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2 0 07

Department of the Treasury

Internal Revenue Service

Instructions for Form 5329

Additional Taxes on Qualified Plans (Including IRAs)

and Other Tax-Favored Accounts

the additional 10% tax directly on that

return for that year, file Form 5329 by

Section references are to the Internal

line.

itself (discussed earlier). If you have

Revenue Code unless otherwise noted.

•

other changes, file Form 5329 for that

You meet an exception to the tax on

General Instructions

year with Form 1040X, Amended U.S.

early distributions and distribution code

Individual Income Tax Return.

1 is shown in box 7 of Form 1099-R.

•

What’s New

You meet an exception to the tax on

Definitions

early distributions from the list on page

Qualified health savings account

3 but box 7 of your Form 1099-R does

(HSA) funding distribution. You can

Qualified retirement plan. A qualified

not indicate an exception or the

elect to make a one-time direct

retirement plan includes:

exception does not apply to the entire

•

trustee-to-trustee transfer from your

A qualified pension, profit-sharing, or

distribution.

•

IRA (other than a SIMPLE IRA or a

stock bonus plan (including a 401(k)

You received taxable distributions

SEP IRA) to your HSA. The maximum

plan),

from Coverdell ESAs or QTPs.

•

amount you can transfer is the

A tax-sheltered annuity contract,

The contributions for 2007 to your

•

maximum HSA contribution limit for the

A qualified annuity plan, and

traditional IRAs, Roth IRAs, Coverdell

•

year. Generally, the amount transferred

An IRA.

ESAs, Archer MSAs, or HSAs exceed

is not included in your income and the

your maximum contribution limit, or you

For purposes of the additional tax on

additional 10% tax on early distributions

had a tax due from an excess

early distributions, an eligible

does not apply. See Pub. 969, Health

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

governmental section 457 deferred

Savings Accounts and Other

of your 2006 Form 5329.

compensation plan is treated as a

•

Tax-Favored Health Plans, for details.

You did not receive the minimum

qualified retirement plan, but only to the

required distribution from your qualified

extent that a distribution is attributable

Purpose of Form

retirement plan.

to an amount transferred from a

Use Form 5329 to report additional

qualified retirement plan (defined

If you rolled over part or all of a

taxes on:

above).

TIP

distribution from a qualified

•

Individual retirement arrangements

retirement plan, the part rolled

Note. Modified endowment contracts

(IRAs),

over is not subject to the additional tax

•

are not qualified retirement plans.

Other qualified retirement plans,

on early distributions. See the

•

Modified endowment contracts,

Traditional IRAs. For purposes of

instructions for Form 1040, lines 15a

•

Coverdell ESAs,

Form 5329, a traditional IRA is any IRA,

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

•

Qualified tuition programs (QTPs),

including a simplified employee pension

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

•

Archer MSAs, or

(SEP) IRA, other than a SIMPLE IRA or

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

•

Health savings accounts (HSAs).

Roth IRA.

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

the rollover.

Early distribution. Generally, any

Who Must File

distribution from your IRA, other

You must file Form 5329 if any of the

When and Where To File

qualified retirement plan, or modified

following apply.

endowment contract before you reach

File Form 5329 with your 2007 Form

•

You received an early distribution

age 59

is an early distribution.

1040 or Form 1040NR by the due date,

from a Roth IRA, the amount on Form

including extensions, of your Form

Rollover. A rollover is a tax-free

8606, line 23, is more than zero, and

1040 or Form 1040NR.

distribution of assets from one qualified

you are required to enter an amount

retirement plan that is reinvested in

If you do not have to file a 2007

that is more than zero on Form 5329,

another plan or the same plan.

income tax return, complete and file

line 1 (see Exception for Roth IRA

Generally, you must complete the

Form 5329 by itself at the time and

Distributions on page 2).

•

rollover within 60 days of receiving the

place you would be required to file

You received an early distribution

distribution. Any taxable amount not

Form 1040 or Form 1040NR. Be sure

from a qualified retirement plan (other

rolled over must be included in income

to include your address on page 1 and

than a Roth IRA) and distribution code

and may be subject to the additional tax

your signature and the date on page 2.

1 is not shown in box 7 of Form

on early distributions.

Enclose, but do not attach, a check or

1099-R, Distributions From Pensions,

money order payable to “United States

Annuities, Retirement or Profit-Sharing

The IRS may waive the 60-day

Treasury” for any taxes due. Write your

Plans, IRAs, Insurance Contracts, etc.

requirement if failing to waive it would

SSN and “2007 Form 5329” on the

Note. You do not have to file Form

be against equity or good conscience,

check.

5329 if distribution code 1 is correctly

such as situations where a casualty,

shown in box 7 of all Forms 1099-R

Prior tax years. If you are filing Form

disaster, or other events beyond your

and you owe the additional tax on each

5329 for a prior year, you must use that

reasonable control prevented you from

Form 1099-R. Instead, see the

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

meeting the 60-day requirement. Also,

instructions for Form 1040, line 60, or

have other changes and have not

the 60-day period may be extended if

Form 1040NR, line 55, for how to report

previously filed a federal income tax

you had a frozen deposit. See Pub.

Cat. No. 13330R

Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2007

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