4972-K: Kentucky Tax on Lump Sum Distributions (Revision 2024-10)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 4972-K calculates tax on lump-sum distributions from qualified plans of participants born before January 2, 1936. It figures excludable income, the capital gain portion, and tax under the 10-year option, and is enclosed with Form 740, Form 740-NP, or Form 741.
Who files this form
Form 4972-K covers Kentucky tax on lump-sum distributions from qualified plans of participants born before January 2, 1936.
An individual who qualifies to file federal Form 4972 qualifies to file Kentucky Form 4972-K. Part I asks whether you are filing federal Form 4972. If you answer “No,” do not complete the rest of Form 4972-K. Instead, see the instructions for Schedule M, line 9, or Form 740-NP, page 4, line 10(b).
What you'll need
- The distribution recipient’s name and Social Security number or federal identification number.
- Federal Form 4972 and the federal instructions referenced by the Kentucky form.
- A completed Schedule P. Part II uses the amount from Schedule P, line 3.
- Form 1099-R. The calculations use Box 2(a), Box 3, and, if applicable, Box 8.
- Form 740, Form 740-NP, or Form 741, with which you must enclose Form 4972-K.
How to file
Enclose Form 4972-K with Form 740, Form 740-NP, or Form 741.
Report the lump-sum distribution tax from line 32 on the applicable return:
- Form 740, line 13.
- Form 741, line 17(b).
- Form 740-NP, page 1, line 14, included in the tax amount on that line.
The supplied form does not give a mailing address or e-file instructions.
Common mistakes
- Do not continue past Part I if you answer “No” to filing federal Form 4972.
- Complete Schedule P before completing Part II.
- Complete Part III only if you chose the 20% federal capital gain election.
- If line 15 is $70,000 or more, skip lines 16 through 19 and enter the line 15 amount on line 20.
- Do not enter more than $10,000 on line 16.
- If line 14 is blank, skip lines 23 through 25. Also skip lines 29 through 31 and carry line 28 to line 32.
- For the federal estate tax amount on line 21, do not also deduct on Form 740, Form 740-NP, or Form 741 the amount attributable to the ordinary income entered on line 9.
Questions people ask
When do I complete Part III?
Complete Part III only if you chose the 20% federal capital gain election. Start with the capital gain amount from Form 1099-R, Box 3.
Which part is used to choose the 10-year option?
Complete Part IV to choose the 10-year option.
What amount goes on line 9?
Enter Form 1099-R, Box 2(a), minus Box 3. If you did not complete Part III, enter the taxable amount from Box 2(a) without subtracting Box 3. The form also directs you to the federal instructions.
How does Part II calculate the excludable amount?
Line 3 subtracts Schedule P, line 3, from $31,110. Line 4 adds Form 4972-K, lines 8(a) and 9. Line 5 takes the lesser of those two results. Lines 6 and 7 allocate that amount between capital gain distributions and regular lump-sum distributions.