Looking for a Form 5329 Templates? Download it for free!

2 0

Department of the Treasury

Internal Revenue Service

Instructions for Form 5329

Additional Taxes on Qualified Plans (Including IRAs)

and Other Tax-Favored Accounts

Section references are to the Internal Revenue Code unless otherwise noted.

If you do not have to file a 2001

For IRAs, treat all taxable alimony

General Instructions

income tax return, complete and file Form

received under a decree of divorce or

5329 by itself at the time and place you

separate maintenance as compensation.

would be required to file Form 1040. Be

Purpose of Form

Compensation does not include any

sure to include your address on page 1

amounts received as a pension or annuity

Use Form 5329 to report any additional

and your signature and date on page 2.

and does not include any amount

taxes on individual retirement

Enclose, but do not attach, a check or

received as deferred compensation.

arrangements (IRAs), other qualified

money order payable to “United States

retirement plans, modified endowment

Treasury” for any taxes due. Write your

Taxable compensation is your

contracts, Coverdell education savings

SSN and “2001 Form 5329” on it.

compensation that is included in gross

accounts (ESAs), or Archer MSAs.

income reduced by any deductions on

Prior tax years. If you are filing Form

Form 1040, lines 27 and 29, but not by

Who Must File

5329 for a prior year, you must use that

any loss from self-employment.

year’s version of the form. If you have

You must file Form 5329 if any of the

other changes, file Form 5329 for that

Additional Information

following apply.

year with Form 1040X, Amended U.S.

•

You received an early distribution from

See Pub. 590, Individual Retirement

Individual Income Tax Return. If you do

a Roth IRA shown on Form 8606, line 21.

Arrangements, Pub. 575, Pension and

not have other changes, file Form 5329

•

You received an early distribution from

Annuity Income, and Pub. 970, Tax

by itself (see above).

a qualified retirement plan (other than a

Benefits for Higher Education.

Roth IRA) and, distribution code 1 is not

Definitions

shown in box 7 of Form 1099-R,

Distributions From Pensions, Annuities,

Qualified retirement plan. A qualified

Specific Instructions

Retirement or Profit-Sharing Plans, IRAs,

retirement plan includes:

•

Insurance Contracts, etc.

A qualified pension, profit-sharing, or

Joint returns. If both you and your

stock bonus plan (including a 401(k)

spouse are required to file Form 5329,

Note: You do not have to file Form 5329

plan),

complete a separate form for each of you.

if distribution code 1 is correctly shown in

•

A tax-sheltered annuity contract,

Include the combined tax on Form 1040,

box 7 of Form 1099-R. Instead, see the

•

line 55.

A qualified annuity plan, and

instructions for Form 1040, line 55, for

•

how to report the 10% additional tax

An IRA.

Amended return. If you are filing an

directly on that line.

amended 2001 Form 5329, check the box

Note: Modified endowment contracts are

•

You meet an exception to the tax on

at the top of page 1 of the form. Do not

not qualified retirement plans.

early distributions, but the correct

use the 2001 Form 5329 to amend your

Traditional IRAs. For purposes of Form

distribution code for the exception is not

return for any other year. Instead, see

5329, a traditional IRA is any IRA,

shown in box 7 of Form 1099-R.

Prior tax years on this page.

•

including a simplified employee pension

You received distributions from

(SEP) IRA, other than a SIMPLE IRA or

Coverdell ESAs in excess of your

Part I—Tax on Early

Roth IRA.

qualified higher education expenses.

Distributions

•

The contributions for 2001 to your

Early distribution. Generally, any

traditional IRAs, Roth IRAs, Coverdell

In general, if you receive an early

distribution from your IRA, other qualified

ESAs, or Archer MSAs are more than is

distribution (including an involuntary

retirement plan, or modified endowment

allowable or you had an excess

cashout) from an IRA, other qualified

contract before you reach age 59

is an

contribution on line 16, 24, 32, or 40 of

retirement plan, or modified endowment

early distribution.

your 2000 Form 5329.

contract, the part of the distribution

•

Rollover. A rollover is a tax-free

included in income is generally subject to

You did not receive the minimum

distribution of assets from one qualified

a 10% additional tax. But see Exception

required distribution from your qualified

retirement plan that is reinvested in

for Roth IRA Distributions on page 2.

retirement plan.

another plan or the same plan. Generally,

The tax on early distributions does not

If you rolled over part or all of a

you must complete the rollover within 60

apply to:

TIP

distribution from a qualified

days following the distribution. Any

•

Distributions from a traditional or

retirement plan, the part rolled

taxable amount not rolled over must be

SIMPLE IRA that were converted to a

over is not subject to the tax on early

included in income and may be subject to

Roth IRA;

distributions. See the instructions for

the tax on early distributions.

•

The distribution of certain excess IRA

Form 1040, lines 15a and 15b or lines

Compensation. Compensation includes

contributions (see the instructions for

16a and 16b, or Form 1040A, lines 11a

wages, salaries, tips, bonuses, and other

lines 15 and 23);

and 11b or 12a and 12b, for how to report

•

pay you receive for services you perform.

Distributions of excess contributions

the rollover.

It also includes sales commissions,

from a qualified cash or deferred

commissions on insurance premiums,

arrangement;

•

and pay based on a percentage of profits.

Distributions of excess aggregate

When and Where To File

It includes net earnings from

contributions to meet nondiscrimination

File Form 5329 with your 2001 Form 1040

self-employment, but only for a trade or

requirements for employee contributions

by the due date, including extensions, of

business in which your personal services

and matching employer contributions;

•

your Form 1040.

are a material income-producing factor.

Distributions of excess deferrals; and

Cat. No. 13330R

Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2001

Related Articles

Related forms

Related Categories