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income earned on excess contributions to

Other. The following exceptions also

your traditional IRAs and Roth IRAs),

apply:

Specific Instructions

An annuity contract, or

A distribution was incorrectly indicated

as an early distribution (code 1 or S was

A modified endowment contract

Joint returns. Each spouse must

incorrectly entered in box 7 of Form

entered into after June 20, 1988.

complete a separate Form 5329 if both

1099-R). Include on line 2 the amount you

spouses are required to file. Include the

Exception. If you received a Roth IRA

received when you were age 59

combined tax on Form 1040, line 53.

distribution, include on line 1 the smaller

older.

of: (a) line 19 of your 1999 Form 8606,

Amended return. If you are filing an

Any distributions from a plan

or (b) the sum of lines 16 and 26 of your

amended 1999 Form 5329, check the box

maintained by an employer if:

1999 Form 8606 plus the excess, if any,

at the top of page 1 of the form. Do not

of line 16 of your 1998 Form 8606 over

1. You separated from service by

use the 1999 Form 5329 to amend your

line 20 of that Form 8606.

March 1, 1986;

return for any other year. Instead, see

Filing for Previous Tax Years on

Certain prohibited transactions, such

2. As of March 1, 1986, your entire

page 1.

as borrowing from your IRA or pledging

interest was in pay status under a written

your IRA assets as security for a loan, are

election that provides a specific schedule

Part I—Tax on Early

considered to be taxable distributions and

for distribution of your entire interest; and

may also cause you to owe the tax on

3. The distribution is actually being

Distributions

early distributions. See Pub. 590 for

made under the written election.

In general, if you receive an early

details.

Distributions that are dividends paid

distribution (including an involuntary

with respect to stock described in section

Line 2

cashout) from a traditional IRA, Roth IRA,

404(k).

or other qualified retirement plan, an

The 10% additional tax does not apply to

Distributions from annuity contracts to

annuity contract, or a modified

the distributions described below. Enter

the extent that the distributions are

endowment contract, the taxable part of

on line 2 the amount that can be

allocable to the investment in the contract

the distribution is subject to an additional

excluded. In the space provided, enter the

before August 14, 1982.

10% tax.

applicable exception number (01-11).

For additional exceptions that apply to

The tax on early distributions does not

annuities, see Pub. 575.

No.

Exception

apply to:

1999 IRA contributions withdrawn

Line 4

Distribution due to separation from

during the year;

service after reaching age 55

If any amount on line 3 was a distribution

1998 excess contributions withdrawn in

(applies only to qualified employee

from a SIMPLE retirement plan received

1999 by the due date (including

plans).

within 2 years from the date you first

extensions) of your 1998 tax return;

participated in the plan, you must multiply

Distribution made as part of a

Excess IRA contributions for years

that amount by 25% instead of 10%.

series of substantially equal

before 1998 withdrawn in 1999 and 1998

These distributions are included in boxes

periodic payments (made at least

excess contributions withdrawn after the

1 and 2a of Form 1099-R and are

annually) for your life (or life

due date (including extensions) of your

designated with code S in box 7.

expectancy) or the joint lives (or

1998 tax return if (a) no deduction was

joint life expectancies) of you and

allowable (without regard to the modified

Part II—Tax on Certain

your designated beneficiary (if

adjusted gross income (AGI) limitation)

from a qualified employee plan,

Taxable Distributions From

nor taken for the excess contributions,

payments must begin after

Education (Ed) IRAs

and (b) your total IRA contributions for the

separation from service).

tax year for which the excess

Distribution due to total and

contributions were made were not more

Line 6

permanent disability.

than $2,250 for tax years before 1997 or

The 10% additional tax does not apply to

$2,000 for tax years after 1996 (if your

Distribution due to death (does not

distributions that are—

total contributions for the year included

apply to modified endowment

Due to the death or disability of the

employer contributions to a SEP, increase

contracts).

beneficiary;

that amount by the smaller of the

Distribution to the extent you have

Made on account of a tax-free

employer contributions or $30,000);

deductible medical expenses that

scholarship, allowance, or payment

Distributions of excess contributions

can be claimed on line 4 of

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

from a qualified cash or deferred

Schedule A (Form 1040) (does not

Taxable solely because you elected to

arrangement;

apply to annuity or modified

waive any exclusion you may be entitled

Distributions of excess aggregate

endowment contracts).

to for your 1999 qualified higher education

contributions to meet nondiscrimination

expenses. (This election was made by

Distributions made to an alternate

requirements for employee contributions

checking the “Yes” box on line 29 of Form

payee under a qualified domestic

and matching employer contributions;

8606.)

relations order (applies only to

Distributions of excess deferrals; and

The additional 10% tax also does not

qualified employee plans).

Amounts distributed from unfunded

apply to excess contributions to an Ed

deferred compensation plans of

Distributions made to unemployed

IRA that are distributed to you by the due

tax-exempt or state and local government

individuals for health insurance

date of your return (including extensions).

employers.

premiums (applies only to IRAs).

The distribution must include earnings on

See the instructions for line 2 on this

the excess contributions.

Distributions made for higher

page for other distributions that are not

education expenses (applies only

Enter on line 6 the total amount that

subject to the tax.

to IRAs).

can be excluded.

Line 1

Distributions made for purchase

Part III—Tax on Excess

of a first home, up to $10,000

Enter the taxable amount of early

Contributions to Traditional

(applies only to IRAs).

distributions you received from:

IRAs

A qualified pension plan, including

Distributions due to an IRS levy

traditional IRAs and Roth IRAs (and

of the qualified plan.

If you contributed more to your traditional

Other (see instructions below).

IRA for 1999 than is allowable or you had

Page 2

Instructions For Form 5329 - Additional Taxes Attributable To Iras, Other Qualified Retirement Plans, Annuities, Modified Endowment Contracts, And Msas - 1999 Page 2

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