4972-K: Kentucky Tax on Lump Sum Distributions (Revision 2025-10)
Kentucky · Kentucky DOR · Used for tax years 2025
Form 4972-K calculates Kentucky tax on lump-sum distributions from qualified plans of participants born before January 2, 1936. It figures excludable income, capital gain amounts, and tax under the 10-year option, and is enclosed with Form 740, Form 740-NP, or Form 741.
Who files this form
For tax year 2025, Form 4972-K covers 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. Line 1 asks whether you are filing federal Form 4972:
- If yes, you qualify to file Form 4972-K.
- If no, do not complete the rest of the form. See the instructions for Schedule M, line 9, or Form 740-NP, page 4, line 10(b).
What you'll need
Have these forms and details available:
- Federal Form 4972 and its instructions. The Kentucky form uses federal filing qualifications and refers you to the federal instructions.
- A completed Schedule P. You need the amount from line 3 before completing Part II.
- Form 1099-R, including Box 2(a), Box 3, and Box 8 if an annuity applies.
- Your Kentucky return: Form 740, Form 740-NP, or Form 741, and the applicable Schedule M entries.
- The distribution recipient's name and Social Security number or federal identification number.
If applicable, you will also need the amounts for the death benefit exclusion and federal estate tax attributable to the lump-sum distribution.
How to file
Enclose Form 4972-K with Form 740, Form 740-NP, or Form 741. The form does not provide a mailing address or e-filing instructions.
Report the tax from line 32 on your Kentucky return:
- Form 740: line 13.
- Form 741: line 17(b).
- Form 740-NP: include it in the amount on page 1, line 14.
Common mistakes
- Do not continue past line 1 if you are not 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. After completing line 28, also skip lines 29 through 31 and carry the line 28 amount to line 32.
- For line 21, do not also deduct on Form 740, Form 740-NP, or Form 741 the federal estate tax amount attributable to the ordinary income entered on line 9.
Questions people ask
Can I complete Form 4972-K if I am not filing federal Form 4972?
No. If you answer no on line 1, the form tells you not to complete the rest. It refers you to the instructions for Schedule M, line 9, or Form 740-NP, page 4, line 10(b).
When do I complete Part III?
Complete Part III only if you chose the 20% federal capital gain election. Enter the capital gain part from Form 1099-R, Box 3, on line 8(a).
How do I choose the 10-year option?
Complete Part IV to choose the 10-year option.
What amount goes on line 9 if I did not complete Part III?
Enter the taxable amount from Form 1099-R, Box 2(a). The form also directs you to the federal instructions.
Where can I find guidance for multiple recipients?
The note on line 32 directs multiple recipients to the federal instructions.