N-152: Tax on Lump-Sum Distributions (2024)

Who files this form

Form N-152 is used to choose special tax treatment for a qualifying lump-sum distribution from a qualified retirement plan. Complete Part I to check whether you qualify.

The form says you cannot use it if you rolled over any part of the distribution or if the distribution was a pension for past services.

To qualify:

• The participant must have been born before 1936 or been at least age 59 on the distribution date. If deceased, the participant must also have been at least age 50 at death.
• The distribution must be from a qualified pension, profit-sharing, or stock bonus plan.
• The participant must have been in the plan for at least five years before the distribution year, unless you received the distribution as the beneficiary of a deceased participant.
• Unless you received the distribution as a beneficiary of a deceased participant, at least one of these must apply: the participant was an employee who quit, retired, was laid off, or was fired; was self-employed or an owner-employee who became permanently and totally disabled before the distribution; or was at least age 59 when the distribution occurred.

You cannot use this form for a 2024 distribution from your own plan if you used Form N-152 after 1986 for a previous distribution from your own plan. A beneficiary cannot use it if they previously used Form N-152 for a distribution received after 1986 for the same deceased participant.

What you'll need

Have these forms and details available, as applicable:

• The recipient's name and Social Security number or FEIN.
• Federal Form 1099-R, including Box 3 for the capital gain amount and Box 8 for the current actuarial value of an annuity.
• Schedule J (Form N-11/N-15/N-40), completed through line 21. Form N-152 uses amounts from Schedule J, lines 16 and 20.
• Your Form N-11, N-15, or N-40, including taxable income and filing status for the capital gain calculation.
• Details needed for Part I, such as the participant's birth date, plan participation, reason for the distribution, any rollover, and previous use of Form N-152.
• If applicable, the federal estate tax attributable to the lump-sum distribution entered on line 14.

How to file

1. Complete Part I to check eligibility.
2. If you qualify, complete Schedule J (Form N-11/N-15/N-40) through line 21.
3. Complete Part II for the capital gain election, Part III for the 10-year tax option, or both. Part II is available only if the participant was born before 1936.
4. Add lines 13 and 37 on line 38. Include that tax on Form N-11, line 27; Form N-15, line 44; or Form N-40, Schedule G, line 1, whichever applies.
5. Attach Form N-152 to Form N-11, N-15, or N-40.

The supplied form does not give a mailing address or e-filing directions.

Common mistakes

• Ignoring the eligibility checks. Follow the “do not use this form” directions in Part I.
• Completing Part II for a participant born in 1936 or later. The form specifically prohibits this.
• Deducting the same estate tax on the main return. Do not deduct the amount entered on line 26 on Form N-11, N-15, or N-40.
• Missing the line 20 shortcut. If line 20 is $70,000 or more, skip lines 21 through 24 and enter the line 20 amount on line 25.
• Using the wrong tax schedule for Part III. Lines 32 and 35 require the Tax Rate Schedule for 10-Year Tax Option printed on Form N-152.
• Forgetting the attachment. Attach Form N-152 to Form N-11, N-15, or N-40.

Questions people ask

Can I use Form N-152 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.

Can I choose both the capital gain election and the 10-year tax option?

Yes, if you qualify. The form allows Part II, Part III, or both. Do not complete Part II unless the participant was born before 1936.

Does a deceased participant's beneficiary need to meet the five-year participation test?

Part I does not disqualify you for failing that test if the distribution was paid to you as the beneficiary of a participant who died. The other applicable eligibility checks still apply.

Where do I report the tax calculated on Form N-152?

Include the amount from line 38 on Form N-11, line 27; Form N-15, line 44; or Form N-40, Schedule G, line 1, whichever applies.

Official sources

• https://files.hawaii.gov/tax/forms/2024/n152_i.pdf