Form 8960 Net Investment tax

[ddoshan]

Got first form 8960 diagnostic. My client just took out all of his 401K large sum. From a quick look at the form and instructions it appears (not certain yet) that this would not be subject to that net investment tax. Not sure why this distribution would trigger the need for this form.
Anyone disagree that a his 401K distribution would not be subject to this tax.

[Maribeth]

My understanding is that retirement plan distributions are not subject to the tax. Nonqualified (nonretirement) annuity distributions are subject to the tax.