Instructions For Form 5329 Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2004


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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.
exception does not apply to the entire
A qualified annuity plan, and
General Instructions
You received taxable distributions
For purposes of the additional tax on
What’s New
from Coverdell ESAs or QTPs.
early distributions, an eligible
The contributions for 2004 to your
If your Form 1099-R has a
governmental section 457 deferred
traditional IRAs, Roth IRAs, Coverdell
distribution code 1 in box 7 and you
compensation plan is treated as a
ESAs, Archer MSAs, or HSAs exceed
qualify for an exception to the additional
qualified retirement plan, but only to the
your maximum contribution limit, or you
10% tax, you are required to file Form
extent that a distribution is attributable
had a tax due from an excess
to an amount transferred from a
contribution on line 17, 25, 33, or 41 of
There is an additional 6% tax on
qualified retirement plan (as defined
your 2003 Form 5329.
excess contributions to health savings
You did not receive the minimum
Note. Modified endowment contracts
required distribution from your qualified
Enter exception number 11 on line 2
are not qualified retirement plans.
retirement plan.
for certain distributions from section
Traditional IRAs. For purposes of
457 plans.
If you rolled over part or all of a
Form 5329, a traditional IRA is any IRA,
distribution from a qualified
including a simplified employee pension
Purpose of Form
retirement plan, the part rolled
(SEP) IRA, other than a SIMPLE IRA or
over is not subject to the additional tax
Use Form 5329 to report additional
Roth IRA.
on early distributions. See the
taxes on:
Early distribution. Generally, any
instructions for Form 1040, lines 15a
Individual retirement arrangements
distribution from your IRA, other
and 15b or lines 16a and 16b, or Form
qualified retirement plan, or modified
1040A, lines 11a and 11b or 12a and
Other qualified retirement plans,
endowment contract before you reach
12b, for how to report the rollover.
Modified endowment contracts,
age 59
is an early distribution.
Coverdell ESAs,
When and Where To File
Qualified tuition programs (QTPs),
Rollover. A rollover is a tax-free
Archer MSAs, or
distribution of assets from one qualified
File Form 5329 with your 2004 Form
Health savings accounts (HSAs).
retirement plan that is reinvested in
1040 by the due date, including
another plan or the same plan.
extensions, of your Form 1040.
Who Must File
Generally, you must complete the
If you do not have to file a 2004
rollover within 60 days following the
You must file Form 5329 if any of the
income tax return, complete and file
distribution. Any taxable amount not
following apply.
Form 5329 by itself at the time and
rolled over must be included in income
You received an early distribution
place you would be required to file
and may be subject to the additional tax
from a Roth IRA and the amount on
Form 1040. Be sure to include your
on early distributions.
Form 8606, line 23, is more than zero.
address on page 1 and your signature
You received an early distribution
The IRS may waive the 60-day
and the date on page 2. Enclose, but
from a qualified retirement plan (other
requirement if failing to waive it would
do not attach, a check or money order
than a Roth IRA) and distribution code
be against equity or good conscience,
payable to “United States Treasury” for
1 is not shown in box 7 of Form
such as situations where a casualty,
any taxes due. Write your SSN and
1099-R, Distributions From Pensions,
disaster, or other events beyond your
“2004 Form 5329” on the check.
Annuities, Retirement or Profit-Sharing
reasonable control prevented you from
Prior tax years. If you are filing Form
Plans, IRAs, Insurance Contracts, etc.
meeting the 60-day requirement. Also,
5329 for a prior year, you must use that
the 60-day period may be extended if
Note. You do not have to file Form
year’s version of the form. If you do not
you had a frozen deposit. See Pub.
5329 if distribution code 1 is correctly
have other changes, file Form 5329 by
590, Individual Retirement
shown in box 7 of all Forms 1099-R
itself (see above). If you have other
Arrangements (IRAs), for details.
and you owe the additional tax on each
changes, file Form 5329 for that year
Form 1099-R. Instead, see the
Compensation. Compensation
with Form 1040X, Amended U.S.
instructions for Form 1040, line 59, for
includes wages, salaries, tips, bonuses,
Individual Income Tax Return.
how to report the additional 10% tax
and other pay you receive for services
directly on that line.
you perform. It also includes sales
You meet an exception to the tax on
commissions, commissions on
early distributions and distribution code
Qualified retirement plan. A qualified
insurance premiums, and pay based on
1 is shown in box 7 of Form 1099-R.
retirement plan includes:
a percentage of profits. It includes net
You meet an exception to the tax on
A qualified pension, profit-sharing, or
earnings from self-employment, but
early distributions from the list on page
stock bonus plan (including a 401(k)
only for a trade or business in which
2 but box 7 of your Form 1099-R does
your personal services are a material
not indicate an exception or the
A tax-sheltered annuity contract,
income-producing factor.
Cat. No. 13330R


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