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

Line 15

Line 18

2008). If you are married filing jointly,

Enter the excess of your contributions

Enter the amount from line 24 of your

your contribution limit is generally

to traditional IRAs for 2008 (unless

2007 Form 5329 only if the amount on

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

line 25 of your 2007 Form 5329 is more

withdrawn — see below) over your

end of 2008) and your spouse’s

than zero.

contribution limit for traditional IRAs.

contribution limit is $5,000 ($6,000 if

See the instructions for line 10 that

age 50 or older at the end of 2008). But

Line 19

begin on page 3 to figure your

if the combined taxable compensation

contribution limit for traditional IRAs.

If you contributed less to your Roth

for you and your spouse is less than

Any amount you contribute for the year

IRAs for 2008 than your contribution

$10,000 ($11,000 if one spouse is 50 or

in which you reach age 70

or a later

limit for Roth IRAs, enter the difference.

older at the end of 2008; $12,000 if

year is an excess contribution because

Your contribution limit for Roth IRAs is

both spouses are 50 or older at the end

your contribution limit is zero. Do not

generally your contribution limit for

of 2008), see How Much Can Be

include rollovers in figuring your excess

traditional IRAs (see the instructions for

Contributed? in Pub. 590 for special

contributions.

line 10 that begin on page 3) reduced

rules.

by the amount you contributed to

You can withdraw some or all of your

traditional IRAs. But your contribution

If you participated in a 401(k)

excess contributions for 2008 and they

limit for Roth IRAs may be further

TIP

plan and the employer who

will not be treated as having been

reduced or eliminated if your modified

maintained the plan went into

contributed if:

AGI for Roth IRA purposes is over:

bankruptcy in an earlier year, you may

•

$159,000 if married filing jointly or

You make the withdrawal by the due

be able to contribute up to $8,000 to

qualifying widow(er),

date, including extensions, of your 2008

your traditional IRA. See Pub. 590 for

•

$0 if married filing separately and you

tax return,

more details.

•

lived with your spouse at any time in

You do not claim a traditional IRA

2008, or

deduction for the withdrawn

Also include on line 11a or 11b of

•

$101,000 for any other taxpayer.

contributions, and

the IRA Deduction Worksheet in the

•

You withdraw any earnings on the

instructions for Form 1040, line 32, the

See Pub. 590 for details.

withdrawn contribution and include the

smaller of (a) Form 5329, line 10, or (b)

Line 20

earnings in gross income (see the

the excess, if any, of Form 5329, line 9,

Instructions for Form 8606 for details).

over the sum of Form 5329, lines 11

Generally, enter the amount from Form

Also, if you had not reached age 59

and 12.

8606, line 19, plus any qualified

at the time of the withdrawal, include

distributions. But if you withdrew the

the earnings as an early distribution on

Line 11

entire balance of all your Roth IRAs, do

line 1 of Form 5329 for the year in

not enter less than the amount on Form

Enter on line 11 any withdrawals from

which you report the earnings.

5329, line 18 (see Example).

your traditional IRAs that are included

Example. You contributed $1,000

in your income. Do not include any

If you timely filed your return without

to a Roth IRA in 2006, your only

withdrawn contributions reported on

withdrawing the excess contributions,

contribution to Roth IRAs. In 2008, you

line 12.

you can still make the withdrawal no

discovered you were not eligible to

later than 6 months after the due date

contribute to a Roth IRA in 2006. On

Line 12

of your tax return, excluding extensions.

September 9, 2008, you withdrew $800,

If you do, file an amended return with

Enter any excess contributions to your

the entire balance in the Roth IRA. You

“Filed pursuant to section 301.9100-2”

traditional IRAs for 1976 through 2006

must file Form 5329 for 2006 and 2007

written at the top. Report any related

that you had returned to you in 2008

to pay the additional taxes for those

earnings for 2008 on the amended

and any 2007 excess contributions that

years. When you complete Form 5329

return and include an explanation of the

you had returned to you in 2008 after

for 2008, you enter $1,000 (not $800)

withdrawal. Make any other necessary

the due date (including extensions) of

on line 20, because you withdrew the

changes on the amended return (for

your 2007 income tax return, that are

entire balance.

example, if you reported the

included on line 9, if:

•

contributions as excess contributions

Line 23

You did not claim a deduction for the

on your original return, include an

excess contributions and no traditional

Enter the excess of your contributions

amended Form 5329 reflecting that the

IRA deduction was allowable (without

to Roth IRAs for 2008 (unless

withdrawn contributions are no longer

regard to the modified AGI limitation)

withdrawn — see below) over your

treated as having been contributed).

for the excess contributions, and

contribution limit for Roth IRAs (see the

•

The total contributions to your

instructions for line 19 on this page).

traditional IRAs for the tax year for

Part IV—Additional Tax

Any amounts converted (including

which the excess contributions were

on Excess Contributions

any amounts rolled over from a

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

qualified retirement plan) to a Roth IRA

for 2007 or 2006 ($5,000 if age 50 or

to Roth IRAs

are excess Roth IRA contributions if

older at the end of the year), (b) $4,000

your modified AGI for Roth IRA

If you contributed more to your Roth

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

purposes is over $100,000 or your filing

IRA for 2008 than is allowable or you

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

status is married filing separately and

had an amount on line 25 of your 2007

years after 2001 and before 2005

you lived with your spouse at any time

Form 5329, you may owe this tax. But

($3,500 if age 50 or older at the end of

in 2008. See Recharacterizations in the

you may be able to avoid the tax on

the year), (d) $2,000 for years after

Instructions for Form 8606 for details.

any 2008 excess contributions (see the

1996 and before 2002, or (e) $2,250 for

Do not include rollovers from another

instructions for line 23 that begin on this

years before 1997. If the total

Roth IRA or designated Roth account in

page).

contributions for the year included

figuring your excess contributions.

employer contributions to a SEP,

An economic stimulus payment

increase that amount by the smaller of

You can withdraw some or all of your

TIP

the amount of the employer

that was directly deposited into

excess contributions for 2008 and they

contributions or $45,000 ($44,000 for

a Roth IRA can be fully or partly

will not be treated as having been

2006, $42,000 for 2005, $41,000 for

withdrawn by the due date (including

contributed if:

•

2004, $40,000 for 2003 and 2002,

extensions) of your 2008 tax return.

You make the withdrawal by the due

$35,000 for 2001, or $30,000 for years

The amount withdrawn will not be

date, including extensions, of your 2008

before 2001).

subject to any additional tax or penalty.

tax return, and

-4-

Instructions For Form 5329 - Additional Taxes On Qualified Plans (Including Iras) And Other Tax-Favored Accounts - 2008 Page 4

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