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2011

Department of the Treasury

Internal Revenue Service

Instructions for Form 5329

Additional Taxes on Qualified Plans (Including IRAs)

and Other Tax-Favored Accounts

Definitions

indicate an exception or the exception

Section references are to the Internal

does not apply to the entire distribution.

Revenue Code unless otherwise noted.

Qualified retirement plan. A qualified

•

General Instructions

You received taxable distributions

retirement plan includes:

from Coverdell ESAs or QTPs.

•

A qualified pension, profit-sharing, or

•

The contributions for 2011 to your

stock bonus plan (including a 401(k)

What’s New

traditional IRAs, Roth IRAs, Coverdell

plan),

ESAs, Archer MSAs, or HSAs exceed

•

The IRS has created a page on

A tax-sheltered annuity contract,

your maximum contribution limit, or you

•

IRS.gov for information about Form

A qualified annuity plan, and

•

had a tax due from an excess

5329 and its instructions, at

An IRA.

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

gov/form5329. Information about any

For purposes of the additional tax on

future developments affecting Form

of your 2010 Form 5329.

early distributions, an eligible

•

5329 (such as legislation enacted after

You did not receive the minimum

governmental section 457 deferred

we release it) will be posted on that

required distribution from your qualified

compensation plan is treated as a

page.

retirement plan.

qualified retirement plan, but only to the

Purpose of Form

extent that a distribution is attributable

If you rolled over part or all of a

to an amount transferred from a

Use Form 5329 to report additional

distribution from a qualified

TIP

qualified retirement plan (defined

taxes on:

retirement plan, the part rolled

above).

•

IRAs,

over is not subject to the additional tax

Note. Modified endowment contracts

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Other qualified retirement plans,

on early distributions. See the

•

are not qualified retirement plans.

Modified endowment contracts,

instructions for Form 1040, lines 15a

•

Coverdell ESAs,

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

Traditional IRAs. For purposes of

•

QTPs,

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

Form 5329, a traditional IRA is any IRA,

•

Archer MSAs, or

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

including a simplified employee pension

•

HSAs.

(SEP) IRA, other than a SIMPLE IRA or

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

Roth IRA.

the rollover.

Who Must File

Early distribution. Generally, any

When and Where To File

distribution from your IRA, other

You must file Form 5329 if any of the

qualified retirement plan, or modified

following apply.

File Form 5329 with your 2011 Form

•

endowment contract before you reach

You received an early distribution

1040 or Form 1040NR by the due date,

age 59

is an early distribution.

from a Roth IRA, the amount on line 23

including extensions, of your Form

of Form 8606, Nondeductible IRAs, is

Rollover. Generally, a rollover is a

1040 or Form 1040NR.

more than zero, and you are required to

tax-free distribution of assets from one

enter an amount that is more than zero

qualified retirement plan that is

If you do not have to file a 2011

on Form 5329, line 1 (see Distributions

reinvested in another plan or the same

income tax return, complete and file

from Roth IRAs, later).

plan. Generally, you must complete the

Form 5329 by itself at the time and

•

You received an early distribution

rollover within 60 days of receiving the

place you would be required to file

subject to the tax on early distributions

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 of

than a Roth IRA). However, if

and may be subject to the additional tax

the form and your signature and the

distribution code 1 is correctly shown in

on early distributions.

date on page 2 of the form. Enclose,

box 7 of all your Forms 1099-R, and

You can roll over (convert) amounts

but do not attach, a check or money

you owe the additional tax on each

from a qualified retirement plan to a

order payable to “United States

Form 1099-R, you do not have to file

Roth IRA. Any amount rolled over to a

Treasury” for any taxes due. Write your

Form 5329. Instead, see the

Roth IRA is subject to the same rules

SSN and “2011 Form 5329” on the

instructions for Form 1040, line 58, or

for converting a traditional IRA to a

check. For information on other

Form 1040NR, line 56, for how to report

Roth IRA. You must include in your

payment options, including credit or

the additional 10% tax directly on that

gross income distributions from a

debit card payments, see the

line.

qualified retirement plan that you would

•

instructions for Form 1040 or Form

You received an early distribution

have had to include in income if you

1040NR, or go to IRS.gov.

subject to the tax on early distributions

had not rolled them into a Roth IRA.

from a qualified retirement plan (other

Generally, the 10% tax on early

Prior tax years. If you are filing Form

than a Roth IRA), you meet an

distributions does not apply. For more

5329 for a prior year, you must use the

exception to the tax on early

information, see chapter 2 of Pub. 590.

prior year’s version of the form. If you

distributions, and distribution code 1 is

do not have any other changes and

shown in box 7 of Form 1099-R.

The IRS may waive the 60-day

•

have not previously filed a federal

You received an early distribution

requirement if failing to waive it would

income tax return for the prior year, file

subject to the tax on early distributions

be against equity or good conscience,

the prior year’s version of Form 5329

from a qualified retirement plan (other

such as situations where a casualty,

by itself (discussed earlier). If you have

than a Roth IRA), you meet an

disaster, or other events beyond your

other changes, file Form 5329 for the

exception to the tax on early

reasonable control prevented you from

prior year with Form 1040X, Amended

distributions from the list on page 3 but

meeting the 60-day requirement. Also,

U.S. Individual Income Tax Return.

box 7 of your Form 1099-R does not

the 60-day period may be extended if

Nov 06, 2011

Cat. No. 13330R

Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2011

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