Instructions For Form 5329 - 2016 (Page 2 of 8) in pdf

retirement plan that you would have had

ABLE account of a designated

5329 for a prior year, see

Prior tax

to include in income if you had not rolled

beneficiary (or of an eligible individual

years, earlier.

them into a Roth IRA. Generally, the

who is a member of the family of the

Part I—Additional Tax on

10% additional tax on early distributions

designated beneficiary) of all or a

does not apply. For more information,

portion of an amount withdrawn from the

Early Distributions

see chapter 2 of Pub. 590-A.

designated beneficiary's ABLE account.

In general, if you receive an early

The contribution must be made within

The IRS may waive the 60-day

distribution (including an involuntary

60 days of the withdrawal date; and, if

requirement if failing to waive it would

cashout) from an IRA, other qualified

the rollover is to the designated

be against equity or good conscience,

retirement plan, or modified endowment

beneficiary's ABLE account, there must

such as situations where a casualty,

contract, the part of the distribution

have been no rollover to an ABLE

disaster, or other events beyond your

included in income generally is subject

account of that beneficiary within the

reasonable control prevented you from

to the 10% additional tax. But see

prior 12 months.

meeting the 60-day requirement. Also,

Distributions from a designated Roth

the 60-day period may be extended if

Program-to-program transfer. For

account

below and

Distributions from

you had a frozen deposit. See Time

an ABLE account, a

Roth

IRAs, later.

Limit for Making a Rollover Contribution

program-to-program transfer includes

The additional tax on early

under Can You Move Retirement Plan

the direct transfer of the entire balance

distributions does not apply to any of the

Assets? in Pub. 590-A for details. Also,

of an ABLE account into a second ABLE

following:

see Revenue Procedure 2016-47 in

account if both accounts have the same

A qualified HSA funding distribution

Internal Revenue Bulletin 2016-37

designated beneficiary and the first

from an IRA (other than a SEP or

available at

ABLE account is closed upon

SIMPLE IRA). See Qualified HSA

2016-37_IRB/ar09.html

for information

completion of the transfer. A

funding distribution under Health

on how to self-certify for a waiver.

program-to-program transfer also

Savings Accounts in Pub. 969 for

occurs when part or all of the balance in

In-plan Roth rollover. If you are a

details.

an ABLE account is transferred to the

participant in a 401(k), 403(b), or

A distribution from a traditional or

ABLE account of an eligible individual

governmental 457(b) plan, your plan

SIMPLE IRA that was converted to a

who is a member of the family of the

may permit you to roll over amounts

Roth IRA.

former designated beneficiary, as long

from those plans to a designated Roth

A rollover from a qualified retirement

as no intervening distribution is made to

account within the same plan. The

plan to a Roth IRA.

the designated beneficiary.

rollover of any untaxed amounts must

An in-plan rollover to a designated

be included in income. Generally, the

Roth account.

Additional Information

10% additional tax on early distributions

A distribution of certain excess IRA

does not apply. For more information,

See the following publications for more

contributions (see the instructions for

information about the items in these

see In-plan Roth rollovers under

line

15, later, and the instructions for

instructions:

Rollovers in Pub. 575.

line

23, later).

Pub. 590-A, Contributions to

Compensation. Compensation

Individual Retirement Arrangements

Note. Any related IRA earnings

includes wages, salaries, tips, bonuses,

(IRAs);

withdrawn with excess IRA contributions

and other pay you receive for services

Pub. 590-B, Distributions from

are subject to the 10% additional tax on

you perform. It also includes sales

Individual Retirement Arrangements

early distributions if you were under age

commissions, commissions on

(IRAs);

at the time of the distribution.

insurance premiums, and pay based on

Pub. 560, Retirement Plans for Small

a percentage of profits. It includes net

Business;

A distribution of excess deferrals.

earnings from self-employment, but only

Pub. 575, Pension and Annuity

Excess deferrals include distributions of

for a trade or business in which your

Income;

excess contributions from a qualified

personal services are a material

Pub. 969, Health Savings Accounts

cash or deferred arrangement (section

income-producing factor.

and Other Tax-Favored Health Plans;

401(k) plan), excess contributions from

For IRAs, treat nontaxable combat

Pub. 970, Tax Benefits for Education;

a tax-sheltered annuity (section 403(b)

pay and any differential wage payments,

and

plan), excess contributions from a SEP

and all taxable alimony received under a

Pub. 721, Tax Guide to U.S. Civil

IRA, and excess contributions from a

decree of divorce or separate

Service Retirement Benefits.

SIMPLE IRA.

maintenance as compensation.

A distribution of excess aggregate

Specific Instructions

Compensation does not include any

contributions to meet nondiscrimination

amounts received as a pension or

requirements for employee

annuity and does not include any

Joint returns. If both you and your

contributions and matching employer

amount received as deferred

spouse are required to file Form 5329,

contributions.

compensation.

complete a separate form for each of

A distribution from an eligible

you. Include the combined tax on Form

Taxable compensation is your

governmental section 457 deferred

1040, line 59.

compensation that is included in gross

compensation plan to the extent the

income reduced by any deductions on

distribution is not attributable to an

Amended returns. If you are filing an

Form 1040 or Form 1040NR, lines 27

amount transferred from a qualified

amended 2016 Form 5329, check the

and 28, but not by any loss from

retirement plan.

box at the top of page 1 of the form. Do

self-employment.

not use the 2016 Form 5329 to amend

See the instructions for

line

2, later,

your return for any other year. For

ABLE rollover. For an ABLE account,

for other distributions that are not

information about amending a Form

a rollover means a contribution to an

subject to the additional tax.

-2-

Instructions for Form 5329 (2016)

Instructions For Form 5329 - 2016 Page 2

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