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Amounts distributed from unfunded

8606, line 15, and $7,000 to your 1999

Distributions incorrectly indicated as

deferred compensation plans of

Form 8606, line 16. The remaining $2,000

early distributions by code 1, J, or S in

tax-exempt or state and local government

is allocated to the $3,000 on your 1999

box 7 of Form 1099-R. Include on line 2

employers.

Form 8606, line 15. You enter $22,000 on

the amount you received when you were

See the instructions for line 2 on this

line 1 ($29,000 minus the sum of $5,000

age 59

or older.

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page for other distributions that are not

and $2,000). If you take a Roth IRA

Distributions from a plan maintained by

subject to the tax.

distribution in 2002, the first $1,000 will be

an employer if:

allocated to the $1,000 remaining from

Note: Any related earnings withdrawn

1. You separated from service by

your 1999 Form 8606, line 15, and will not

with excess contributions are subject to

March 1, 1986;

be subject to the tax on early

the tax on early distributions if you were

2. As of March 1, 1986, your entire

distributions.

under age 59

at the time of the

interest was in pay status under a written

distribution.

election that provides a specific schedule

Line 2

for distribution of your entire interest; and

Line 1

The tax on early distributions does not

3. The distribution is actually being

apply to the distributions described below.

Enter the amount of early distributions

made under the written election.

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Enter on line 2 the amount that can be

included in income that you received

Distributions that are dividends paid

excluded. In the space provided, enter the

from:

with respect to stock described in section

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applicable exception number (01-11).

A qualified retirement plan, including

404(k).

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earnings on withdrawn excess

Distributions from annuity contracts to

No. Exception

contributions to your IRAs included in

the extent that the distributions are

income in 2001 or

allocable to the investment in the contract

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01 Qualified employee plan distributions

A modified endowment contract

before August 14, 1982.

due to separation from service in or

entered into after June 20, 1988.

For additional exceptions that apply to

after the year you reach age 55.

Certain prohibited transactions, such

annuities, see Pub. 575.

as borrowing from your IRA or pledging

Line 4

your IRA assets as security for a loan, are

02 Distributions made as part of a series

If any amount on line 3 was a distribution

considered to be distributions and may

of substantially equal periodic

from a SIMPLE IRA received within 2

also cause you to owe the tax on early

payments (made at least annually) for

years from the date you first participated

distributions. See Pub. 590 for details.

your life (or life expectancy) or the

in the SIMPLE IRA plan, you must

joint lives (or joint life expectancies) of

Exception for Roth IRA

multiply that amount by 25% instead of

you and your designated beneficiary

Distributions

10%. These distributions are included in

(if from a qualified employee plan,

If you received an early distribution from a

boxes 1 and 2a of Form 1099-R and are

payments must begin after separation

Roth IRA, include on line 1 of Form 5329

designated with code S in box 7.

from service).

the amount from your 2001 Form 8606,

Part II—Tax on Certain

line 21, reduced by the amount, if any,

03 Distributions due to total and

allocable to the amount on your 1998,

Taxable Distributions

permanent disability.

1999, or 2000 Form 8606, line 15, or

From Coverdell Education

2001 Form 8606, line 17. The amount on

04 Distributions due to death (does not

line 21 is allocable, in the order shown, to

Savings Accounts (ESAs)

apply to modified endowment

the amounts on the lines listed below (to

contracts).

the extent a prior year distribution was not

Line 6

allocable to the amount.) See Are

05 Distributions to the extent you have

Distributions From My Roth IRA

This tax does not apply to distributions:

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Taxable? in Pub. 590 for details.

deductible medical expenses that can

Due to the death or disability of the

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Your 1998 Form 8606, line 16.

be claimed on line 4 of Schedule A

beneficiary;

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Your 1998 Form 8606, line 15.

Made on account of a tax-free

(Form 1040) (does not apply to

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Your 1999 Form 8606, line 16.

scholarship, allowance, or payment

annuity contracts or modified

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Your 1999 Form 8606, line 15.

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

endowment contracts).

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Your 2000 Form 8606, line 16.

Included in income solely because you

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Your 2000 Form 8606, line 15.

elected to waive any exclusion you may

06 Qualified employee plan distributions

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Your 2001 Form 8606, line 18.

be entitled to for your 2001 qualified

made to an alternate payee under a

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Your 2001 Form 8606, line 17.

higher education expenses. This election

qualified domestic relations order.

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Your 2001 Form 8606, line 23.

was made by checking the “Yes” box on

line 29 of Form 8606.

Example. You converted $20,000 from a

07 IRA distributions made to unemployed

Enter on line 6 the portion of line 5 that

traditional IRA to a Roth IRA in 1998 and

individuals for health insurance

is excluded.

converted $10,000 in 1999. Your 1998

premiums.

Form 8606 had $5,000 on line 15 and

Part III—Tax on Excess

$15,000 on line 16 and your 1999 Form

08 IRA distributions made for higher

8606 had $3,000 on line 15 and $7,000

Contributions to

education expenses.

on line 16. You made Roth IRA

Traditional IRAs

contributions of $2,000 for 1998 and

09 IRA distributions made for purchase

1999. You did not make any Roth IRA

If you contributed more for 2001 than is

of a first home, up to $10,000.

conversions or contributions for 2000 or

allowable or you had an excess

2001 or take any Roth IRA distributions in

contribution from prior years on line 16 of

10 Distributions due to an IRS levy of the

1998, 1999, or 2000. On July 9, 2001, at

your 2000 Form 5329, you may owe this

qualified retirement plan.

age 53, you took a $33,000 distribution

tax. But you may be able to avoid the tax

from your Roth IRA. The first $4,000 of

on any 2001 excess contributions (see

11 Other (see instructions below).

the distribution is allocated to your two

the instructions for line 15).

$2,000 Roth IRA contributions, and

$29,000 is shown on your 2001 Form

Other. The following exceptions also

8606, line 21. $15,000 of the $29,000 is

apply.

allocated first to your 1998 Form 8606,

line 16, then $5,000 to your 1998 Form

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Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2001 Page 2

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