Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2001

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Department of the Treasury
Internal Revenue Service
Instructions for Form 5329
Additional Taxes on Qualified Plans (Including IRAs)
and Other Tax-Favored Accounts
Section references are to the Internal Revenue Code unless otherwise noted.
If you do not have to file a 2001
For IRAs, treat all taxable alimony
General Instructions
income tax return, complete and file Form
received under a decree of divorce or
5329 by itself at the time and place you
separate maintenance as compensation.
would be required to file Form 1040. Be
Purpose of Form
Compensation does not include any
sure to include your address on page 1
amounts received as a pension or annuity
Use Form 5329 to report any additional
and your signature and date on page 2.
and does not include any amount
taxes on individual retirement
Enclose, but do not attach, a check or
received as deferred compensation.
arrangements (IRAs), other qualified
money order payable to “United States
retirement plans, modified endowment
Treasury” for any taxes due. Write your
Taxable compensation is your
contracts, Coverdell education savings
SSN and “2001 Form 5329” on it.
compensation that is included in gross
accounts (ESAs), or Archer MSAs.
income reduced by any deductions on
Prior tax years. If you are filing Form
Form 1040, lines 27 and 29, but not by
Who Must File
5329 for a prior year, you must use that
any loss from self-employment.
year’s version of the form. If you have
You must file Form 5329 if any of the
other changes, file Form 5329 for that
Additional Information
following apply.
year with Form 1040X, Amended U.S.
You received an early distribution from
See Pub. 590, Individual Retirement
Individual Income Tax Return. If you do
a Roth IRA shown on Form 8606, line 21.
Arrangements, Pub. 575, Pension and
not have other changes, file Form 5329
You received an early distribution from
Annuity Income, and Pub. 970, Tax
by itself (see above).
a qualified retirement plan (other than a
Benefits for Higher Education.
Roth IRA) and, distribution code 1 is not
Definitions
shown in box 7 of Form 1099-R,
Distributions From Pensions, Annuities,
Qualified retirement plan. A qualified
Specific Instructions
Retirement or Profit-Sharing Plans, IRAs,
retirement plan includes:
Insurance Contracts, etc.
A qualified pension, profit-sharing, or
Joint returns. If both you and your
stock bonus plan (including a 401(k)
spouse are required to file Form 5329,
Note: You do not have to file Form 5329
plan),
complete a separate form for each of you.
if distribution code 1 is correctly shown in
A tax-sheltered annuity contract,
Include the combined tax on Form 1040,
box 7 of Form 1099-R. Instead, see the
line 55.
A qualified annuity plan, and
instructions for Form 1040, line 55, for
how to report the 10% additional tax
An IRA.
Amended return. If you are filing an
directly on that line.
amended 2001 Form 5329, check the box
Note: Modified endowment contracts are
You meet an exception to the tax on
at the top of page 1 of the form. Do not
not qualified retirement plans.
early distributions, but the correct
use the 2001 Form 5329 to amend your
Traditional IRAs. For purposes of Form
distribution code for the exception is not
return for any other year. Instead, see
5329, a traditional IRA is any IRA,
shown in box 7 of Form 1099-R.
Prior tax years on this page.
including a simplified employee pension
You received distributions from
(SEP) IRA, other than a SIMPLE IRA or
Coverdell ESAs in excess of your
Part I—Tax on Early
Roth IRA.
qualified higher education expenses.
Distributions
The contributions for 2001 to your
Early distribution. Generally, any
traditional IRAs, Roth IRAs, Coverdell
In general, if you receive an early
distribution from your IRA, other qualified
ESAs, or Archer MSAs are more than is
distribution (including an involuntary
retirement plan, or modified endowment
allowable or you had an excess
cashout) from an IRA, other qualified
contract before you reach age 59
/
is an
1
2
contribution on line 16, 24, 32, or 40 of
retirement plan, or modified endowment
early distribution.
your 2000 Form 5329.
contract, the part of the distribution
Rollover. A rollover is a tax-free
included in income is generally subject to
You did not receive the minimum
distribution of assets from one qualified
a 10% additional tax. But see Exception
required distribution from your qualified
retirement plan that is reinvested in
for Roth IRA Distributions on page 2.
retirement plan.
another plan or the same plan. Generally,
The tax on early distributions does not
If you rolled over part or all of a
you must complete the rollover within 60
apply to:
TIP
distribution from a qualified
days following the distribution. Any
Distributions from a traditional or
retirement plan, the part rolled
taxable amount not rolled over must be
SIMPLE IRA that were converted to a
over is not subject to the tax on early
included in income and may be subject to
Roth IRA;
distributions. See the instructions for
the tax on early distributions.
The distribution of certain excess IRA
Form 1040, lines 15a and 15b or lines
Compensation. Compensation includes
contributions (see the instructions for
16a and 16b, or Form 1040A, lines 11a
wages, salaries, tips, bonuses, and other
lines 15 and 23);
and 11b or 12a and 12b, for how to report
pay you receive for services you perform.
Distributions of excess contributions
the rollover.
It also includes sales commissions,
from a qualified cash or deferred
commissions on insurance premiums,
arrangement;
and pay based on a percentage of profits.
Distributions of excess aggregate
When and Where To File
It includes net earnings from
contributions to meet nondiscrimination
File Form 5329 with your 2001 Form 1040
self-employment, but only for a trade or
requirements for employee contributions
by the due date, including extensions, of
business in which your personal services
and matching employer contributions;
your Form 1040.
are a material income-producing factor.
Distributions of excess deferrals; and
Cat. No. 13330R

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