Instructions For Form 5329 - 2010 printable pdf download

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 5329

Additional Taxes on Qualified Plans (Including IRAs)

and Other Tax-Favored Accounts

instructions for Form 1040, line 58, or

instructions for Form 1040 or Form

Section references are to the Internal

Form 1040NR, line 56, for how to report

1040NR, or go to IRS.gov.

Revenue Code unless otherwise noted.

the additional 10% tax directly on that

General Instructions

Prior tax years. If you are filing Form

line.

5329 for a prior year, you must use that

•

You received an early distribution

year’s version of the form. If you do not

What’s New

subject to the tax on early distributions

have other changes and have not

from a qualified retirement plan (other

previously filed a federal income tax

In-plan rollovers to designated Roth

than a Roth IRA), you meet an

return for that year, file Form 5329 by

accounts. After September 27, 2010,

exception to the tax on early

itself (discussed earlier). If you have

if you are a plan participant in a 401(k)

distributions, and distribution code 1 is

other changes, file Form 5329 for that

or 403(b) plan, your plan may permit

shown in box 7 of Form 1099-R.

year with Form 1040X, Amended U.S.

•

you to roll over amounts from those

You received an early distribution

Individual Income Tax Return.

plans to a designated Roth account

subject to the tax on early distributions

within the same plan (in-plan Roth

Definitions

from a qualified retirement plan (other

rollover). The rollover of any untaxed

than a Roth IRA), you meet an

amounts must be included in income. If

Qualified retirement plan. A qualified

exception to the tax on early

you take an early distribution from your

retirement plan includes:

distributions from the list on page 3 but

•

designated Roth account, allocable to

A qualified pension, profit-sharing, or

box 7 of your Form 1099-R does not

an in-plan Roth rollover, the distribution

stock bonus plan (including a 401(k)

indicate an exception or the exception

may be subject to the 10% additional

plan),

does not apply to the entire distribution.

•

tax on early distributions. See In-plan

A tax-sheltered annuity contract,

You received taxable distributions

•

Roth Rollovers on page 2 for more

A qualified annuity plan, and

from Coverdell ESAs or QTPs.

•

details.

An IRA.

The contributions for 2010 to your

Qualified charitable distributions

traditional IRAs, Roth IRAs, Coverdell

For purposes of the additional tax on

(QCDs). You can elect to have QCDs

ESAs, Archer MSAs, or HSAs exceed

early distributions, an eligible

your maximum contribution limit, or you

made in January 2011, treated as if

governmental section 457 deferred

had a tax due from an excess

made in 2010. If you make this election

compensation plan is treated as a

the QCDs will count toward your

contribution on line 17, 25, 33, 41, or 49

qualified retirement plan, but only to the

of your 2009 Form 5329.

minimum required distribution for 2010.

extent that a distribution is attributable

•

You did not receive the minimum

See Qualified charitable distributions in

to an amount transferred from a

Pub. 590, Individual Retirement

required distribution from your qualified

qualified retirement plan (defined

Arrangements (IRAs) for more

retirement plan.

above).

information.

Note. Modified endowment contracts

If you rolled over part or all of a

are not qualified retirement plans.

Purpose of Form

distribution from a qualified

TIP

retirement plan, the part rolled

Traditional IRAs. For purposes of

Use Form 5329 to report additional

over is not subject to the additional tax

Form 5329, a traditional IRA is any IRA,

taxes on:

on early distributions. See the

including a simplified employee pension

•

IRAs,

instructions for Form 1040, lines 15a

(SEP) IRA, other than a SIMPLE IRA or

•

Other qualified retirement plans,

and 15b or lines 16a and 16b; Form

Roth IRA.

•

Modified endowment contracts,

1040A, lines 11a and 11b or 12a and

•

Early distribution. Generally, any

Coverdell ESAs,

12b; or Form 1040NR, lines 16a and

•

distribution from your IRA, other

QTPs,

16b or 17a and 17b, for how to report

•

qualified retirement plan, or modified

Archer MSAs, or

the rollover.

•

endowment contract before you reach

HSAs.

age 59

is an early distribution.

When and Where To File

Who Must File

Rollover. Generally, a rollover is a

File Form 5329 with your 2010 Form

tax-free distribution of assets from one

You must file Form 5329 if any of the

1040 or Form 1040NR by the due date,

qualified retirement plan that is

following apply.

including extensions, of your Form

•

reinvested in another plan or the same

You received an early distribution

1040 or Form 1040NR.

plan. Generally, you must complete the

from a Roth IRA, the amount on line 30

rollover within 60 days of receiving the

of Form 8606, Nondeductible IRAs, is

If you do not have to file a 2010

distribution. Any taxable amount not

more than zero, and you are required to

income tax return, complete and file

rolled over must be included in income

enter an amount that is more than zero

Form 5329 by itself at the time and

and may be subject to the additional tax

on Form 5329, line 1 (see Exception for

place you would be required to file

on early distributions.

Roth IRA Distributions on page 2).

Form 1040 or Form 1040NR. Be sure

•

You received an early distribution

to include your address on page 1 and

You can roll over (convert) amounts

subject to the tax on early distributions

your signature and the date on page 2.

from a qualified retirement plan to a

from a qualified retirement plan (other

Enclose, but do not attach, a check or

Roth IRA. Any amount rolled over to a

than a Roth IRA). However, if

money order payable to “United States

Roth IRA is subject to the same rules

distribution code 1 is correctly shown in

Treasury” for any taxes due. Write your

for converting a traditional IRA to a

box 7 of all your Forms 1099-R, and

SSN and “2010 Form 5329” on the

Roth IRA. You must include in your

you owe the additional tax on each

check. For information on other

gross income distributions from a

Form 1099-R, you do not have to file

payment options, including credit or

qualified retirement plan that you would

Form 5329. Instead, see the

debit card payments, see the

have had to include in income if you

Cat. No. 13330R

Instructions For Form 5329 - 2010

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