taxmap/instr2/i5329-007.htm#TXMP651cb49e
Part III—Additional Tax on Excess Contributions to Traditional IRAs(p3)

If you contributed more for 2011 than is allowable or you had an amount on line 17 of your 2010 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2011 excess contributions (see the instructions for line 15, later).

Enter the amount from line 16 of your 2010 Form 5329 only if the amount on line 17 of your 2010 Form 5329 is more than zero.

If you contributed less to your traditional IRAs for 2011 than your contribution limit for traditional IRAs, enter the difference.

If you are not married filing jointly, your contribution limit for traditional IRAs is the smaller of your taxable compensation (defined earlier) or $5,000 ($6,000 if age 50 or older at the end of 2011). If you are married filing jointly, your contribution limit is generally $5,000 ($6,000 if age 50 or older at the end of 2011) and your spouse's contribution limit is $5,000 ($6,000 if age 50 or older at the end of 2011). But if the combined taxable compensation for you and your spouse is less than $10,000 ($11,000 if one spouse is 50 or older at the end of 2011; $12,000 if both spouses are 50 or older at the end of 2011), see How Much Can Be Contributed? in Pub. 590 for special rules.

Also include on line 11a or 11b (line 11 for Form 1040NR) of the IRA Deduction Worksheet in the instructions for Form 1040 or Form 1040NR, line 32, the smaller of (a) Form 5329, line 10, or (b) the excess, if any, of Form 5329, line 9, over the sum of Form 5329, lines 11 and 12.

Enter on line 11 any withdrawals from your traditional IRAs that are included in your income. Do not include any withdrawn contributions reported on
line 12.

Enter any excess contributions to your traditional IRAs for 1976 through 2009 that you had returned to you in 2011 and any 2010 excess contributions that you had returned to you in 2011 after the due date (including extensions) of your 2010 income tax return, that are included on line 9, if:

• You did not claim a deduction for the excess contributions and no traditional IRA deduction was allowable (without regard to the modified AGI limitation) for the excess contributions, and
• The total contributions to your traditional IRAs for the tax year for which the excess contributions were made were not more than the amounts shown in the following table.

  Year(s)	Contribution limit	Contribution limit if age 50 or older at the end of the year
  2008 through 2010	$5,000	$6,000
  2007 or 2006	$4,000	$5,000
  2005	$4,000	$4,500
  2002 through 2004	$3,000	$3,500
  1997 through 2001	$2,000	—
  before 1997	$2,250	—

  If the total contributions for the year included employer contributions to a SEP, increase that amount by the smaller of the amount of the employer contributions or:

  2009 or 2010	$49,000
  2008	$46,000
  2007	$45,000
  2006	$44,000
  2005	$42,000
  2004	$41,000
  2003 or 2002	$40,000
  2001	$35,000
  before 2001	$30,000

Enter the excess of your contributions to traditional IRAs for 2011 (unless withdrawn—see below) over your contribution limit for traditional IRAs. See the instructions for line 10, earlier, to figure your contribution limit for traditional IRAs. Any amount you contribute for the year in which you reach age 701/2 or a later year is an excess contribution because your contribution limit is zero. Do not include rollovers in figuring your excess contributions.

You can withdraw some or all of your excess contributions for 2011 and they will not be treated as having been contributed if:

• You make the withdrawal by the due date, including extensions, of your 2011 tax return,
• You do not claim a traditional IRA deduction for the withdrawn contributions, and
• You withdraw any earnings on the withdrawn contribution and include the earnings in gross income (see the Instructions for Form 8606 for details). Also, if you had not reached age 591/2 at the time of the withdrawal, include the earnings as an early distribution on line 1 of Form 5329 for the year in which you report the earnings.

If you timely filed your return without withdrawing the excess contributions, you can still make the withdrawal no later than 6 months after the due date of your tax return, excluding extensions. If you do, file an amended return with Filed pursuant to section 301.9100-2 written at the top. Report any related earnings for 2011 on the amended return and include an explanation of the withdrawal. Make any other necessary changes on the amended return (for example, if you reported the contributions as excess contributions on your original return, include an amended Form 5329 reflecting that the withdrawn contributions are no longer treated as having been contributed).