Instructions For Form 5329 - 2010


Department of the Treasury
Internal Revenue Service
Instructions for Form 5329
Additional Taxes on Qualified Plans (Including IRAs)
and Other Tax-Favored Accounts
instructions for Form 1040, line 58, or
instructions for Form 1040 or Form
Section references are to the Internal
Form 1040NR, line 56, for how to report
1040NR, or go to
Revenue Code unless otherwise noted.
the additional 10% tax directly on that
General Instructions
Prior tax years. If you are filing Form
5329 for a prior year, you must use that
You received an early distribution
year’s version of the form. If you do not
What’s New
subject to the tax on early distributions
have other changes and have not
from a qualified retirement plan (other
previously filed a federal income tax
In-plan rollovers to designated Roth
than a Roth IRA), you meet an
return for that year, file Form 5329 by
accounts. After September 27, 2010,
exception to the tax on early
itself (discussed earlier). If you have
if you are a plan participant in a 401(k)
distributions, and distribution code 1 is
other changes, file Form 5329 for that
or 403(b) plan, your plan may permit
shown in box 7 of Form 1099-R.
year with Form 1040X, Amended U.S.
you to roll over amounts from those
You received an early distribution
Individual Income Tax Return.
plans to a designated Roth account
subject to the tax on early distributions
within the same plan (in-plan Roth
from a qualified retirement plan (other
rollover). The rollover of any untaxed
than a Roth IRA), you meet an
amounts must be included in income. If
Qualified retirement plan. A qualified
exception to the tax on early
you take an early distribution from your
retirement plan includes:
distributions from the list on page 3 but
designated Roth account, allocable to
A qualified pension, profit-sharing, or
box 7 of your Form 1099-R does not
an in-plan Roth rollover, the distribution
stock bonus plan (including a 401(k)
indicate an exception or the exception
may be subject to the 10% additional
does not apply to the entire distribution.
tax on early distributions. See In-plan
A tax-sheltered annuity contract,
You received taxable distributions
Roth Rollovers on page 2 for more
A qualified annuity plan, and
from Coverdell ESAs or QTPs.
The contributions for 2010 to your
Qualified charitable distributions
traditional IRAs, Roth IRAs, Coverdell
For purposes of the additional tax on
(QCDs). You can elect to have QCDs
ESAs, Archer MSAs, or HSAs exceed
early distributions, an eligible
your maximum contribution limit, or you
made in January 2011, treated as if
governmental section 457 deferred
had a tax due from an excess
made in 2010. If you make this election
compensation plan is treated as a
the QCDs will count toward your
contribution on line 17, 25, 33, 41, or 49
qualified retirement plan, but only to the
of your 2009 Form 5329.
minimum required distribution for 2010.
extent that a distribution is attributable
You did not receive the minimum
See Qualified charitable distributions in
to an amount transferred from a
Pub. 590, Individual Retirement
required distribution from your qualified
qualified retirement plan (defined
Arrangements (IRAs) for more
retirement plan.
Note. Modified endowment contracts
If you rolled over part or all of a
are not qualified retirement plans.
Purpose of Form
distribution from a qualified
retirement plan, the part rolled
Traditional IRAs. For purposes of
Use Form 5329 to report additional
over is not subject to the additional tax
Form 5329, a traditional IRA is any IRA,
taxes on:
on early distributions. See the
including a simplified employee pension
instructions for Form 1040, lines 15a
(SEP) IRA, other than a SIMPLE IRA or
Other qualified retirement plans,
and 15b or lines 16a and 16b; Form
Roth IRA.
Modified endowment contracts,
1040A, lines 11a and 11b or 12a and
Early distribution. Generally, any
Coverdell ESAs,
12b; or Form 1040NR, lines 16a and
distribution from your IRA, other
16b or 17a and 17b, for how to report
qualified retirement plan, or modified
Archer MSAs, or
the rollover.
endowment contract before you reach
age 59
is an early distribution.
When and Where To File
Who Must File
Rollover. Generally, a rollover is a
File Form 5329 with your 2010 Form
tax-free distribution of assets from one
You must file Form 5329 if any of the
1040 or Form 1040NR by the due date,
qualified retirement plan that is
following apply.
including extensions, of your Form
reinvested in another plan or the same
You received an early distribution
1040 or Form 1040NR.
plan. Generally, you must complete the
from a Roth IRA, the amount on line 30
rollover within 60 days of receiving the
of Form 8606, Nondeductible IRAs, is
If you do not have to file a 2010
distribution. Any taxable amount not
more than zero, and you are required to
income tax return, complete and file
rolled over must be included in income
enter an amount that is more than zero
Form 5329 by itself at the time and
and may be subject to the additional tax
on Form 5329, line 1 (see Exception for
place you would be required to file
on early distributions.
Roth IRA Distributions on page 2).
Form 1040 or Form 1040NR. Be sure
You received an early distribution
to include your address on page 1 and
You can roll over (convert) amounts
subject to the tax on early distributions
your signature and the date on page 2.
from a qualified retirement plan to a
from a qualified retirement plan (other
Enclose, but do not attach, a check or
Roth IRA. Any amount rolled over to a
than a Roth IRA). However, if
money order payable to “United States
Roth IRA is subject to the same rules
distribution code 1 is correctly shown in
Treasury” for any taxes due. Write your
for converting a traditional IRA to a
box 7 of all your Forms 1099-R, and
SSN and “2010 Form 5329” on the
Roth IRA. You must include in your
you owe the additional tax on each
check. For information on other
gross income distributions from a
Form 1099-R, you do not have to file
payment options, including credit or
qualified retirement plan that you would
Form 5329. Instead, see the
debit card payments, see the
have had to include in income if you
Cat. No. 13330R


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