Instructions for Form 5329
taxmap/instr2/i5329-005.htm#TXMP667447d7See Pub.
590, Individual Retirement Arrangements; Pub.
560, Retirement Plans for Small Business; Pub. 575, Pension and Annuity Income; Pub. 969, Health Savings Accounts and Other Tax-Favored Health Plans; Pub. 970, Tax Benefits for Education; and Pub. 4492-B, Information for Affected Taxpayers in the Midwestern Disaster
Areas.
If both you and your spouse are required to file Form 5329, complete a separate form for each of you. Include the combined tax on Form 1040, line
58.
taxmap/instr2/i5329-005.htm#TXMP21f06b87If you are filing an amended 2011 Form 5329, check the box at the top of page 1 of the form. Do not use the 2011 Form 5329 to amend your return for any other year. For information about amending a Form 5329 for a prior year, see
Prior tax years, earlier.
taxmap/instr2/i5329-005.htm#TXMP54eb8353In general, if you receive an early distribution (including an involuntary cashout) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income generally is subject to an additional 10% tax. But see
Distributions from a designated Roth account and
Distributions from Roth IRAs, later.
The additional tax on early distributions does not apply to any of the following:
- A qualified HSA funding distribution from an IRA (other than a SEP or SIMPLE IRA). See Pub.
969 for details.
- A distribution from a traditional or SIMPLE IRA that was converted to a Roth
IRA.
- A rollover from a qualified retirement plan to a Roth IRA.
- In-plan rollover to a designated Roth account.
- A distribution of certain excess IRA contributions (see the instructions for line 15, later, and the instructions for line 23,
later).
- Note.Any related earnings withdrawn with excess contributions are subject to the additional tax on early distributions if you were under age
591/2 at the time of the distribution.
- A distribution of excess contributions from a qualified cash or deferred
arrangement.
- A distribution of excess aggregate contributions to meet nondiscrimination requirements for employee contributions and matching employer
contributions.
- A distribution of excess deferrals.
- A distribution from an eligible governmental section 457 deferred compensation plan to the extent the distribution is not attributable to an amount transferred from a qualified retirement plan (excluding an eligible section 457 deferred compensation
plan).
See the instructions for line 2, later, for other distributions that are not subject to the
tax.
taxmap/instr2/i5329-005.htm#TXMP708a5038Enter the amount of early distributions included in income that you received from:
- A qualified retirement plan, including earnings on withdrawn excess contributions to your IRAs included in income in 2011,
or
- A modified endowment contract entered into after June 20,
1988.
Certain prohibited transactions, such as borrowing from your IRA or pledging your IRA assets as security for a loan, are considered to be distributions and may also cause you to owe the additional tax on early distributions. See Pub.
590 for details.
If you received an early distribution from your designated Roth account, include on line 1 the amount of the distribution that you must include in your income. You will find this amount in box 2a of your 2011 Form 1099-R. If you made an in-plan Roth rollover in 2010 or 2011, you may also need to include a recapture amount on line 1 (discussed
next).
 | If you did not make an in-plan Roth rollover in 2010 or 2011, you only need to include on line 1 of this form the amount from box 2a of the 2011 Form 1099-R reporting the early
distribution. |
taxmap/instr2/i5329-005.htm#TXMP18581472If you made an in-plan Roth rollover in 2010 or 2011 and you received an early distribution for 2011, the recapture amount to include on line 1 is a portion of amounts you rolled over in 2010 and
2011.
The recapture amount that you must include on line 1 will not exceed the amount of your early distribution; and, for purposes of determining this recapture amount, a rollover amount (or portion of a rollover) will only be allocated to an early distribution
once.
For more information about the recapture amount for distributions from a designated Roth account, including how to calculate it, see Pub.
575.
If you received an early distribution from your Roth IRAs, include on line 1 the part of the distribution that you must include in your income. You will find this amount on line 25 of your 2011 Form 8606. You will also need to include on line 1 the following amounts.
- A qualified first-time homebuyer distribution from line 20 of your 2011 Form 8606. Also include this amount on line 2 and enter exception number
09.
- Recapture amounts attributable to any conversions or rollovers to your Roth IRAs in 2007, 2008, 2009, 2010, or 2011. See
Recapture amount subject to the additional tax on early distributions below.
| If you did not convert or roll over an amount to your Roth IRAs in 2007 through 2011, or have a first-time homebuyer distribution, you only need to include the amount from line 25 of your 2011 Form 8606 on line 1 of this
form. |
taxmap/instr2/i5329-005.htm#TXMP0fc9cc29If you converted or rolled over an amount to your Roth IRAs in 2007, 2008, 2009, 2010, or 2011 and you received an early distribution for 2011, the recapture amount to include on line 1 is the amount, if any, of the early distribution allocated to the taxable portion of your 2007 through 2011 conversions or
rollovers.
