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first, then to your conversions and

For additional exceptions that apply

rollovers on a first-in, first-out basis.

to annuities, see Pub. 575.

No. Exception

The recapture amount is the amount of

Line 4

01 Qualified retirement plan distributions

the conversion or rollover that was

(does not apply to IRAs) you receive

subject to tax in the year of the

If any amount on line 3 was a

after separation from service in or after

conversion or the rollover. An early

distribution from a SIMPLE IRA

the year you reach age 55 (age 50 for

distribution allocated to a conversion or

received within 2 years from the date

qualified public safety employees).

rollover is first allocated to the taxable

you first participated in the SIMPLE IRA

portion.

plan, you must multiply that amount by

02 Distributions made as part of a series of

25% instead of 10%. These

substantially equal periodic payments

The recapture amount that you must

(made at least annually) for your life (or

distributions are included in boxes 1

include on line 1 will not exceed the

life expectancy) or the joint lives (or joint

and 2a of Form 1099-R and are

amount of your early distribution; and,

life expectancies) of you and your

designated with code S in box 7.

for purposes of determining this

designated beneficiary (if from an

recapture amount, a contribution,

Part II—Additional Tax

employer plan, payments must begin

conversion, or rollover amount (or

after separation from service).

on Certain Distributions

portion thereof) will only be allocated to

03 Distributions due to total and permanent

an early distribution once.

From Education

disability.

For more information about the

04 Distributions due to death (does not

Accounts

recapture amount for distributions from

apply to modified endowment contracts).

a Roth IRA, including how to calculate

05 Qualified retirement plan distributions up

Line 6

it, see Pub. 590. Also, see the Example

to (1) the amount you paid for

below that illustrates a situation where

This tax does not apply to distributions

unreimbursed medical expenses during

a taxpayer must include a recapture

that are includible in income if:

the year minus (2) 7.5% of your

amount on line 1.

•

Made due to the death or disability of

adjusted gross income for the year.

the beneficiary;

Example. You converted $20,000

06 Qualified retirement plan distributions

•

Made on account of a tax-free

from a traditional IRA to a Roth IRA in

made to an alternate payee under a

scholarship, allowance, or payment

2007 and converted $10,000 in 2008.

qualified domestic relations order (does

described in section 25A(g)(2);

Your 2007 Form 8606 had $5,000 on

not apply to IRAs).

•

Made because of attendance by the

line 17 and $15,000 on line 18 and your

07 IRA distributions made to unemployed

beneficiary at a U.S. military academy.

2008 Form 8606 had $3,000 on line 17

individuals for health insurance

This exception applies only to the

and $7,000 on line 18. You made Roth

premiums.

extent that the distribution does not

IRA contributions of $2,000 for 2007

exceed the costs of advanced

08 IRA distributions made for higher

and 2008. You did not make any Roth

education (as defined in title 10 of the

education expenses.

IRA conversions or contributions for

U.S. Code) at the academy; or

2009 through 2011, or take any Roth

09 IRA distributions made for purchase of a

•

Included in income because you

IRA distributions before 2011.

first home, up to $10,000.

used the qualified education expenses

On July 9, 2011, at age 53, you took

10 Distributions due to an IRS levy on the

to figure the American opportunity and

a $33,000 distribution from your Roth

qualified retirement plan.

lifetime learning credits.

IRA. Your 2011 Form 8606 shows

11 Qualified distributions to reservists while

Enter on line 6 the portion of line 5

$33,000 on line 19; $29,000 on line 23

serving on active duty for at least 180

that is excluded.

($33,000 minus $4,000 for your

days.

contributions on line 22) and $0 on line

Part III—Additional Tax

12 Other (see Other below). Also, enter this

25 ($29,000 minus your basis in

code if more than one exception applies.

on Excess Contributions

conversions of $30,000) and line 36.

First, $4,000 of the $33,000 is

to Traditional IRAs

allocated to your 2011 Form 8606, line

Other. The following exceptions also

If you contributed more for 2011 than is

22; then $15,000 to your 2007 Form

apply.

allowable or you had an amount on line

8606, line 18; $5,000 to your 2007

•

Distributions incorrectly indicated as

17 of your 2010 Form 5329, you may

Form 8606, line 17; and $7,000 to your

early distributions by code 1, J, or S in

owe this tax. But you may be able to

2008 Form 8606, line 18. The

avoid the tax on any 2011 excess

box 7 of Form 1099-R. Include on line 2

remaining $2,000 is allocated to the

the amount you received when you

contributions (see the instructions for

$3,000 on your 2008 Form 8606, line

were age 59

or older.

line 15, later).

17. On line 1, enter $22,000 ($15,000

•

Distributions from a section 457 plan,

allocated to your 2007 Form 8606, line

Line 9

which are not from a rollover from a

18, plus the $7,000 that was allocated

qualified retirement plan.

Enter the amount from line 16 of your

to your 2008 Form 8606, line 18).

•

Distributions from a plan maintained

2010 Form 5329 only if the amount on

If you take a Roth IRA distribution in

line 17 of your 2010 Form 5329 is more

by an employer if:

2012, the first $1,000 will be allocated

than zero.

1. You separated from service by

to the $1,000 remaining from your 2008

March 1, 1986;

Line 10

Form 8606, line 17, and will not be

2. As of March 1, 1986, your entire

subject to the additional tax on early

If you contributed less to your

interest was in pay status under a

distributions.

traditional IRAs for 2011 than your

written election that provides a specific

contribution limit for traditional IRAs,

Additional information. For more

schedule for distribution of your entire

enter the difference.

details, see Are Distributions Taxable?

interest; and

in Pub. 590.

3. The distribution is actually being

If you are not married filing jointly,

made under the written election.

your contribution limit for traditional

Line 2

•

Distributions that are dividends paid

IRAs is the smaller of your taxable

The additional tax on early distributions

with respect to stock described in

compensation (defined earlier) or

section 404(k).

does not apply to the distributions

$5,000 ($6,000 if age 50 or older at the

•

described below. Enter on line 2 the

Distributions from annuity contracts

end of 2011). If you are married filing

amount that can be excluded. In the

to the extent that the distributions are

jointly, your contribution limit is

space provided, enter the applicable

allocable to the investment in the

generally $5,000 ($6,000 if age 50 or

exception number (01-12).

contract before August 14, 1982.

older at the end of 2011) and your

-3-

Instructions for Form 5329 (2011)

Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2011 Page 3

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