Tax On Lump-Sum Distributions

(1) A separate tax is imposed on that portion of a lump-sum distribution for which a deduction was allowed by section 62(a)(8) of the Internal Revenue Code (now repealed). (2) The tax is 10% of the amount of tax determined under section 402(d) of the Internal Revenue Code that was in effect and applicable to a distribution before amendment by section 1401 of Public Law 104-188. (3) All means available for the administration and enforcement of income taxes must be applied to the tax on lump-sum distributions.