and VI.

 

 

 

 

 

 

 

 

 

 

 

PART IV

 

 

 

 

 

 

 

 

9.

Ordinary incom e from Form 1099-R, Box 2a m inus Box 3. If you did not com plete Part III, enter the

 

 

 

 

am ount from Box 2a of Form 1099-R (taxable am ount) (see federal instructions)

 

 

9

 

 

10.

Death benefit exclusion for a beneficiary of a plan participant w ho died before August 21, 1996

10

 

 

11.

Subtract line 10 from line 9 (total federal taxable am ount)

 

 

 

11

 

 

12.

Enter the exclusion from line 7

 

 

 

12

 

 

13

Subtract line 12 from line 11 (total Kentucky taxable am ount)

 

 

 

13

 

 

14.

Current actuarial value of annuity, if applicable (from Form 1099-R, Box 8)

 

 

14

 

 

15.

Add lines 13 and 14 (adjusted total taxable am ount). If this am ount is $70,000 or m ore, skip lines 16

 

 

 

 

through 19, and enter this am ount on line 20

 

 

 

15

 

 

16.

M ultiply line 15 by 50% (.50), but do not enter m ore than $10,000

16

 

 

 

 

17.

Subtract $20,000 from line 15. Enter difference. If line 15

 

 

 

 

 

 

 

 

is $20,000 or less, enter zero

17

 

 

 

 

 

 

18.

M ultiply line 17 by 20% (.20)

 

18

 

 

 

 

19.

Subtract line 18 from line 16 (m inim um distribution allow ance)

 

 

 

19

 

 

20.

Subtract line 19 from line 15

 

 

 

20

 

 

21.

Federal estate tax attributable to lum p-sum distribution. Do not deduct on Form 740, Form 740-NP or

 

 

 

 

740S219913

 

 

 

.........

21

 

 

 

Form 741 the am ount attributable to the ordinary incom e entered on line 9 (see federal instructions)

 

 

22.

Subtract line 21 from line 20

 

 

 

22

 

 

 

 

If line 4 is blank, skip lines 23 through 25 and go to Part V or VI.

 

 

 

 

 

23.

Divide line 14 by line 15 and enter the result as a decim al (round to four places)

 

 

23

 

 

24.

M ultiply line by the decim al am ount on line 23

 

 

 

24

 

 

25.

Subtract line 24 from line 14

 

 

 

25

 

 

Form 4972-K (1999)

Page 2

PART V—Five-Year Averaging Option

 

26.

M ultiply line 22 by 20% (.20)

26

27.

Tax on am ount on line 26. Use Tax Rate Schedule below

27

28.

M ultiply line 27 by 5. If no entry on line 14, skip lines 29 through 31, and

 

 

enter this am ount on line 32

28

29.

M ultiply line 25 by 20% (.20)

29

30.

Tax on am ount on line 29. Use Tax Rate Schedule below

30

31.

M ultiply line 30 by 5

31

32.Tax on lump-sum distribution. Subtract line 31 from line 28. Enter here and on Schedule TC, line 3 or Form 741, line 15(b). Form 740-NP, include tax in the am ount on Form 740-NP, line 10.

(m ultiple recipients, see federal instructions)

32

PART VI—10-Year Averaging Option—Complete Part VI only if the participant w as born before 1936.

33.

M ultiply line 22 by 10% (.10)

33

34.

Tax on am ount on line 33. Use Tax Rate Schedule below

34

35.

M ultiply line 34 by 10. If no entry on line 14, skip lines 36 through 38, and

 

 

enter this am ount on line 39

35

36.

M ultiply line 25 by 10% (.10)

36

37.

Tax on am ount on line 36. Use Tax Rate Schedule below

37

38.

M ultiply line 37 by 10

38

39.Tax on lump-sum distribution. Subtract line 38 from line 35. Enter here and on Schedule TC, line 3 or Form 741, line 15(b). Form 740-NP, include tax in the am ount on Form 740-NP, line 10.

(m ultiple recipients, see federal instructions)

39

TAX RATE SCHEDULE

If taxable am ount is:

Tax is:

$3,000 or less

2% of taxable am ount

over $3,000 but not over $4,000

$60 plus 3% of am ount over $3,000

over $4,000 but not over $5,000

$90 plus 4% of am ount over $4,000

over $5,000 but not over $8,000

$130 plus 5% of am ount over $5,000

over $8,000

$280 plus 6% of am ount over $8,000

740S219923

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