Reply To: Form 4972 eligibility

Home Fairmark Forum Retirement Savings and Benefits Form 4972 eligibility Reply To: Form 4972 eligibility

Alan S.

She should have received a formal Notice from the plan explaining the distribution, but my guess is that this is not qualified as a lump sum distribution and the total distribution box on the 1099R is not checked. Therefore, Form 4972 will not apply.

This might be a QEBA (qualified excess benefits arrangement) in which the excess amount above the 415b limit is distributed to the participant or participant’s survivor while the rest of the reduced benefit payments remain.

To be sure, she or a POA acceptable to the plan should ask for more info, but you might check whether she might have received a notice from the plan in the last few months about this distribution.