A lump-sum distribution is the distribution or payment, within a single tax year, of an employee's entire balance from all of the employer's qualified pension, profit-sharing, or stock bonus plans. If you were born on or before January 1, 1936, or are the beneficiary of a participant born on or before January 1, 1936,  you may be able to able to elect optional methods of figuring the tax on lump-sum distributions you received from an eligible retirement plan.  These optional methods can be elected only once after 1986.

For other situations and further information, see Publication 575, Pension and Annuity Income.

 

 

If the amount rolled over was the net amount (the amount of the distribution less the tax withheld):

If the amount rolled over was the gross amount (the amount rolled over included the 20% that was withheld):

 

Generally, unless an exception applies, a distribution of your benefits from a 401(k) plan before age 59 ½ is subject to the 10% additional tax on early distributions from retirement plans. See Publication 575, Pension and Annuity Income.

 

However, there are special rules that apply to earlier distributions.  For example, a distribution from a 401(k) plan that is made after separation from service and age and in in each year after you reach 55 is not subject to the 10% tax.

The following IRS publications include additional information on retirement plans:

You may find additional information on the IRS’s website.