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

•

Made on account of a tax-free

over the sum of Form 5329, lines 11

07 IRA distributions made to unemployed

scholarship, allowance, or payment

and 12.

individuals for health insurance

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

premiums.

•

Line 11

From QTPs that were used for the

08 IRA distributions made for higher

qualified higher education expenses of

Enter on line 11 any withdrawals from

education expenses.

the beneficiary;

your traditional IRAs that are included

•

From QTPs and Coverdell ESAs

09 IRA distributions made for purchase of a

in your income. Do not include any

made because of attendance by the

first home, up to $10,000.

withdrawn contributions reported on

beneficiary at a U.S. military academy.

line 12.

10 Distributions due to an IRS levy on the

This exception applies only to the

qualified retirement plan.

extent that the distribution does not

Line 12

11 Other (see instructions). Also, enter this

exceed the costs of advanced

Enter any excess contributions to your

code if more than one exception applies.

education (as defined in title 10 of the

traditional IRAs for 1976 through 2002

U.S. Code) at the academy, or

that you had returned to you in 2004

•

Distributions used for qualified higher

and any 2003 excess contributions that

education expenses included in income

you had returned to you in 2004 after

Other. The following exceptions also

because the expenses were used to

apply.

the due date (including extensions) of

figure the Hope and lifetime learning

•

your 2003 income tax return, that are

Distributions incorrectly indicated as

credit.

included on line 9, if:

early distributions by code 1, J, or S in

•

Enter on line 6 the portion of line 5

You did not claim a deduction for the

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

that is excluded.

excess contribution and no traditional

the amount you received when you

IRA deduction was allowable (without

were age 59

or older.

•

Part III—Additional Tax

regard to the modified AGI limitation)

Distributions from a section 457 plan,

for the excess contribution, and

which are not from a rollover from a

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on Excess Contributions

The total contributions to your

qualified retirement plan.

•

traditional IRAs for the tax year for

to Traditional IRAs

Distributions from a plan maintained

which the excess contributions were

by an employer if:

If you contributed more for 2004 than is

made were not more than: (a) $3,000

1. You separated from service by

allowable or you had an amount on line

for 2003 ($3,500 if age 50 or older at

March 1, 1986;

17 of your 2003 Form 5329, you may

the end of 2003), (b) $3,000 for 2002

2. As of March 1, 1986, your entire

owe this tax. But you may be able to

($3,500 if age 50 or older at the end of

interest was in pay status under a

avoid the tax on any 2004 excess

2002), (c) $2,000 for years after 1996

written election that provides a specific

contributions (see the instructions for

and before 2002, or (d) $2,250 for

schedule for distribution of your entire

line 15).

years before 1997. If the total

interest; and

contributions for the year included

Line 9

3. The distribution is actually being

employer contributions to a SEP,

made under the written election.

Enter the amount from line 16 of your

increase that amount by the smaller of

•

Distributions that are dividends paid

2003 Form 5329 only if the amount on

the amount of the employer

with respect to stock described in

line 17 of your 2003 Form 5329 is more

contributions or $40,000 ($35,000 for

section 404(k).

than zero.

2001, or $30,000 for years before

•

Distributions from annuity contracts

2001).

Line 10

to the extent that the distributions are

Line 15

allocable to the investment in the

If you contributed less to your

contract before August 14, 1982.

traditional IRAs for 2004 than your

Enter the excess of your contributions

contribution limit for traditional IRAs,

to traditional IRAs for 2004 (unless

For additional exceptions that apply

enter the difference.

withdrawn — see below) over your

to annuities, see Pub. 575.

contribution limit for traditional IRAs.

If you are not married filing jointly,

See the instructions for line 10 to figure

Line 4

your contribution limit for traditional

IRAs is the smaller of your taxable

If any amount on line 3 was a

IRAs. Any amount you contribute for

compensation (see page 1) or $3,000

distribution from a SIMPLE IRA

the year in which you reach age 70

($3,500 if age 50 or older at the end of

received within 2 years from the date

a later year is an excess contribution

2004). If you are married filing jointly,

you first participated in the SIMPLE IRA

because your contribution limit is zero.

your contribution limit is generally

plan, you must multiply that amount by

Do not include rollovers in figuring your

$3,000 ($3,500 if age 50 or older at the

25% instead of 10%. These

excess contributions.

end of 2004) and your spouse’s

distributions are included in boxes 1

contribution limit is $3,000 ($3,500 if

and 2a of Form 1099-R and are

You can withdraw some or all of your

age 50 or older at the end of 2004). But

designated with code S in box 7.

excess contributions for 2004 and they

if the combined taxable compensation

will not be treated as having been

for you and your spouse is less than

contributed if:

Part II—Additional Tax

$6,000 ($6,500 if one spouse is 50 or

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You make the withdrawal by the due

older at the end of 2004; $7,000 if both

on Certain Distributions

date, including extensions, of your 2004

spouses are 50 or older at the end of

tax return,

From Education

•

2004), see How Much Can Be

You do not claim a traditional IRA

Contributed? in Pub. 590 for special

deduction for the withdrawn

Accounts

rules.

contribution, and

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Also include on line 9a or 9b of the

You withdraw any earnings on the

Line 6

IRA Deduction Worksheet in the

withdrawn contribution and include the

This tax does not apply to distributions:

instructions for Form 1040, line 25, the

earnings in gross income (see the

•

Due to the death or disability of the

smaller of (a) Form 5329, line 10, or (b)

Instructions for Form 8606 for details).

beneficiary;

the excess, if any, of Form 5329, line 9,

Also, if you had not reached age 59

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Instructions For Form 5329 Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2004 Page 3

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