AR1000TD: Lump Sum Distribution Averaging (2025)
Arkansas · Arkansas DFA · Used for tax years 2025
Form AR1000TD is an Arkansas individual income tax form for lump-sum distribution averaging. It checks whether you qualify for 10-year averaging and calculates the tax on a distribution using amounts from Form 1099-R. Attach it to Form AR1000F or AR1000NR.
Who files this form
For tax year 2025, Form AR1000TD is used to calculate tax using 10-year averaging for a qualifying lump-sum distribution. Complete Part I to check whether you qualify before completing Part II.
To use the form:
- The distribution must be the plan participant’s entire balance from all of an employer’s qualified plans of one kind: pension, profit-sharing, or stock bonus.
- You must not have rolled over any part of the distribution.
- You must either be a beneficiary of a plan participant born before January 2, 1936, or be the participant, born before that date, who participated in the plan for at least five years before the distribution year.
- You must not have used AR1000TD for a previous distribution from your own plan. If you are receiving the distribution as a beneficiary of a deceased participant, AR1000TD must not have been used for a previous distribution received for that participant.
What you'll need
Have these forms and details available:
- Form 1099-R: You will use box 2a for income and box 8 for the current actuarial value of an annuity.
- Form AR1000F or AR1000NR: Attach AR1000TD to this return and transfer the calculated tax to line 31.
- The tax rate schedule on the reverse side of AR1000TD: Part II directs you to use it for lines 10 and 16.
- Your name and Social Security number: Enter these on AR1000TD.
You will also need the information requested in Part I, including the participant’s birth date, plan participation history, any rollover, and any previous use of AR1000TD.
How to file
- Complete Part I to determine whether you qualify for 10-year averaging.
- If you qualify, complete Part II using Form 1099-R and the tax rate schedule on the reverse side.
- Enter the amount from AR1000TD line 18 on line 31 of Form AR1000F or AR1000NR.
- Attach AR1000TD to your AR1000F or AR1000NR.
The supplied form text does not give a mailing address or e-filing instructions.
Common mistakes
- Skipping the eligibility check: Complete Part I before Part II. Follow any direction that says not to use the form.
- Putting box 2a income on the wrong form: Enter it on AR1000TD line 1 instead of on AR1000F or AR1000NR.
- Missing the $70,000 rule: If line 3 is $70,000 or more, skip lines 4 through 7 and enter the line 3 amount on line 8.
- Exceeding the line 4 limit: Do not enter more than $10,000 on line 4.
- Missing the zero-annuity shortcut: If line 2 is zero, skip lines 12 through 17 and enter the line 11 amount on line 18.
- Using the wrong precision on line 12: Carry the result to four places to the right of the decimal.
Questions people ask
Can I use AR1000TD if I rolled over part of the distribution?
No. Part I says not to use this form if you rolled over any part of the distribution.
What if there is no annuity amount?
Enter zero on line 2. If line 2 is zero, enter the line 11 amount on line 18 and skip lines 12 through 17.
Where do I find the tax rates for the calculation?
Lines 10 and 16 direct you to the tax rate schedule on the reverse side of the form.
Where does the final tax amount go?
Enter the amount from AR1000TD line 18 on line 31 of Form AR1000F or AR1000NR. Attach AR1000TD to that return.