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

Part IX—Additional Tax on

information on this form to carry out the

Trusts and estates. Include the

Internal Revenue laws of the United

Excess Accumulation in

amount of tax, if any, on Form 1041,

States. We need this information to

Schedule G, line 7. Write “From Form

Qualified Retirement Plans

ensure that you are complying with

5329” and the amount of the tax to the

(Including IRAs)

these laws and to allow us to figure and

left of the line 7 entry space.

collect the right amount of tax. You are

You owe this tax if you do not receive

Roth IRA. There are no minimum

required to give us this information if you

the required minimum distribution from

required distributions during the lifetime

made certain contributions or received

your qualified retirement plan, including

of the owner of a Roth IRA. Following

certain distributions from qualified plans,

an IRA or an eligible section 457

the death of the Roth IRA owner,

including IRAs, and other tax-favored

deferred compensation plan. The

required distribution rules apply to the

accounts. Our legal right to ask for the

additional tax is 50% of the excess

beneficiary. See Must You Withdraw or

information requested on this form is

accumulation, which is the difference

Use Assets? in Pub. 590-B for details.

sections 6001, 6011, 6012(a), and 6109

between the amount that was required

and their regulations. If you do not

Qualified retirement plans (other

to be distributed and the amount that

provide this information, or you provide

than IRAs) and eligible section 457

was actually distributed. The tax is due

incomplete or false information, you

deferred compensation plans. In

for the tax year that includes the last day

may be subject to penalties.

general, you must begin receiving

by which the minimum required

distributions from your plan no later than

distribution must be taken.

You are not required to provide the

April 1 following the later of (a) the year

information requested on a form that is

Line 52

in which you reach age 70

or (b) the

subject to the Paperwork Reduction Act

year in which you retire.

IRA (other than a Roth IRA). You

unless the form displays a valid OMB

must start receiving distributions from

control number. Books or records

Exception. If you owned more than

your IRA by April 1 of the year following

relating to a form or its instructions must

5% of the employer maintaining the

the year in which you reach age 70

. At

be retained as long as their contents

plan, you must begin receiving

that time, you can receive your entire

may become material in the

distributions no later than April 1 of the

interest in the IRA or begin receiving

administration of any Internal Revenue

year following the year in which you

periodic distributions. If you choose to

law. Generally, tax returns and return

reach age 70

, regardless of when you

receive periodic distributions, you must

information are confidential, as required

retire.

receive a minimum required distribution

by section 6103. However, we may give

Your plan administrator should figure

each year. You can figure the minimum

this information to the Department of

the amount that must be distributed

required distribution by dividing the

Justice for civil and criminal litigation,

each year.

account balance of your IRAs (other

and to cities, states, the District of

than Roth IRAs) on December 31 of the

Waiver of tax. The IRS can waive part

Columbia, and U.S. commonwealths

year preceding the distribution by the

or all of this tax if you can show that any

and possessions to carry out their tax

applicable life expectancy. For

shortfall in the amount of distributions

laws. We may also disclose this

applicable life expectancies, see

was due to reasonable error and you

information to other countries under a

Figuring the Owner's Required Minimum

are taking reasonable steps to remedy

tax treaty, to federal and state agencies

Distribution under When Must You

the shortfall. If you believe you qualify

to enforce federal nontax criminal laws,

Withdraw Assets? in Pub. 590-B.

for this relief, attach a statement of

or to federal law enforcement and

explanation and file Form 5329 as

intelligence agencies to combat

If the trustee, custodian, or issuer of

follows.

terrorism.

your IRA informs you of the minimum

required distribution, you can use that

1. Complete lines 52 and 53 as

The average time and expenses

amount.

instructed.

required to complete and file this form

If you have more than one IRA, you

2. Enter “RC” and the amount you

will vary depending on individual

can take the minimum required

want waived in parentheses on the

circumstances. For the estimated

distribution from any one or more of the

dotted line next to line 54. Subtract this

averages, see the instructions for your

IRAs (other than Roth IRAs).

amount from the total shortfall you

income tax return.

figured without regard to the waiver, and

For more details on the minimum

If you have suggestions for making

enter the result on line 54.

distribution rules (including examples),

this form simpler, we would be happy to

see When Must You Withdraw Assets?

3. Complete line 55 as instructed.

hear from you. See the instructions for

in Pub. 590-B.

You must pay any tax due that is

your income tax return.

reported on line 55.

A qualified charitable

distribution will count towards

The IRS will review the information

TIP

your required minimum

you provide and decide whether to grant

distribution. See Qualified charitable

your request for a waiver.

distributions under Are Distributions

Taxable? in chapter 1 of Pub. 590-B for

Privacy Act and Paperwork Reduc-

more information.

tion Act Notice. We ask for the

-8-

Instructions for Form 5329 (2016)

Instructions For Form 5329 - 2016 Page 8

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