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

reflecting that the withdrawn

contributions as excess contributions

your qualified retirement plan, including

contributions are no longer treated as

on your original return, include an

an IRA or an eligible section 457

having been contributed).

amended Form 5329 reflecting that the

deferred compensation plan. The

withdrawn contributions are no longer

additional tax is 50% of the excess

Part VI—Additional Tax

treated as having been contributed).

accumulation — the difference between

the amount that was required to be

Also include on line 39 any excess

on Excess Contributions

distributed and the amount that was

contributions your employer made. See

actually distributed.

to Archer MSAs

Form 8853 for details.

If you or your employer contributed

Required Distributions

Part VII—Additional Tax

more to your Archer MSA for 2004 than

is allowable or you had an amount on

IRA (other than a Roth IRA). You

on Excess Contributions

line 41 of your 2003 Form 5329, you

must start receiving distributions from

may owe this tax. But you may be able

to Health Savings

your IRA by April 1 of the year following

to avoid the tax on any 2004 excess

the year in which you reach age 70

Accounts

contributions (see the instructions for

At that time, you can receive your entire

line 39).

interest in the IRA or begin receiving

If the contributions to your health

periodic distributions. If you choose to

savings account (HSA) exceed your

Line 34

receive periodic distributions, you must

contribution limit, you may owe this tax.

Enter the amount from line 40 of your

receive a minimum required distribution

However, you may be able to avoid this

2003 Form 5329 only if the amount on

each year. You can figure the minimum

tax if the excess contributions are

line 41 of your 2003 Form 5329 is more

required distribution by dividing the

timely removed from your account.

than zero.

account balance of your IRAs (other

Line 42

than Roth IRAs) on December 31 of the

Line 35

year preceding the distribution by the

Enter the excess contributions to your

applicable life expectancy. For

If the contribution limit for your Archer

HSA for 2004 (unless withdrawn — see

applicable life expectancies, see Pub.

MSAs (the smaller of line 5 or line 6 of

below) over your contribution limit. The

590.

Form 8853) is greater than the

instructions for Form 8889 explain how

contributions to your Archer MSAs for

to figure excess contributions.

2004, enter the difference on line 35.

If the trustee, custodian, or issuer of

You can withdraw some or all of the

Also include on line 7 of your 2004

your IRA informs you of the minimum

excess contributions for 2004 and they

Form 8853 the smaller of:

required distribution, you can use that

•

will not be treated as having been

Form 5329, line 35, or

amount.

•

contributed if:

The excess, if any, of Form 5329,

•

You make the withdrawal by the due

line 34, over Form 5329, line 36.

If you have more than one IRA, you

date, including extensions, of your 2004

can take the minimum required

Line 39

return,

distribution from any one or more of the

•

You do not claim an exclusion from

Enter the excess of your contributions

individual IRAs.

income for the amount of the withdrawn

to your Archer MSA for 2004 (from

contributions, and

Form 8853, line 4) over your

•

For more details on the minimum

You also withdraw any earnings on

contribution limit (the smaller of line 5 or

distribution rules (including examples),

the withdrawn contributions and include

line 6 of Form 8853). However, you can

see Pub. 590.

the earnings in your gross income.

withdraw some or all of the excess

contributions for 2004 and they will not

If you timely filed your return without

Roth IRA. There are no minimum

be treated as having been contributed

withdrawing the excess contributions,

required distributions during the lifetime

if:

you can still make the withdrawal no

of the owner of a Roth IRA. Following

•

You make the withdrawal by the due

later than 6 months after the due date

the death of the Roth IRA owner,

date, including extensions, of your 2004

of your tax return, excluding extensions.

required distribution rules apply to the

tax return, and

If you do, file an amended return with

beneficiary. See Pub. 590 for details.

•

You withdraw any income earned on

“Filed pursuant to section 301.9100-2”

the withdrawn contributions and include

written at the top. Report any related

Qualified retirement plans (other

the earnings in gross income for the

earnings for 2004 on the amended

than IRAs) and eligible section 457

year in which you receive the withdrawn

return and include an explanation of the

deferred compensation plans. In

contributions and earnings.

withdrawal. Make any other necessary

general, you must begin receiving

changes on the amended return (for

Include the withdrawn contribution

distributions from your plan no later

example, if you reported the

and related earnings on Form 8853,

than April 1 following the later of (a) the

contributions as excess contributions

lines 8a and 8b.

year in which you reach age 70

or (b)

on your original return, include an

the year in which you retire.

If you timely filed your return without

amended Form 5329 reflecting that the

withdrawing the excess contributions,

withdrawn contributions are no longer

Exception. If you owned more than

you can still make the withdrawal no

treated as having been contributed).

5% of the employer maintaining the

later than 6 months after the due date

plan, you must begin receiving

of your tax return, excluding extensions.

Part VIII—Additional Tax

distributions no later than April 1 of the

If you do, file an amended return with

year following the year in which you

“Filed pursuant to section 301.9100-2”

on Excess Accumulation

reach age 70

, regardless of when you

written at the top. Report any related

in Qualified Retirement

retire.

earnings for 2004 on the amended

return and include an explanation of the

Plans (Including IRAs)

withdrawal. Make any other necessary

Your plan administrator should figure

changes on the amended return (for

You owe this tax if you do not receive

the amount that must be distributed

example, if you reported the

the minimum required distribution from

each year.

-5-

Instructions For Form 5329 Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2004 Page 5

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