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The total contributions to your

withdrawn contributions are no longer

Any amounts converted to a Roth

traditional IRAs for the tax year for

treated as having been contributed).

IRA are excess Roth IRA contributions

which the excess contributions were

if your modified AGI for Roth IRA

made were not more than: (a) $4,000

Part IV—Additional Tax

purposes is over $100,000 or your filing

for 2006 ($5,000 if age 50 or older at

status is married filing separately and

on Excess Contributions

the end of the year), (b) $4,000 for

you lived with your spouse at any time

2005 ($4,500 if age 50 or older at the

in 2007. See Recharacterizations in the

to Roth IRAs

end of the year), (c) $3,000 for years

Instructions for Form 8606 for details.

If you contributed more to your Roth

after 2001 and before 2005 ($3,500 if

Do not include rollovers in figuring your

IRA for 2007 than is allowable or you

age 50 or older at the end of the year),

excess contributions.

had an amount on line 25 of your 2006

(d) $2,000 for years after 1996 and

You can withdraw some or all of your

Form 5329, you may owe this tax. But

before 2002, or (e) $2,250 for years

excess contributions for 2007 and they

you may be able to avoid the tax on

before 1997. If the total contributions

will not be treated as having been

any 2007 excess contributions (see the

for the year included employer

contributed if:

instructions for line 23).

contributions to a SEP, increase that

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You make the withdrawal by the due

amount by the smaller of the amount of

date, including extensions, of your 2007

Line 18

the employer contributions or $44,000

tax return, and

($42,000 for 2005, $41,000 for 2004,

Enter the amount from line 24 of your

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You withdraw any earnings on the

$40,000 for 2003 and 2002, $35,000 for

2006 Form 5329 only if the amount on

withdrawn contributions and include the

2001, or $30,000 for years before

line 25 of your 2006 Form 5329 is more

earnings in gross income (see the

2001).

than zero.

Instructions for Form 8606 for details).

Also, if you had not reached age 59

Line 19

Line 15

at the time of the withdrawal, include

If you contributed less to your Roth

Enter the excess of your contributions

the earnings as an early distribution on

IRAs for 2007 than your contribution

to traditional IRAs for 2007 (unless

line 1 of Form 5329 for the year in

limit for Roth IRAs, enter the difference.

withdrawn — see below) over your

which you report the earnings.

Your contribution limit for Roth IRAs is

contribution limit for traditional IRAs.

If you timely filed your return without

generally your contribution limit for

See the instructions for line 10 to figure

withdrawing the excess contributions,

traditional IRAs (see the instructions for

your contribution limit for traditional

you can still make the withdrawal no

line 10) reduced by the amount you

IRAs. Any amount you contribute for

later than 6 months after the due date

contributed to traditional IRAs. But your

the year in which you reach age 70

of your tax return, excluding extensions.

contribution limit for Roth IRAs may be

a later year is an excess contribution

If you do, file an amended return with

further reduced or eliminated if your

because your contribution limit is zero.

“Filed pursuant to section 301.9100-2”

modified AGI for Roth IRA purposes is

Do not include rollovers in figuring your

written at the top. Report any related

over:

excess contributions.

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earnings for 2007 on the amended

$156,000 if married filing jointly or

You can withdraw some or all of your

return and include an explanation of the

qualifying widow(er),

excess contributions for 2007 and they

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withdrawal. Make any other necessary

$0 if married filing separately and you

will not be treated as having been

changes on the amended return (for

lived with your spouse at any time in

contributed if:

example, if you reported the

2007, or

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You make the withdrawal by the due

contributions as excess contributions

$99,000 for any other taxpayer.

date, including extensions, of your 2007

on your original return, include an

See Pub. 590 for details.

tax return,

amended Form 5329 reflecting that the

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You do not claim a traditional IRA

withdrawn contributions are no longer

Line 20

deduction for the withdrawn

treated as having been contributed).

contributions, and

Generally, enter the amount from Form

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8606, line 19, plus any qualified

You withdraw any earnings on the

Part V—Additional Tax

withdrawn contribution and include the

distributions. But if you withdrew the

on Excess Contributions

earnings in gross income (see the

entire balance of all your Roth IRAs, do

Instructions for Form 8606 for details).

not enter less than the amount on Form

to Coverdell ESAs

Also, if you had not reached age 59

5329, line 18 (see Example).

at the time of the withdrawal, include

If the contributions to your Coverdell

Example. You contributed $1,000

the earnings as an early distribution on

ESAs for 2007 were more than is

to a Roth IRA in 2005, your only

line 1 of Form 5329 for the year in

allowable or you had an amount on line

contribution to Roth IRAs. In 2007, you

which you report the earnings.

33 of your 2006 Form 5329, you may

discovered you were not eligible to

owe this tax. But you may be able to

contribute to a Roth IRA in 2005. On

If you timely filed your return without

avoid the tax on any 2007 excess

September 9, 2007, you withdrew $800,

withdrawing the excess contributions,

contributions (see the instructions for

the entire balance in the Roth IRA. You

you can still make the withdrawal no

line 31).

must file Form 5329 for 2005 and 2006

later than 6 months after the due date

to pay the additional taxes for those

of your tax return, excluding extensions.

Line 26

years. When you complete Form 5329

If you do, file an amended return with

Enter the amount from line 32 of your

for 2007, you enter $1,000 (not $800)

“Filed pursuant to section 301.9100-2”

2006 Form 5329 only if the amount on

on line 20, because you withdrew the

written at the top. Report any related

line 33 of your 2006 Form 5329 is more

entire balance.

earnings for 2007 on the amended

than zero.

return and include an explanation of the

Line 23

withdrawal. Make any other necessary

Line 27

changes on the amended return (for

Enter the excess of your contributions

example, if you reported the

to Roth IRAs for 2007 (unless

Enter the excess, if any, of the

contributions as excess contributions

withdrawn — see below) over your

maximum amount that can be

on your original return, include an

contribution limit for Roth IRAs (see the

contributed to your Coverdell ESAs for

amended Form 5329 reflecting that the

instructions for line 19).

2007 (see the instructions for line 31)

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Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2007 Page 4

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