Instructions For Form 5329 Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2004 Page 4

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at the time of the withdrawal, include
Example. You contributed $1,000 to
Part V—Additional Tax
the earnings as an early distribution on
a Roth IRA in 2002, your only
line 1 of Form 5329 for the year in
on Excess Contributions
contribution to Roth IRAs. In 2004, you
which you report the earnings.
discovered you were not eligible to
to Coverdell ESAs
contribute to a Roth IRA in 2002. On
If you timely filed your return without
September 9, 2004, you withdrew $800,
If the contributions to your Coverdell
withdrawing the excess contributions,
the entire balance in the Roth IRA. You
ESAs for 2004 were more than is
you can still make the withdrawal no
allowable or you had an amount on line
must file Form 5329 for 2002 and 2003
later than 6 months after the due date
33 of your 2003 Form 5329, you may
to pay the additional taxes for those
of your tax return, excluding extensions.
owe this tax. But you may be able to
years. When you complete Form 5329
If you do, file an amended return with
avoid the tax on any 2004 excess
for 2004, you enter $1,000 (not $800)
“Filed pursuant to section 301.9100-2”
contributions (see the instructions for
written at the top. Report any related
on line 20, because you withdrew the
line 31).
earnings for 2004 on the amended
entire balance.
return and include an explanation of the
Line 26
withdrawal. Make any other necessary
Line 23
Enter the amount from line 32 of your
changes on the amended return (for
2003 Form 5329 only if the amount on
example, if you reported the
Enter the excess of your contributions
line 33 of your 2003 Form 5329 is more
contributions as excess contributions
to Roth IRAs for 2004 (unless
than zero.
on your original return, include an
withdrawn — see below) over your
amended Form 5329 reflecting that the
contribution limit for Roth IRAs (see the
Line 27
withdrawn contributions are no longer
instructions for line 19).
Enter the excess, if any, of the
treated as having been contributed).
maximum amount that can be
Any amounts converted to a Roth
contributed to your Coverdell ESAs for
Part IV—Additional Tax
IRA are excess Roth IRA contributions
2004 (see the instructions for line 31)
if your modified AGI for Roth IRA
on Excess Contributions
over the amount actually contributed for
purposes is over $100,000 or your filing
2004.
to Roth IRAs
status is married filing separately and
you lived with your spouse at any time
Line 28
If you contributed more to your Roth
in 2004. See Recharacterizations in the
IRA for 2004 than is allowable or you
Enter your total distributions from
Instructions for Form 8606 for details.
had an amount on line 25 of your 2003
Coverdell ESAs in 2004. Do not include
Do not include rollovers in figuring your
Form 5329, you may owe this tax. But
rollovers or returned excess
excess contributions.
you may be able to avoid the tax on
contributions.
any 2004 excess contributions (see the
Line 31
instructions for line 23).
You can withdraw some or all of your
excess contributions for 2004 and they
Enter the excess of the contributions to
Line 18
will not be treated as having been
your Coverdell ESAs for 2004 (not
Enter the amount from line 24 of your
contributed if:
including rollovers) over your
2003 Form 5329 only if the amount on
contribution limit for Coverdell ESAs.
You make the withdrawal by the due
line 25 of your 2003 Form 5329 is more
Your contribution limit is the smaller of
date, including extensions, of your 2004
than zero.
$2,000 or the sum of the maximum
tax return, and
amounts allowed to be contributed by
You withdraw any earnings on the
Line 19
the contributor(s) to your Coverdell
withdrawn contribution and include the
ESAs. The maximum contribution may
If you contributed less to your Roth
earnings in gross income (see the
be limited based on the contributor’s
IRAs for 2004 than your contribution
Instructions for Form 8606 for details).
modified AGI. See Pub. 970 for details.
limit for Roth IRAs, enter the difference.
Also, if you had not reached age 59
1
/
2
Your contribution limit for Roth IRAs is
You can withdraw some or all of the
at the time of the withdrawal, include
generally your contribution limit for
excess contributions for 2004 and they
the earnings as an early distribution on
traditional IRAs (see the instructions for
will not be treated as having been
line 1 of Form 5329 for the year in
line 10) reduced by the amount you
contributed if:
which you report the earnings.
contributed to traditional IRAs. But your
You make the withdrawal before
contribution limit for Roth IRAs may be
June 1, 2005, and
further reduced or eliminated if your
If you timely filed your return without
You also withdraw any income
modified AGI for Roth IRA purposes is
withdrawing the excess contributions,
earned on the withdrawn contribution
over:
you can still make the withdrawal no
and include the earnings in gross
$150,000 if married filing jointly or
later than 6 months after the due date
income for the year in which the
qualifying widow(er),
of your tax return, excluding extensions.
contribution was made.
$0 if married filing separately and you
If you do, file an amended return with
If you filed your return without
lived with your spouse at any time in
“Filed pursuant to section 301.9100-2”
withdrawing the excess contributions,
2004, or
written at the top. Report any related
you can still make the withdrawal, but it
$95,000 for any other taxpayer.
earnings for 2004 on the amended
must be made before June 1, 2005. If
return and include an explanation of the
See Pub. 590 for details.
you do, file an amended return. Report
withdrawal. Make any other necessary
any related earnings for 2004 on the
Line 20
changes on the amended return (for
amended return and include an
example, if you reported the
Generally, enter the amount from Form
explanation of the withdrawal. Make
contributions as excess contributions
8606, line 19 plus any qualified
any other necessary changes on the
on your original return, include an
distributions. But if you withdrew the
amended return (for example, if you
amended Form 5329 reflecting that the
entire balance of all your Roth IRAs, do
reported the contributions as excess
withdrawn contributions are no longer
not enter less than the amount on Form
contributions on your original return,
treated as having been contributed).
5329, line 18 (see Example).
include an amended Form 5329
-4-

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