Instructions For Form 5329 - 2016 (Page 3 of 8) in pdf

Line 1

will also need to include on line 1 the

2013 Form 8606 had $3,000 on line 17

following amounts.

and $7,000 on line 18. You made Roth

Enter the amount of early distributions

A qualified first-time homebuyer

IRA contributions of $2,000 for 2012

included in income that you received

distribution from line 20 of your 2016

and 2013. You did not make any Roth

from:

Form 8606. Also include this amount on

IRA conversions or contributions for

A qualified retirement plan, including

line 2 and enter exception number 09.

2014 through 2016, or take any Roth

earnings on withdrawn excess

Recapture amounts attributable to

IRA distributions before 2016.

contributions to your IRAs included in

any conversions or rollovers to your

On July 9, 2016, at age 53, you took

income in 2016, or

Roth IRAs in 2012 through 2016. See

a $33,000 distribution from your Roth

A modified endowment contract

Recapture amount subject to the

IRA. Your 2016 Form 8606 shows

entered into after June 20, 1988.

additional tax on early distributions

next.

$33,000 on line 19; $29,000 on line 23

Certain prohibited transactions

($33,000 minus $4,000 for your

If you did not have a qualified

involving your IRA, such as borrowing

contributions on line 22) and $0 on

first-time homebuyer distribution

from your IRA or pledging your IRA

TIP

line 25 ($29,000 minus your basis in

in 2016, and you did not convert

assets as security for a loan, are

conversions of $30,000).

or roll over an amount to your Roth IRAs

considered to be distributions and are

in 2012 through 2016, you only need to

First, $4,000 of the $33,000 is

generally subject to the additional tax on

include the amount from line 25 of your

allocated to your 2016 Form 8606,

early distributions. See Prohibited

2016 Form 8606 on line 1 of this form.

line 22; then $15,000 to your 2012 Form

Transactions under What Acts Result in

8606, line 18; $5,000 to your 2012 Form

Penalties or Additional Taxes? in Pub.

Recapture amount subject to the

8606, line 17; and $7,000 to your 2013

590-B for details.

additional tax on early distributions.

Form 8606, line 18. The remaining

Distributions from a designated

If you converted or rolled over an

$2,000 is allocated to the $3,000 on

Roth account. If you received an early

amount to your Roth IRAs in 2012

your 2013 Form 8606, line 17. On line 1,

distribution from your designated Roth

through 2016 and you received an early

enter $22,000 ($15,000 allocated to

account, include on line 1 the amount of

distribution for 2016, the recapture

your 2012 Form 8606, line 18, plus the

the distribution that you must include in

amount you must include on line 1 is the

$7,000 that was allocated to your 2013

your income. You will find this amount in

amount, if any, of the early distribution

Form 8606, line 18).

box 2a of your 2016 Form 1099-R. You

allocated to the taxable portion of your

If you take a Roth IRA distribution in

may also need to include a recapture

2012 through 2016 conversions or

2017, the first $1,000 will be allocated to

amount on line 1 if you have ever made

rollovers.

the $1,000 remaining from your 2013

an in-plan Roth rollover (discussed

Generally, an early distribution is

Form 8606, line 17, and will not be

later).

allocated to your Roth IRA contributions

subject to the additional tax on early

first, then to your conversions and

If you never made an in-plan

distributions.

rollovers on a first-in, first-out basis. For

Roth rollover, you need to

TIP

Additional information. For more

each conversion or rollover, you must

include on line 1 of this form

details, see Are Distributions Taxable?

first allocate the early distribution to the

only the amount from box 2a of your

in chapters 1 and 2 of Pub. 590-B.

portion that was subject to tax in the

2016 Form 1099-R reporting the early

year of the conversion or rollover, and

Line 2

distribution.

then to the portion that was not subject

The additional tax on early distributions

to tax. The recapture amount is the sum

Recapture amount subject to the

does not apply to the distributions

of the early distribution amounts that

additional tax on early distributions.

described next. Enter on line 2 the

you allocate to these taxable portions of

If you have ever made an in-plan Roth

amount that you can exclude. In the

your conversions or rollovers.

rollover and you received an early

space provided, enter the applicable

distribution for 2016, the recapture

The recapture amount that you must

exception number (01–12). If more than

amount to include on line 1 is a portion

include on line 1 will not exceed the

one exception applies, enter 12.

of the amounts you rolled over.

amount of your early distribution; and,

The recapture amount that you must

for purposes of determining this

include on line 1 will not exceed the

recapture amount, you will allocate a

contribution, conversion, or rollover

amount of your early distribution; and,

amount (or portion thereof) to an early

for purposes of determining this

distribution only once.

recapture amount, you will allocate a

rollover amount (or portion thereof) to an

For more information about the

early distribution only once.

recapture amount for distributions from

a Roth IRA, including how to calculate it,

For more information about the

see Ordering Rules for Distributions

recapture amount for early distributions

under Are Distributions Taxable? in

from a designated Roth account,

chapter 2 of Pub. 590-B. Also, see

including how to calculate it, see Tax on

Example

next, which illustrates a

Early Distributions under Special

situation where a taxpayer must include

Additional Taxes in Pub. 575.

a recapture amount on line 1.

Distributions from Roth IRAs. If you

Example. You converted $20,000

received an early distribution from your

from a traditional IRA to a Roth IRA in

Roth IRAs, include on line 1 the part of

2012 and converted $10,000 in 2013.

the distribution that you must include in

Your 2012 Form 8606 had $5,000 on

your income. You will find this amount

line 17 and $15,000 on line 18 and your

on line 25 of your 2016 Form 8606. You

Instructions for Form 5329 (2016)

-3-

Instructions For Form 5329 - 2016 Page 3

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