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2006

Department of the Treasury

Internal Revenue Service

Instructions for Form 5329

Additional Taxes on Qualified Plans (Including IRAs)

and Other Tax-Favored Accounts

Who Must File

Section references are to the Internal

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

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

Revenue Code unless otherwise noted.

You must file Form 5329 if any of the

the rollover.

General Instructions

following apply, except you do not have

to file Form 5329 to report a qualified

When and Where To File

hurricane distribution.

•

What’s New

You received an early distribution

File Form 5329 with your 2006 Form

from a Roth IRA, the amount on Form

1040 or Form 1040NR by the due date,

Qualified reservist distributions. The

8606, line 23, is more than zero, and

including extensions, of your Form

additional 10% tax on early distributions

you are required to enter an amount

1040 or Form 1040NR.

does not apply to distributions from

that is more than zero on Form 5329,

If you do not have to file a 2006

IRAs or elective deferral accounts

line 1 (see Exception for Roth IRA

income tax return, complete and file

(401(k) and 403(b) plans, or similar

Distributions that begins on page 2).

•

Form 5329 by itself at the time and

arrangements) after September 11,

You received an early distribution

place you would be required to file

2001, if you were a reservist called to

from a qualified retirement plan (other

Form 1040 or Form 1040NR. Be sure

active duty for a period of more than

than a Roth IRA) and distribution code

to include your address on page 1 and

179 days or for an indefinite period.

1 is not shown in box 7 of Form

your signature and the date on page 2.

Generally, the distribution must be

1099-R, Distributions From Pensions,

Enclose, but do not attach, a check or

made during the period you were on

Annuities, Retirement or Profit-Sharing

money order payable to “United States

active duty. For more information on

Plans, IRAs, Insurance Contracts, etc.

Treasury” for any taxes due. Write your

these distributions, see Pub. 590,

Note. You do not have to file Form

SSN and “2006 Form 5329” on the

Individual Retirement Arrangements

5329 if distribution code 1 is correctly

check.

(IRAs). If you must file Form 5329,

shown in box 7 of all Forms 1099-R

enter exception number 11 on line 2.

Prior tax years. If you are filing Form

and you owe the additional tax on each

5329 for a prior year, you must use that

Form 1099-R. Instead, see the

Public safety employees. The

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

instructions for Form 1040, line 60, or

additional 10% tax on early distributions

have other changes, file Form 5329 by

Form 1040NR, line 55, for how to report

does not apply to distributions (from

itself (see above). If you have other

the additional 10% tax directly on that

governmental defined benefit plans)

changes, file Form 5329 for that year

line.

after August 17, 2006, if you were a

with Form 1040X, Amended U.S.

•

You meet an exception to the tax on

public safety employee (police officer,

Individual Income Tax Return.

early distributions and distribution code

firefighter, or medical service

1 is shown in box 7 of Form 1099-R.

employee) and you separated from

Definitions

•

You meet an exception to the tax on

service in or after the year you reach

early distributions from the list on page

age 50. If you must file Form 5329,

Qualified retirement plan. A qualified

3 but box 7 of your Form 1099-R does

enter exception number 01 on line 2.

retirement plan includes:

•

not indicate an exception or the

See the instructions for Line 2 on page

A qualified pension, profit-sharing, or

exception does not apply to the entire

3 for more information.

stock bonus plan (including a 401(k)

distribution.

plan),

•

Qualified charitable distributions.

You received taxable distributions

A tax-sheltered annuity contract,

•

Qualified charitable distributions are

from Coverdell ESAs or QTPs.

A qualified annuity plan, and

•

taken into account for purposes of the

The contributions for 2006 to your

An IRA.

minimum required distribution from your

traditional IRAs, Roth IRAs, Coverdell

For purposes of the additional tax on

IRA. See Required Distributions on

ESAs, Archer MSAs, or HSAs exceed

early distributions, an eligible

your maximum contribution limit, or you

page 6 for more information.

governmental section 457 deferred

had a tax due from an excess

compensation plan is treated as a

Purpose of Form

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

qualified retirement plan, but only to the

of your 2005 Form 5329.

•

Use Form 5329 to report additional

extent that a distribution is attributable

You did not receive the minimum

taxes on:

to an amount transferred from a

required distribution from your qualified

•

Individual retirement arrangements

qualified retirement plan (defined

retirement plan.

(IRAs),

above).

•

If you rolled over part or all of a

Other qualified retirement plans,

Note. Modified endowment contracts

•

TIP

distribution from a qualified

Modified endowment contracts,

are not qualified retirement plans.

•

retirement plan, the part rolled

Coverdell ESAs,

over is not subject to the additional tax

Traditional IRAs. For purposes of

•

Qualified tuition programs (QTPs),

on early distributions. See the

Form 5329, a traditional IRA is any IRA,

•

Archer MSAs, or

instructions for Form 1040, lines 15a

including a simplified employee pension

•

Health savings accounts (HSAs).

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

(SEP) IRA, other than a SIMPLE IRA or

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

Roth IRA.

Cat. No. 13330R

Instructions For Form 5329 - Additional Taxes On Qualified Plans (Including Iras) And Other Tax-Favored Accounts - 2006

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