Updated October 18, 2026. Quick answer: Part I of Form 4972 is a short set of yes or no questions that tells you whether you can use the form at all. It covers whether the distribution was a plan participant’s entire balance, whether any of it was rolled over, whether you or the participant meet the birth-date and plan-time tests, and whether Form 4972 was used before. It produces no dollar amount; the answers decide whether you go on to Part II and Part III.
What this part is for
The Part I heading reads “Complete this part to see if you can use Form 4972”. It is the gate for the whole form, described on the Form 4972 page. The instructions say what a qualified distribution is: “It is the distribution or payment in 1 tax year of a plan participant’s entire balance from all of an employer’s qualified plans of one kind”. They add “The participant’s entire balance doesn’t include deductible voluntary employee contributions or certain forfeited amounts.” “The participant must have been born before January 2, 1936.”
For a beneficiary the instructions say “If you received a qualified distribution as a beneficiary after the participant’s death, the participant must have been born before January 2, 1936, for you to use this form for that distribution.” The payer’s Form 1099-R is where the details come from; see Form 1099-R boxes explained.
Spouses and former spouses are addressed separately under the instructions’ alternate payee paragraph: “If you are the spouse or former spouse of a plan participant who was born before January 2, 1936, and you received a qualified” lump-sum distribution “as an alternate payee under a qualified domestic relations order, you can use Form 4972 to figure the tax on the distribution using the 20% capital gain election”. “For details, see Pub. 575.” Line 3 and line 4 are the two ways in: line 3 asks about a beneficiary, line 4 asks about the participant who received the distribution himself or herself.
The lines, one by one
| Line | What the form says |
|---|---|
| Line 1 | “Was this a distribution of a plan participant’s entire balance (excluding deductible voluntary employee contributions and certain forfeited amounts) from all of an employer’s qualified plans of one kind”. The form’s consequence for a No answer is to “don’t use this form”. |
| Line 2 | “Did you roll over any part of the distribution?” For a Yes answer the form says to “don’t use this form”. |
| Line 3 | “Was this distribution paid to you as a beneficiary of a plan participant who was born before January 2, 1936?” |
| Line 4 | “Were you (a) a plan participant who received this distribution, (b) born before January 2, 1936, and (c) a participant in the plan for at least 5 years before the year of the distribution?” |
| Between lines 4 and 5 | “If you answered” No “to both questions 3 and 4, don’t use this form.” |
| Line 5a | “Did you use Form 4972 after 1986 for a previous distribution from your own plan?” For a Yes answer the form continues: “don’t use this form for a 2025 distribution from your own plan”. |
| Line 5b | “If you are receiving this distribution as a beneficiary of a plan participant who died, did you use Form 4972 for a previous distribution received as a beneficiary of that participant after 1986?” For a Yes answer: “don’t use this form for this distribution”. |
The word No or Yes in the table is the answer you would give; the quoted words are the form’s own.
Where the number comes from
Part I asks questions rather than for amounts. The facts behind your answers are on the statement from the plan: “The payer should have given you a Form 1099-R or other statement that shows the amounts needed to complete Form 4972.” The distribution amounts on that statement are explained at Form 1099-R box 2a and pension and annuity decisions. Line 2 turns on a rollover, and the instructions treat a partly rolled over distribution this way: “The part of a distribution not rolled over if the distribution is partially rolled over to another qualified plan or an IRA.” Questions about a prior use of the form are tied to the participant: “After 1986, you can use Form 4972 only once for each plan participant.”
Where it goes next
If the answers allow it, you continue to Part II, headed “Complete this part to choose the 20% capital gain elections”, covered at Form 4972 Part II, lines 6 and 7. Part III, the 10-year tax option, starts at Form 4972 lines 8 to 17. The form is attached to your return: “Attach to Form 1040, 1040-SR, 1040-NR, or 1041.” See Form 1040 and the Form 1040 line by line guide for the return itself.
Counts and time limits in Part I
| Where | What the IRS prints |
|---|---|
| Line 4, years in the plan | “a participant in the plan for at least 5 years before the year of the distribution” |
| Amended return, time limit | “For an amended return, you must generally file within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later, to use any part of Form 4972.” |
The first row is part of line 4 itself. The second is the instructions’ filing-time rule for using the form on an amended return.
Edition and line numbers
This page reads Form 4972 for 2025 and its instructions, the current file irs.gov served on 2026-10-18, for a distribution received in 2025. Check the edition printed on your own form and use that edition’s line numbers.
Common mistakes
- Carrying on after rolling over part of the distribution. Line 2 asks “Did you roll over any part of the distribution?” and the form’s consequence for Yes is “don’t use this form”.
- Treating lines 3 and 4 as separate gates. The form combines them: “to both questions 3 and 4, don’t use this form.”
- Forgetting an earlier use of the form. Line 5a asks “Did you use Form 4972 after 1986 for a previous distribution from your own plan?”
Related: Form 1099-R boxes explained, Form 1099-R box 2a, pension and annuity decisions, and can your plan refuse to pay a pension lump sum.
Sources
- Form 4972 (2025) with instructions, Tax on Lump-Sum Distributions: https://www.irs.gov/pub/irs-pdf/f4972.pdf
- IRS: About Form 4972: https://www.irs.gov/forms-pubs/about-form-4972
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.