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be against equity or good conscience,

The additional tax on early

Your 1999 Form 8606, line 16.

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such as situations where a casualty,

distributions does not apply to any of

Your 1999 Form 8606, line 15.

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disaster, or other events beyond your

the following:

Your 2000 Form 8606, line 16.

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reasonable control prevented you from

A qualified disaster recovery

Your 2000 Form 8606, line 15.

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meeting the 60-day requirement. Also,

assistance distribution. See Form 8930

Your 2001 Form 8606, line 18.

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the 60-day period may be extended if

for more details.

Your 2001 Form 8606, line 17.

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you had a frozen deposit. See Pub. 590

A qualified HSA funding distribution

Your 2002 Form 8606, line 18.

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for details.

from an IRA (other than a SEP or

Your 2002 Form 8606, line 17.

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SIMPLE IRA). See Pub. 969 for details.

Your 2003 Form 8606, line 18.

Compensation. Compensation

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A distribution from a traditional or

Your 2003 Form 8606, line 17.

includes wages, salaries, tips, bonuses,

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SIMPLE IRA that was converted to a

Your 2004 Form 8606, line 18.

and other pay you receive for services

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Roth IRA.

Your 2004 Form 8606, line 17.

you perform. It also includes sales

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A rollover from a qualified retirement

Your 2005 Form 8606, line 18.

commissions, commissions on

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plan to a Roth IRA.

Your 2005 Form 8606, line 17.

insurance premiums, and pay based on

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A distribution of certain excess IRA

Your 2006 Form 8606, line 18.

a percentage of profits. It includes net

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contributions (see the instructions for

Your 2006 Form 8606, line 17.

earnings from self-employment, but

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lines 15 and 23 on page 4).

Your 2007 Form 8606, line 18.

only for a trade or business in which

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Your 2007 Form 8606, line 17.

Note. Any related earnings withdrawn

your personal services are a material

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Your 2008 Form 8606, line 18.

with excess contributions are subject to

income-producing factor.

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Your 2008 Form 8606, line 17.

the additional tax on early distributions

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For IRAs, treat nontaxable combat

Your 2009 Form 8606, line 18.

if you were under age 59

at the time

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pay and any differential wage

Your 2009 Form 8606, line 17.

of the distribution.

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payments, and all taxable alimony

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Your 2009 Form 8606, line 25c.

A distribution of excess contributions

received under a decree of divorce or

*If applicable, reduce this amount by

from a qualified cash or deferred

separate maintenance as

any amounts attributable to qualified

arrangement.

compensation.

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disaster recovery assistance

A distribution of excess aggregate

distributions.

Compensation does not include any

contributions to meet nondiscrimination

amounts received as a pension or

Then, include on line 1 of Form 5329

requirements for employee

annuity and does not include any

the amount from your 2009 Form 8606,

contributions and matching employer

amount received as deferred

line 25c, plus the amount, if any,

contributions.

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compensation.

A distribution of excess deferrals.

allocated to the amount on your 2009

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A distribution from an eligible

Form 8606, line 20, and the amount, if

Taxable compensation is your

governmental section 457 deferred

any, allocated to line 18 of your 2005

compensation that is included in gross

compensation plan to the extent the

through 2009 Forms 8606. Also include

income reduced by any deductions on

distribution is not attributable to an

the amount, if any, from your 2009

Form 1040, lines 27 and 28, or on Form

amount transferred from a qualified

Form 8606, line 20, on Form 5329, line

1040NR, line 27, but not by any loss

retirement plan (excluding an eligible

2, and enter exception number 09.

from self-employment.

section 457 deferred compensation

Example. You converted $20,000

plan).

Additional Information

from a traditional IRA to a Roth IRA in

2005 and converted $10,000 in 2006.

See the instructions for line 2 on

See Pub. 590; Pub. 560, Retirement

Your 2005 Form 8606 had $5,000 on

page 3 for other distributions that are

Plans for Small Business; Pub. 575;

line 17 and $15,000 on line 18 and your

not subject to the tax.

Pub. 969, Health Savings Accounts and

2006 Form 8606 had $3,000 on line 17

Other Tax-Favored Health Plans; Pub.

Line 1

and $7,000 on line 18. You made Roth

970, Tax Benefits for Education; and

IRA contributions of $2,000 for 2005

Enter the amount of early distributions

Pub. 4492-B, Information for Affected

and 2006. You did not make any Roth

included in income that you received

Taxpayers in the Midwestern Disaster

IRA conversions or contributions for

from:

Areas.

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2007 through 2009, or take any Roth

A qualified retirement plan, including

IRA distributions before 2009. On July

earnings on withdrawn excess

9, 2009, at age 53, you took a $33,000

contributions to your IRAs included in

Specific Instructions

distribution from your Roth IRA. Your

income in 2009, or

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2009 Form 8606 shows $33,000 on line

A modified endowment contract

Joint returns. If both you and your

19; $29,000 on line 23 ($33,000 minus

entered into after June 20, 1988.

spouse are required to file Form 5329,

$4,000 for your contributions on line 22)

Certain prohibited transactions, such

complete a separate form for each of

and $0 on line 25a ($29,000 minus your

as borrowing from your IRA or pledging

you. Include the combined tax on Form

basis in conversions of $30,000). First,

your IRA assets as security for a loan,

1040, line 58.

$4,000 of the $33,000 is allocated to

are considered to be distributions and

your 2009 Form 8606, line 22; then

Amended returns. If you are filing an

may also cause you to owe the

$15,000 to your 2005 Form 8606, line

amended 2009 Form 5329, check the

additional tax on early distributions. See

18; $5,000 to your 2005 Form 8606,

box at the top of page 1 of the form. Do

Pub. 590 for details.

line 17; and $7,000 to your 2006 Form

not use the 2009 Form 5329 to amend

Exception for Roth IRA

8606, line 18. The remaining $2,000 is

your return for any other year. Instead,

Distributions

allocated to the $3,000 on your 2006

see Prior tax years on page 1.

Form 8606, line 17. On line 1, enter

If you received an early distribution

Part I—Additional Tax

$22,000 ($15,000 allocated to your

from a Roth IRA, first allocate the

2005 Form 8606, line 18, plus the

amount on your 2009 Form 8606, line

on Early Distributions

$7,000 that was allocated to your 2006

19 (not including any qualified disaster

Form 8606, line 18). If you take a Roth

In general, if you receive an early

recovery assistance distributions), in

IRA distribution in 2010, the first $1,000

distribution (including an involuntary

the order shown, to the amounts on the

will be allocated to the $1,000

cashout) from an IRA, other qualified

lines listed below (to the extent a prior

remaining from your 2006 Form 8606,

retirement plan, or modified endowment

year distribution was not allocable to

line 17, and will not be subject to the

contract, the part of the distribution

the amount).

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additional tax on early distributions.

included in income generally is subject

Your 2009 Form 8606, line 20.

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to an additional 10% tax. But see

Your 2009 Form 8606, line 22*.

Additional information. For more

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Exception for Roth IRA Distributions on

Your 1998 Form 8606, line 16.

details, see Are Distributions Taxable?

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this page.

Your 1998 Form 8606, line 15.

in Pub. 590.

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Instructions For Form 5329 - Additional Taxes On Qualified Plans (Including Iras) And Other Tax-Favored Accounts - 2009 Page 2

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