2016 irs form 4972-2025

Show details

4.4 out of 5

677 votes

Form 4972 is used to calculate the tax on lump-sum distributions from qualified plans for participants born before January 2, 1936. It allows taxpayers to apply special tax options, such as the 20% capital gain election and the 10-year tax option, which may result in a lower tax liability compared to reporting the distribution as ordinary income. The form includes instructions for determining eligibility, reporting requirements, and specific calculations related to capital gains and taxable amounts.

Here's how it works

01. Edit your dl 4972 online

Type text, add images, blackout confidential details, add comments, highlights and more.

02. Sign it in a few clicks

Draw your signature, type it, upload its image, or use your mobile device as a signature pad.

03. Share your form with others

Send form 4972 via email, link, or fax. You can also download it, export it or print it out.

The best way to edit 2016 irs form 4972 online

Ease of Setup

DocHub User Ratings on G2

Ease of Use

DocHub User Ratings on G2

With DocHub, making changes to your paperwork takes only some simple clicks. Make these fast steps to edit the PDF 2016 irs form 4972 online free of charge:

Register and log in to your account. Log in to the editor using your credentials or click Create free account to evaluate the tool’s capabilities.
Add the 2016 irs form 4972 for redacting. Click on the New Document button above, then drag and drop the file to the upload area, import it from the cloud, or using a link.
Modify your file. Make any changes required: insert text and pictures to your 2016 irs form 4972, highlight information that matters, remove sections of content and substitute them with new ones, and add symbols, checkmarks, and fields for filling out.
Complete redacting the form. Save the updated document on your device, export it to the cloud, print it right from the editor, or share it with all the people involved.

Our editor is super intuitive and efficient. Try it now!

See more 2016 irs form 4972 versions

We've got more versions of the 2016 irs form 4972 form. Select the right 2016 irs form 4972 version from the list and start editing it straight away!

Versions	Form popularity	Fillable & printable
2023	4 Satisfied (50 Votes)
2022	4.5 Satisfied (53 Votes)
2021	4.9 Satisfied (37 Votes)
2020	4.3 Satisfied (193 Votes)
2019	4.2 Satisfied (36 Votes)
2018	4.3 Satisfied (60 Votes)
2017	4.4 Satisfied (242 Votes)
2016	4.4 Satisfied (677 Votes)
2015	4 Satisfied (30 Votes)
2014	4.2 Satisfied (25 Votes)
2011	4.3 Satisfied (66 Votes)

be ready to get more

Complete this form in 5 minutes or less

Get form

Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is Section 72 T of the Internal Revenue Code?

Rule 72(t) refers to code 72(t), section 2, which specifies exceptions to the early-withdrawal tax. These exceptions allow investors to withdraw funds from their retirement accounts before age 59, as long as certain qualifications are met.

How much tax will be taken for a lump-sum payout?

If you take a lump-sum distribution, even using Form 4972, the retirement plan administrator typically withholds 20% of your withdrawal and sends it to the IRS on your behalf. If your ultimate tax liability is lower than 20%, you can claim that part back when you file your taxes.

What is US Federal tax Form 4972?

If you were older than 59-1/2 before you received a lump sum from a qualified employee retirement plan, you may have some other options that can reduce your tax bill. 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.

What are the tax consequences of a lump-sum pension distribution?

For this reason, your employer is required to withhold 20 percent of the payout. In addition to paying income tax, you will owe an additional 10 percent penalty tax, if you take a lump-sum payout before age 59.

What is the IRS Code 4972?

In the case of any qualified employer plan, there is hereby imposed a tax equal to 10 percent of the nondeductible contributions under the plan (determined as of the close of the taxable year of the employer). The tax imposed by this section shall be paid by the employer making the contributions.

irs 4972

2016 irs form 4972 pdf 2016 irs form 4972 instructions Form 4972 instructions 2016 irs form 4972 turbotax IRS Form 8814 2016 irs form 4972 instructions pdf 2016 irs form 4972 download Who must file Form 4972

What is the IRS form 4972 used for?

If you are the spouse or former spouse of a plan participant who was born before 1936 and you received a qualifying lump-sum distribution as an alternate payee under a qualified domestic relations order, you can use Form 4972 to figure the tax on that income.