N-152: Tax on Lump-Sum Distributions (2025)

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 can use it for a 2025 distribution.

You must meet these conditions:

• You did not roll over any part of the distribution, and the distribution was not a pension for past services.
• The plan participant was born before 1936 or was at least age 59 on the distribution date. If the participant died, they must also have been at least age 50 at death.
• The distribution came from a qualified pension, profit-sharing, or stock bonus plan.
• The participant was in the plan for at least five years before the distribution year, or you received the distribution as a beneficiary of a participant who died.

Unless you received the distribution as a beneficiary of a deceased participant, at least one of these must also apply:

• The participant was an employee who received the distribution because they quit, retired, were laid off, or were fired.
• The participant was self-employed or an owner-employee who became permanently and totally disabled before the distribution.
• The participant was age 59 or older when the distribution was made.

You cannot use this form for a 2025 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 for the parts you complete:

• The distribution recipient’s name and Social Security number or FEIN.
• Information about the participant and distribution needed to answer Part I, including age, plan participation, any rollover, and previous use of Form N-152.
• Schedule J (Form N-11/N-15/N-40), completed through line 21 if you qualify to use Form N-152.
• Federal Form 1099-R. Part II uses the capital gain amount in Box 3. Part III uses the current actuarial value of an annuity in Box 8, if applicable.
• Your Form N-11, N-15, or N-40. Part II uses taxable income from the applicable return.
• The federal estate tax amount attributable to the lump-sum distribution entered on line 14, if applicable.

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 the result 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 Part I stop instructions. Do not use the form if your answers make you ineligible, including if you rolled over any part of the distribution.
• Using Part II when the participant was not born before 1936. The form specifically prohibits this.
• Deducting the same estate tax amount on your 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.
• Completing unnecessary annuity calculations. If line 18 is blank, skip lines 28 through 30. If there is no entry on line 18, also skip lines 34 through 36 and enter the line 33 amount on line 37.

Questions people ask

Can I use Form N-152 if I rolled over part of the distribution?

No. Part I says not to use the 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. You may complete Part II only if the participant was born before 1936.

Can a beneficiary use this form?

A beneficiary of a deceased plan participant may qualify. Part I includes specific eligibility questions for beneficiaries, including whether they previously used Form N-152 for a distribution received after 1986 for that participant.

Which tax schedule do I use for the 10-year tax option?

Use the Tax Rate Schedule for 10-Year Tax Option printed on page 2 to calculate the tax on lines 32 and 35.

Where do I report the final tax?

Report 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. Attach Form N-152 to that return.

Official sources

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