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Department of the Treasury

Internal Revenue Service

Instructions for Form 5329

Additional Taxes Attributable to IRAs, Other Qualified

Retirement Plans, Annuities, Modified Endowment

Contracts, and MSAs

Section references are to the Internal Revenue Code unless otherwise noted.

See the instructions for Form 1040, lines

SEP IRAs. A SEP includes a salary

A Change To Note

15a and 15b or lines 16a and 16b, or

reduction SEP.

The 10% tax on early distributions does

Form 1040A, lines 10a and 10b or 11a

Early Distribution

not apply to distributions made because

and 11b, for how to report the rollover.

of an IRS levy on a qualified retirement

Generally, any distribution from your

plan. See page 2.

When and Where To File

qualified retirement plan, annuity, or

modified endowment contract before you

General Instructions

File Form 5329 with your 1999 Form 1040

reach age 59

is an early distribution.

by the due date, including extensions, of

See Part I—Tax on Early Distributions

your Form 1040.

on page 2 for details.

Purpose of Form

If you do not have to file a 1999 income

Rollover

tax return but have to file Form 5329,

Use Form 5329 to report any additional

complete and file Form 5329 with the IRS

tax on individual retirement arrangements

A rollover is a tax-free distribution of

at the time and place you would be

(IRAs), other qualified retirement plans,

assets from one qualified retirement plan

required to file Form 1040. Be sure to

annuities, modified endowment contracts,

that is reinvested in another plan.

include your address on page 1 and your

or medical savings accounts (MSAs).

Generally, you must complete the rollover

signature and date on page 2. Enclose,

within 60 days following the distribution.

but do not attach, a check or money order

Who Must File

See Pub. 590, Individual Retirement

payable to the “United States Treasury”

Arrangements (IRAs), for details.

You MUST file Form 5329 if any of the

for any taxes due. Write your social

Note: If you instruct the trustee of your

following apply.

security number and “1999 Form 5329”

plan to transfer funds directly to another

You received a distribution from a

on the check or money order.

plan, the transfer is not considered a

qualified retirement plan that is subject to

rollover. Do not include the amount

Filing for Previous Tax Years

the tax on early distributions, but

transferred in income or deduct the

distribution code 1 is not shown in box 7

If you are filing Form 5329 to pay a tax for

amount transferred as a contribution. A

of Form 1099-R, Distributions From

a previous year, you must use that year's

transfer from a qualified employee plan to

Pensions, Annuities, Retirement or

version of the form. For example, if you

an IRA, however, is considered a rollover.

Profit-Sharing Plans, IRAs, Insurance

are paying a tax for 1998, you must use

Contracts, etc.

Compensation

the 1998 Form 5329 to report the tax. If

Note: You do not have to file Form 5329

you also have other changes, file Form

Compensation includes wages, salaries,

for a distribution subject to the tax on

5329 for that year with Form 1040X,

professional fees, and other pay you

early distributions if distribution code 1 is

Amended U.S. Individual Income Tax

receive for services you perform. It also

correctly shown in box 7 of Form 1099-R.

Return. If you do not have any other

includes sales commissions, commissions

Instead, see the instructions for Form

changes for the previous year, file Form

on insurance premiums, pay based on a

1040, line 53, for how to report the 10%

5329 for that year by itself. See When

percentage of profit, tips, and bonuses.

tax.

and Where To File above.

It includes net earnings from

You meet an exception to the tax on

self-employment, but only for a trade or

Definitions

early distributions, but the correct

business in which your personal services

distribution code for the exception is not

are a material income-producing factor.

shown in box 7 of Form 1099-R.

Qualified Retirement Plan

For IRAs, treat all taxable alimony

You received distributions from

received under a decree of divorce or

A qualified retirement plan includes:

education (Ed) IRAs in excess of your

separate maintenance as compensation.

A qualified pension, profit-sharing, or

qualified higher education expenses.

Compensation does not include any

stock bonus plan (including a 401(k)

Your contributions for 1999 to your

amounts received as a pension or annuity

plan),

traditional IRAs, Roth IRAs, Ed IRAs, or

and does not include any amount

A tax-sheltered annuity contract,

MSAs are more than is allowable or you

received as deferred compensation.

A qualified annuity plan, and

had an excess contribution on line 16, 18,

Taxable compensation is your

An individual retirement account or

20, or 29 of your 1998 Form 5329.

compensation that is included in gross

annuity.

You did not receive the minimum

income, reduced by any deductions on

Note: Ed IRAs and MSAs are not

required distribution from your qualified

Form 1040, lines 27 and 29, but not by

retirement plan.

qualified retirement plans.

any loss from self-employment.

If you rolled over part or all of the

Traditional IRAs

Additional Information

TIP

taxable part of a distribution from

A traditional IRA is any IRA, including a

a qualified retirement plan (defined

See Pub. 590 and Pub. 575, Pension and

simplified employee pension (SEP) IRA,

on this page), the part rolled over is not

Annuity Income.

other than a SIMPLE IRA, Roth IRA, or

subject to the tax on early distributions.

Ed IRA.

Cat. No. 13330R

Instructions For Form 5329 - Additional Taxes Attributable To Iras, Other Qualified Retirement Plans, Annuities, Modified Endowment Contracts, And Msas - 1999

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