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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.

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

The IRS may waive the 60-day

General Instructions

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

requirement if failing to waive it would be

the rollover.

against equity or good conscience, such

A Change To Note

as situations where a casualty, disaster,

When and Where To File

or other events beyond your reasonable

Distributions from qualified tuition

control prevented you from meeting the

programs (QTPs) or Coverdell education

File Form 5329 with your 2003 Form 1040

60-day requirement. Also, the 60-day

savings accounts (ESAs) made because

by the due date, including extensions, of

period may be extended if you had a

of attendance by the beneficiary at a U.S.

your Form 1040.

frozen deposit. See Pub. 590, Individual

military academy generally are not

If you do not have to file a 2003

Retirement Arrangements (IRAs), for

subject to the 10% additional tax. See the

income tax return, complete and file Form

details.

instructions for line 6.

5329 by itself at the time and place you

Compensation. Compensation includes

would be required to file Form 1040. Be

Purpose of Form

wages, salaries, tips, bonuses, and other

sure to include your address on page 1

pay you receive for services you perform.

Use Form 5329 to report additional taxes

and your signature and date on page 2.

It also includes sales commissions,

on:

Enclose, but do not attach, a check or

•

commissions on insurance premiums,

Individual retirement arrangements

money order payable to “United States

and pay based on a percentage of profits.

(IRAs),

Treasury” for any taxes due. Write your

•

It includes net earnings from

Other qualified retirement plans,

SSN and “2003 Form 5329” on it.

•

self-employment, but only for a trade or

Modified endowment contracts,

Prior tax years. If you are filing Form

•

business in which your personal services

Coverdell ESAs,

5329 for a prior year, you must use that

•

are a material income-producing factor.

QTPs, or

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

•

Archer MSAs.

For IRAs, treat all taxable alimony

have other changes, file Form 5329 by

received under a decree of divorce or

itself (see above). If you have other

Who Must File

separate maintenance as compensation.

changes, file Form 5329 for that year with

Compensation does not include any

You must file Form 5329 if any of the

Form 1040X, Amended U.S. Individual

amounts received as a pension or annuity

following apply.

Income Tax Return.

•

and does not include any amount

You received an early distribution from

Definitions

received as deferred compensation.

a Roth IRA and the amount on Form

8606, line 21 is more than the amount, if

Taxable compensation is your

Qualified retirement plan. A qualified

any, on Form 8606, line 23.

compensation that is included in gross

•

retirement plan includes:

You received an early distribution from

•

income reduced by any deductions on

A qualified pension, profit-sharing, or

a qualified retirement plan (other than a

Form 1040, lines 28 and 30, but not by

stock bonus plan (including a 401(k)

Roth IRA) and distribution code 1 is not

any loss from self-employment.

plan),

shown in box 7 of Form 1099-R,

•

A tax-sheltered annuity contract,

Distributions From Pensions, Annuities,

Additional Information

•

A qualified annuity plan, and

Retirement or Profit-Sharing Plans, IRAs,

•

See Pub. 590, Pub. 560, Retirement

An IRA.

Insurance Contracts, etc.

Plans for Small Business, Pub. 575,

For purposes of the additional tax on

Note: You do not have to file Form 5329

Pension and Annuity Income, and Pub.

early distributions, an eligible

if distribution code 1 is correctly shown in

970, Tax Benefits for Education.

governmental section 457 deferred

box 7 of all Forms 1099-R. Instead, see

compensation plan is treated as a

the instructions for Form 1040, line 57, for

qualified retirement plan, but only to the

how to report the 10% additional tax

Specific Instructions

extent that a distribution is attributable to

directly on that line.

an amount transferred from a qualified

•

You meet an exception to the tax on

retirement plan (as defined above).

Joint returns. If both you and your

early distributions from the list on page 2

spouse are required to file Form 5329,

Note: Modified endowment contracts are

but box 7 of your Form 1099-R does not

complete a separate form for each of you.

not qualified retirement plans.

indicate an exception or the exception

Include the combined tax on Form 1040,

Traditional IRAs. For purposes of Form

does not apply to the entire distribution.

line 57.

•

5329, a traditional IRA is any IRA,

You received taxable distributions from

Amended return. If you are filing an

including a simplified employee pension

Coverdell ESAs or QTPs.

•

amended 2003 Form 5329, check the box

(SEP) IRA, other than a SIMPLE IRA or

The contributions for 2003 to your

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

Roth IRA.

traditional IRAs, Roth IRAs, Coverdell

use the 2003 Form 5329 to amend your

ESAs, or Archer MSAs exceed your

Early distribution. Generally, any

return for any other year. Instead, see

maximum contribution limit, or you had a

distribution from your IRA, other qualified

Prior tax years on this page.

tax due from an excess contribution on

retirement plan, or modified endowment

line 17, 25, 33, or 41 of your 2002 Form

contract before you reach age 59

is an

Part I—Additional Tax on

5329.

early distribution.

•

Early Distributions

You did not receive the minimum

Rollover. A rollover is a tax-free

required distribution from your qualified

distribution of assets from one qualified

In general, if you receive an early

retirement plan.

retirement plan that is reinvested in

distribution (including an involuntary

If you rolled over part or all of a

another plan or the same plan. Generally,

cashout) from an IRA, other qualified

TIP

distribution from a qualified

you must complete the rollover within 60

retirement plan, or modified endowment

retirement plan, the part rolled

days following the distribution. Any

contract, the part of the distribution

over is not subject to the additional tax on

taxable amount not rolled over must be

included in income generally is subject to

early distributions. See the instructions for

included in income and may be subject to

a 10% additional tax. But see Exception

Form 1040, lines 15a and 15b or lines

the additional tax on early distributions.

for Roth IRA Distributions on page 2.

Cat. No. 13330R

Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2003

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