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this tax. But you may be able to avoid the

is an excess contribution because your

Line 20

tax on any 2003 excess contributions

contribution limit is zero. Do not include

Generally, enter the amount from Form

(see the instructions for line 15).

rollovers in figuring your excess

8606, line 19 plus any qualified

contributions.

distributions. But if you withdrew the

Line 9

entire balance of all your Roth IRAs, do

Enter the amount from line 16 of your

You may withdraw some or all of your

not enter less than the amount on Form

2002 Form 5329 only if the amount on

excess contributions for 2003 and they

5329, line 18 (see Example below).

line 17 of your 2002 Form 5329 is more

will not be treated as having been

Example. You contributed $1,000 to a

than zero.

contributed if:

•

Roth IRA in 2001, your only contribution

You make the withdrawal by the due

Line 10

to Roth IRAs. In 2003, you discovered

date, including extensions, of your 2003

If you contributed less to your traditional

you were not eligible to contribute to a

tax return,

IRAs for 2003 than your contribution limit

Roth IRA in 2001. On September 9, 2003,

•

You do not claim a traditional IRA

for traditional IRAs, enter the difference.

you withdrew $800, the entire balance in

deduction for the withdrawn contribution,

the Roth IRA. You must file Form 5329 for

If you are not married filing jointly, your

and

2001 and 2002 to pay the additional taxes

•

contribution limit for traditional IRAs is

You withdraw any earnings on the

for those years. When you complete Form

the smaller of your taxable compensation

withdrawn contribution and include the

5329 for 2003, you enter $1,000 (not

(see page 1) or $3,000 ($3,500 if age 50

earnings in gross income (see the

$800) on line 20, because you withdrew

or older at the end of 2003). If you are

Instructions for Form 8606 for details).

the entire balance.

married filing jointly, your contribution limit

Also, if you had not reached age 59

is generally $3,000 ($3,500 if age 50 or

Line 23

the time of the withdrawal, include the

older at the end of 2003) and your

earnings as an early distribution on line 1

Enter the excess of your contributions to

spouse’s contribution limit is $3,000

of Form 5329 for the year in which you

Roth IRAs for 2003 (unless withdrawn —

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

report the earnings.

see below) over your contribution limit for

2003). But if the combined taxable

Roth IRAs (see the instructions for line

If you timely filed your return without

compensation for you and your spouse is

19).

withdrawing the excess contributions, you

less than $6,000 ($6,500 if one spouse is

may still make the withdrawal no later

Any amounts converted to a Roth IRA

50 or older at the end of 2003; $7,000 if

than 6 months after the due date of your

both spouses are 50 or older at the end of

are excess Roth IRA contributions if your

tax return, excluding extensions. If you

2003), see How Much Can Be

modified AGI for Roth IRA purposes is

do, file an amended return with “Filed

over $100,000 or your filing status is

Contributed? in Pub. 590 for special

pursuant to section 301.9100-2” written at

rules.

married filing separately and you lived

the top. Report any related earnings for

with your spouse at any time in 2003. See

Also include on line 9a or 9b of the

2003 on the amended return and include

Recharacterizations in the Instructions

IRA Deduction Worksheet in the

an explanation of the withdrawal. Make

for Form 8606 for details. Do not include

instructions for Form 1040, line 24, the

any other necessary changes on the

rollovers in figuring your excess

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

amended return (for example, if you

contributions.

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

reported the contributions as excess

over the sum of Form 5329, lines 11 and

You may withdraw some or all of your

contributions on your original return,

12.

excess contributions for 2003 and they

include an amended Form 5329 reflecting

will not be treated as having been

that the withdrawn contributions are no

Line 11

contributed if:

longer treated as having been

•

Enter on line 11 any withdrawals from

You make the withdrawal by the due

contributed).

your traditional IRAs that are included in

date, including extensions, of your 2003

your income. Do not include any

tax return and

•

Part IV—Additional Tax on

withdrawn contributions reported on line

You withdraw any earnings on the

12.

withdrawn contribution and include the

Excess Contributions to

earnings in gross income (see the

Line 12

Roth IRAs

Instructions for Form 8606 for details).

Enter any excess contributions to your

Also, if you had not reached age 59

If you contributed more to your Roth IRA

traditional IRAs for 1976 through 2001

the time of the withdrawal, include the

for 2003 than is allowable or you had an

that you had returned to you in 2003 and

earnings as an early distribution on line 1

amount on line 25 of your 2002 Form

any 2002 excess contributions that you

of Form 5329 for the year in which you

5329, you may owe this tax. But you may

had returned to you in 2003 after the due

report the earnings.

be able to avoid the tax on any 2003

date (including extensions) of your 2002

If you timely filed your return without

excess contributions (see the instructions

income tax return, that are included on

withdrawing the excess contributions, you

for line 23).

line 9, if:

may still make the withdrawal no later

•

You did not claim a deduction for the

than 6 months after the due date of your

Line 18

excess contribution and no traditional IRA

tax return, excluding extensions. If you

Enter the amount from line 24 of your

deduction was allowable (without regard

do, file an amended return with “Filed

2002 Form 5329 only if the amount on

to the modified AGI limitation) for the

pursuant to section 301.9100-2” written at

line 25 of your 2002 Form 5329 is more

excess contribution and

the top. Report any related earnings for

•

than zero.

The total contributions to your

2003 on the amended return and include

traditional IRAs for the tax year for which

an explanation of the withdrawal. Make

Line 19

the excess contributions were made were

any other necessary changes on the

not more than: (a) $3,000 ($3,500 if age

If you contributed less to your Roth IRAs

amended return (for example, if you

50 or older at the end of 2002) for 2002,

for 2003 than your contribution limit for

reported the contributions as excess

(b) $2,000 for years after 1996 and before

Roth IRAs, enter the difference. Your

contributions on your original return,

2002, or (c) $2,250 for years before 1997.

contribution limit for Roth IRAs is

include an amended Form 5329 reflecting

If the total contributions for the year

generally your contribution limit for

that the withdrawn contributions are no

included employer contributions to a SEP,

traditional IRAs (see the instructions for

longer treated as having been

increase that amount by the smaller of the

line 10) reduced by the amount you

contributed).

amount of the employer contributions or

contributed to traditional IRAs. But your

$40,000 ($35,000 for 2001, or $30,000 for

contribution limit for Roth IRAs may be

Part V—Additional Tax on

years before 2001.)

further reduced or eliminated if your

Excess Contributions to

modified AGI for Roth IRA purposes is

Line 15

over:

Coverdell ESAs

•

Enter the excess of your contributions to

$150,000 if married filing jointly or

traditional IRAs for 2003 (unless

If the contributions to your Coverdell

qualifying widow(er),

withdrawn — see below) over your

ESAs for 2003 were more than is

•

$0 if married filing separately and you

contribution limit for traditional IRAs. See

allowable or you had an amount on line

lived with your spouse at any time in

the instructions for line 10 to figure your

33 of your 2002 Form 5329, you may owe

2003, or

contribution limit for traditional IRAs. Any

this tax. But you may be able to avoid the

•

$95,000 for any other taxpayer.

amount you contribute for the year in

tax on any 2003 excess contributions

which you reach age 70

or a later year

See Pub. 590 for details.

(see the instructions for line 31).

-3-

Instructions For Form 5329 - Additional Taxes On Qualified Plans And Other Tax-Favored Accounts - 2003 Page 3

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