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an excess contribution from prior years

You make the withdrawal by the due

the earnings as an early distribution on

on line 16 of your 1998 Form 5329, you

date, including extensions, of your 1999

line 1 of Form 5329 for the year in which

may owe this tax. But you may be able to

tax return,

you report the earnings.

avoid the tax on any 1999 excess

You do not claim a deduction for the

Part V—Tax on Excess

contributions. See the instructions for

amount of the withdrawn contribution, and

line 15.

You also withdraw any income earned

Contributions to Ed IRAs

on the withdrawn contribution and report

Line 10

If the contributions to your Ed IRAs for

the earnings on Form 1040 for the year

1999 were more than is allowable or an

If you contributed less to your traditional

you made the contribution. Also, if you

excess contribution is shown on line 20

IRA for 1999 than your contribution limit,

had not reached age 59

at the time of

of your 1998 Form 5329, you may owe

enter the difference.

the withdrawal, include the amount of the

this tax. But you may be able to avoid the

If you are not married filing jointly, your

earnings as an early distribution on line 1

tax on any 1999 excess contributions.

contribution limit is the smaller of

of Form 5329 for the year in which you

See the instructions for line 31.

$2,000 or your taxable compensation (see

report the earnings.

page 1). If you are married filing jointly,

Line 27

your contribution limit is generally $2,000.

Part IV—Tax on Excess

Enter the excess, if any, of the maximum

But if the combined taxable compensation

Contributions to Roth IRAs

amount that may be contributed, over the

for you and your spouse is less than

amount that was contributed, to your Ed

$4,000, see Spousal IRA Limit in Pub.

If you contributed more to your Roth IRA

IRAs in 1999. See the instructions for line

590 for special rules.

for 1999 than is allowable or you had an

31 to figure the maximum amount that

excess contribution on line 18 of your

Also include on line 9a or 9b

may be contributed.

1998 Form 5329, you may owe this tax.

(whichever applies) of the IRA Deduction

But you may be able to avoid the tax on

Worksheet on page 27 of the Form 1040

Line 31

any 1999 excess contributions. See the

instructions the smaller of Form 5329,

Enter the excess of the contributions to

instructions for line 23.

line 9 or line 10.

your Ed IRAs for 1999 (not including

Line 19

Line 11

rollovers) over the contribution limit for Ed

IRAs. The contribution limit is the smaller

If you contributed less to your Roth IRA

If you withdrew any money from your IRA

of $500 or the sum of the maximum

for 1999 than your contribution limit for

in 1999 that must be included in your

amounts allowed to be contributed by the

Roth IRAs, enter the difference. Your

income for 1999, enter that amount on

contributor(s) to your Ed IRA. The

contribution limit for Roth IRAs is

line 11. Do not include any contributions

maximum contribution a person may

generally your contribution limit for

withdrawn that will be reported on line 12.

make to an Ed IRA may be limited based

traditional IRAs (see the instructions for

Line 12

on the person's modified AGI. See Pub.

line 10) reduced by any amount you

590 for details.

contributed to traditional IRAs. But your

Enter any excess contributions to your

Also, all amounts contributed to an Ed

contribution limit for Roth IRAs may be

IRA for 1976 through 1997 that you

further reduced or eliminated if your

IRA are excess contributions if any

withdrew in 1999. Also, include any 1998

modified AGI for Roth IRA purposes is

amount is contributed to a qualified state

excess contributions that you withdrew

tuition program for the same beneficiary

over:

after the due date (including extensions)

(except for contributions to a qualified

$150,000 if married filing jointly,

of your 1998 income tax return, if:

state tuition program made from a

$0 if married filing separately and you

You did not claim a deduction for the

distribution from the beneficiary's Ed IRA).

lived with your spouse at any time in

excess and no deduction was allowable

You may withdraw some or all of the

1999, or

(without regard to the modified AGI

excess contributions for 1999 and they

limitation), and

$95,000 for any other taxpayer.

will not be treated as excess contributions

The total contributions to your IRA for

See Pub. 590 for details.

or taxed as distributions if:

the tax year for which the excess

Line 23

You make the withdrawal by the due

contributions were made were not more

date, including extensions, of your 1999

than $2,250 for tax years before 1997 or

Enter the excess of your contributions for

tax return (or by the date your return

$2,000 for tax years after 1996. (If the

1999 (not including rollovers) over your

would be due if you were required to file

total contributions for the year included

contribution limit for Roth IRAs (see the

a return), and

employer contributions to a SEP, increase

instructions for line 19). Any amounts

You also withdraw any income earned

that amount by the smaller of the amount

converted from a traditional IRA or

on the withdrawn contribution and include

of the employer contributions or $30,000.)

SIMPLE IRA to a Roth IRA are excess

the earnings in gross income for 1999.

contributions if your modified AGI for Roth

Line 15

IRA purposes is over $100,000 or your

Part VI—Tax on Excess

Enter the excess of your contributions for

filing status is married filing separately

1999 over your contribution limit (unless

and you lived with your spouse at any

Contributions to Medical

you properly withdraw the excess

time in 1999. See “Recharacterizations”

Savings Accounts (MSAs)

contributions—see below). See the

in the Instructions for Form 8606, and

instructions for line 10 to figure your

Pub. 590, for details.

If you or your employer contributed more

contribution limit.

to your MSA for 1999 than is allowable

You may withdraw some or all of your

Any amount you contribute to a

or an excess contribution from prior years

excess contributions for 1999 and they

traditional IRA for the year in which you

is shown on line 29 of your 1998 Form

will not be treated as excess contributions

reach age 70

or a later year is an

5329, you may owe this tax. But you may

or taxed as distributions if:

excess contribution (i.e., your contribution

be able to avoid the tax on any 1999

You make the withdrawal by the due

limit is zero). Do not include rollover

excess contributions. See the instructions

date, including extensions, of your 1999

contributions in figuring your excess

for line 39.

tax return, and

contributions.

You also withdraw any income earned

Line 35

You may withdraw some or all of your

on the withdrawn contribution and report

excess contributions for 1999 and they

If the contribution limit (the smaller of line

the earnings on Form 1040 for the year in

will not be treated as excess

5 or line 6 of Form 8853) is greater than

which you made the contribution. Also, if

contributions if:

the contributions to your MSA for 1999,

you had not reached age 59

at the time

enter the difference on line 35. Also

of the withdrawal, include the amount of

Page 3

Instructions For Form 5329 - Additional Taxes Attributable To Iras, Other Qualified Retirement Plans, Annuities, Modified Endowment Contracts, And Msas - 1999 Page 3

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