Generally, an early distribution is allocated to your Roth IRA contributions first, then to your conversions and rollovers on a first-in, first-out basis. The recapture amount is the amount of the conversion or rollover that was subject to tax in the year of the conversion or the rollover. An early distribution allocated to a conversion or rollover is first allocated to the taxable
portion.
The recapture amount that you must include on line 1 will not exceed the amount
of your early distribution; and, for purposes of determining this recapture
amount, a contribution, conversion, or rollover amount (or portion thereof) will
only be allocated to an early distribution once.
For more information about the recapture amount for distributions from a Roth IRA, including how to calculate it, see Pub.
590. Also, see the
Example
below that illustrates a situation where a taxpayer must include a recapture
amount on line 1.
You converted $20,000 from a traditional IRA to a Roth IRA in 2007 and converted $10,000 in 2008. Your 2007 Form 8606 had $5,000 on line 17 and $15,000 on line 18 and your 2008 Form 8606 had $3,000 on line 17 and $7,000 on line 18. You made Roth IRA contributions of $2,000 for 2007 and 2008. You did not make any Roth IRA conversions or contributions for 2009 through 2011, or take any Roth IRA distributions before
2011.
On July 9, 2011, at age 53, you took a $33,000 distribution from your Roth IRA.
Your 2011 Form 8606 shows $33,000 on line 19; $29,000 on line 23 ($33,000 minus
$4,000 for your contributions on line 22) and $0 on line 25 ($29,000 minus your
basis in conversions of $30,000) and line 36.
First, $4,000 of the $33,000 is allocated to your 2011 Form 8606, line 22; then $15,000 to your 2007 Form 8606, line 18; $5,000 to your 2007 Form 8606, line 17; and $7,000 to your 2008 Form 8606, line 18. The remaining $2,000 is allocated to the $3,000 on your 2008 Form 8606, line 17. On line 1, enter $22,000 ($15,000 allocated to your 2007 Form 8606, line 18, plus the $7,000 that was allocated to your 2008 Form 8606, line
18).
If you take a Roth IRA distribution in 2012, the first $1,000 will be allocated to the $1,000 remaining from your 2008 Form 8606, line 17, and will not be subject to the additional tax on early
distributions.
taxmap/instr2/i5329-005.htm#TXMP78524b07 For more details, see
Are Distributions Taxable? in Pub.
590.
The additional tax on early distributions does not apply to the distributions described below. Enter on line 2 the amount that can be excluded. In the space provided, enter the applicable exception number (01-12).
| No.
Exception |
| 01 | Qualified retirement plan distributions (does not apply to IRAs) you receive after separation from service in or after the year you reach age 55 (age 50 for qualified public safety employees).
|
| 02 | Distributions made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from an employer plan, payments must begin after separation from service).
|
| 03 | Distributions due to total and permanent disability. |
| 04 | Distributions due to death (does not apply to modified endowment
contracts). |
| 05 | Qualified retirement plan distributions up to (1) the amount you paid for unreimbursed medical expenses during the year minus (2) 7.5% of your adjusted gross income for the year.
|
| 06 | Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (does not apply to IRAs).
|
| 07 | IRA distributions made to unemployed individuals for health insurance
premiums. |
| 08 | IRA distributions made for higher education expenses. |
| 09 | IRA distributions made for purchase of a first home, up to
$10,000. |
| 10 | Distributions due to an IRS levy on the qualified retirement
plan. |
| 11 | Qualified distributions to reservists while serving on active duty for at least 180 days.
|
| 12 | Other (see
Other below). Also, enter this code if more than one exception applies.
|
| | |
The following exceptions also apply.
- Distributions incorrectly indicated as early distributions by code 1, J, or S in box 7 of Form 1099-R. Include on line 2 the amount you received when you were age
591/2 or older.
- Distributions from a section 457 plan, which are not from a rollover from a qualified retirement
plan.
- Distributions from a plan maintained by an employer if:
- You separated from service by March 1, 1986;
- As of March 1, 1986, your entire interest was in pay status under a written election that provides a specific schedule for distribution of your entire interest;
and
- The distribution is actually being made under the written
election.
- Distributions that are dividends paid with respect to stock described in section
404(k).
- Distributions from annuity contracts to the extent that the distributions are allocable to the investment in the contract before August 14,
1982.
For additional exceptions that apply to annuities, see Pub.
575.
If any amount on line
3
was a distribution from a SIMPLE IRA received within 2 years from the date you
first participated in the SIMPLE IRA plan, you must multiply that amount by 25%
instead of 10%. These distributions are included in boxes 1 and 2a of Form
1099-R and are designated with code S in box 7.
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