taxmap/instr2/i5329-009.htm#TXMP09951be9
Part V—Additional Tax on Excess Contributions to Coverdell ESAs(p5)

If the contributions to your Coverdell ESAs for 2011 were more than is allowable or you had an amount on line 33 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 31, later).

Enter the amount from line 32 of your 2010 Form 5329 only if the amount on line 33 of your 2010 Form 5329 is more than zero.

Enter the excess, if any, of the maximum amount that can be contributed to your Coverdell ESAs for 2011 (see the instructions for line 31 below) over the amount actually contributed for 2011.

Enter your total distributions from Coverdell ESAs in 2011. Do not include rollovers or returned excess contributions.

Enter the excess of the contributions to your Coverdell ESAs for 2011 (not including rollovers) over your contribution limit for Coverdell ESAs. Your contribution limit is the smaller of $2,000 or the sum of the maximum amounts allowed to be contributed by the contributor(s) to your Coverdell ESAs. The maximum contribution may be limited based on the contributor's modified AGI. See Pub. 970 for details.

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

• You make the withdrawal before June 1, 2012, and
• You also withdraw any income earned on the withdrawn contributions and include the earnings in gross income for the year in which the contribution was made.

If you filed your return without withdrawing the excess contributions, you can still make the withdrawal, but it must be made before June 1, 2012. If you do, file an amended return. 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the contributions as excess contributions on your original return, include an amended Form 5329 reflecting that the withdrawn contributions are no longer treated as having been contributed).