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The additional tax on early

Example. You converted $20,000 from a

09 IRA distributions made for purchase of a

distributions does not apply to:

traditional IRA to a Roth IRA in 1998 and

•

first home, up to $10,000.

A distribution from a traditional or

converted $10,000 in 1999. Your 1998

SIMPLE IRA that was converted to a Roth

Form 8606 had $5,000 on line 15 and

10 Distributions due to an IRS levy on the

$15,000 on line 16 and your 1999 Form

IRA;

qualified retirement plan.

•

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

A distribution of certain excess IRA

11 Other (see instructions). Also, enter this

on line 16. You made Roth IRA

contributions (see the instructions for

code if more than one exception applies.

contributions of $2,000 for 1998 and

lines 15 and 23);

1999. You did not make any Roth IRA

Note: Any related earnings withdrawn

conversions or contributions for 2000

Other. The following exceptions also

with excess contributions are subject to

through 2003, or take any Roth IRA

apply.

•

the additional tax on early distributions if

distributions before 2003. On July 9,

Distributions incorrectly indicated as

you were under age 59

at the time of

2003, at age 53, you took a $33,000

early distributions by code 1, J, or S in

the distribution.

distribution from your Roth IRA. Your

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

•

A distribution of excess contributions

2003 Form 8606 shows $33,000 on line

the amount you received when you were

from a qualified cash or deferred

19; $29,000 on line 21 ($33,000 minus

age 59

or older.

•

arrangement;

$4,000 for your contributions) and $0 on

Distributions from a plan maintained by

•

A distribution of excess aggregate

line 25 ($29,000 minus your basis in Roth

an employer if:

contributions to meet nondiscrimination

IRA conversions of $30,000). Because

1. You separated from service by

requirements for employee contributions

you do not have an amount on your 2003

March 1, 1986;

and matching employer contributions;

Form 8606, line 23, $4,000 of the $33,000

2. As of March 1, 1986, your entire

•

A distribution of excess deferrals; and

is first allocated to your 2003 Form 8606,

interest was in pay status under a written

•

A distribution from an eligible

line 20; then $15,000 to your 1998 Form

election that provides a specific schedule

governmental section 457 deferred

8606 line 16; $5,000 to your 1998 Form

for distribution of your entire interest; and

compensation plan to the extent the

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

3. The distribution is actually being

distribution is not attributable to an

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

made under the written election.

•

amount transferred from a qualified

is allocated to the $3,000 on your 1999

Distributions that are dividends paid

retirement plan (excluding an eligible

Form 8606, line 15. On line 1, enter

with respect to stock described in section

section 457 deferred compensation plan).

$7,000 ($0 plus the $7,000 that was

404(k).

•

See the instructions for line 2 on this

allocated to your 1999 Form 8606, line

Distributions from annuity contracts to

page for other distributions that are not

16). If you take a Roth IRA distribution in

the extent that the distributions are

subject to the tax.

2004, the first $1,000 will be allocated to

allocable to the investment in the contract

the $1,000 remaining from your 1999

before August 14, 1982.

Line 1

Form 8606, line 15, and will not be

For additional exceptions that apply to

subject to the additional tax on early

Enter the amount of early distributions

annuities, see Pub. 575.

distributions.

included in income that you received

Line 4

from:

Additional Information. For more

•

If any amount on line 3 was a distribution

A qualified retirement plan, including

details, see Are Distributions Taxable?

from a SIMPLE IRA received within 2

earnings on withdrawn excess

in Pub. 590.

years from the date you first participated

contributions to your IRAs included in

Line 2

in the SIMPLE IRA plan, you must

income in 2003 or

•

multiply that amount by 25% instead of

A modified endowment contract

The additional tax on early distributions

10%. These distributions are included in

entered into after June 20, 1988.

does not apply to the distributions

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

Certain prohibited transactions, such

described below. Enter on line 2 the

designated with code S in box 7.

amount that can be excluded. In the

as borrowing from your IRA or pledging

your IRA assets as security for a loan, are

space provided, enter the applicable

Part II—Additional Tax on

considered to be distributions and may

exception number (01-11).

also cause you to owe the additional tax

Certain Distributions From

on early distributions. See Pub. 590 for

No. Exception

Education Accounts

details.

01 Qualified retirement plan distributions

due to separation from service in or after

Line 6

Exception for Roth IRA

the year you reach age 55 (does not

Distributions

This tax does not apply to distributions:

apply to IRAs).

•

Due to the death or disability of the

If you received an early distribution from a

02 Distributions made as part of a series of

beneficiary;

Roth IRA, first allocate the amount on

•

substantially equal periodic payments

Made on account of a tax-free

your 2003 Form 8606, line 19, in the

(made at least annually) for your life (or

scholarship, allowance, or payment

order shown, to the amounts on the lines

life expectancy) or the joint lives (or joint

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

listed below (to the extent a prior year

•

life expectancies) of you and your

From QTPs that were used for the

distribution was not allocable to the

designated beneficiary (if from an

qualified higher education expenses of

amount). Then, include on line 1 of Form

employer plan, payments must begin

the beneficiary;

5329 the amount from your 2003 Form

•

after separation from service).

From QTPs and Coverdell ESAs made

8606, line 25, plus the amount, if any,

because of attendance by the beneficiary

allocated to the amount on your 2003

03 Distributions due to total and permanent

at a U.S. military academy. This

Form 8606, line 23 (include this amount, if

disability.

exception applies only to the extent that

any, on Form 5329, line 2 and enter the

the distribution does not exceed the costs

exception number 09), or 1999 or 2000

04 Distributions due to death (does not

of advanced education (as defined in title

Form 8606, line 16, or 2001, 2002, or

apply to modified endowment contracts).

10 of the U.S. Code) at the academy, or

2003 Form 8606, line 18.

•

05 Qualified retirement plan distributions to

Distributions used for qualified higher

Your 2003 Form 8606, line 23.

•

the extent you have deductible medical

education expenses included in income

Your 2003 Form 8606, line 20.

•

expenses that can be claimed on line 4

because the expenses were used to

Your 1998 Form 8606, line 16.

•

of Schedule A (Form 1040).

figure the Hope and lifetime learning

Your 1998 Form 8606, line 15.

•

credit.

Your 1999 Form 8606, line 16.

06 Qualified retirement plan distributions

•

Enter on line 6 the portion of line 5 that

Your 1999 Form 8606, line 15.

made to an alternate payee under a

•

is excluded.

Your 2000 Form 8606, line 16.

qualified domestic relations order (does

•

Your 2000 Form 8606, line 15.

not apply to IRAs).

Part III—Additional Tax on

•

Your 2001 Form 8606, line 18.

•

07 IRA distributions made to unemployed

Your 2001 Form 8606, line 17.

Excess Contributions to

•

individuals for health insurance

Your 2002 Form 8606, line 18.

premiums.

•

Traditional IRAs

Your 2002 Form 8606, line 17.

•

Your 2003 Form 8606, line 18.

08 IRA distributions made for higher

If you contributed more for 2003 than is

•

Your 2003 Form 8606, line 17.

education expenses.

allowable or you had an amount on line

•

Your 2003 Form 8606, line 25.

17 of your 2002 Form 5329, you may owe

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Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2003 Page 2

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