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Specific Line Instructions

on the date you first began participating in the plan, the portion included in income

is subject to an additional 6% tax.)

Private Mail Box (PMB)

Rollover – A tax-free distribution (withdrawal) of assets from one qualified

Include the PMB in the address field. Write “PMB” first, then the box number.

retirement plan that is contributed to another plan. You must complete the rollover

Example: 111 Main Street PMB 123.

within 60 days following the distribution for it to qualify for tax-free treatment. Any

Part I — Additional Tax on Early Distributions

taxable amount not rolled over within 60 days should be included in income and

may be subject to an additional 2½% tax. Get federal Publication 590 for more

Line 1 – Early Distributions Included in Income

information.

Qualified Retirement Plans (including IRAs). Enter the amount of early

Effective for taxable years beginning on or after January 1, 2007, the IRS allows

distributions included in income that you received from a qualified retirement

a one-time rollover from an IRA to a HSA. California does not conform to this

plan, including traditional IRAs and Roth IRAs (and income earned on excess

provision. Under California law any distribution from an IRA to a HSA must

contributions to your IRAs), before you reached age 59½. The amount of the

be added to adjusted gross income (AGI) on the taxpayer’s California return

early distributions you must include in income for California purposes may differ

and would be subject to a 2½% additional tax under the rules for premature

from the amount reported on your federal return if the amount of contributions

distributions under IRC Section 72.

you deducted for California was different than the federal amount. A nonresident

Federal law allows an exception of additional tax on qualified recovery assistance

or former nonresident will no longer receive a stepped-up basis for annual

distributions. California does not conform to federal law regarding qualified

contributions and earnings attributable to periods of nonresidency. You must

recovery assistance distributions.

report the difference on Schedule CA (540) or Schedule CA (540NR).

Tax on Early Distributions. The tax on early distributions from qualified retirement

For Long Form 540NR filers, the amount entered on line 1 is the taxable amount of

plans does not apply to any of the following:

early distributions reported on Schedule CA (540NR), line 15 or line 16.

•

2013 IRA contributions withdrawn during the year or 2012 excess

Annuity Contracts. If you receive any distributions from an annuity contract before

contributions withdrawn in 2013 before the filing date (including extensions)

reaching age 59½, such amounts also may be subject to an additional 2½% tax on

of your 2012 income tax return.

the portion which is includible in income. Refer to IRC Section 72(q) and federal

•

Excess IRA contributions for years before 2012 that were withdrawn in

Publication 575, Pension and Annuity Income, for more information. Enter on

2013, and 2012 excess contributions withdrawn after the due date (including

line 1 the distribution included in income.

extensions) of your 2012 income tax return, if no deduction was allowed for

Modified Endowment Contracts. In general, if before reaching age 59½ you

the excess contributions, and the total IRA contributions for the taxable year

received any distributions from a modified endowment contract, as defined in

for which the excess contributions were made were not more than $5,000 or

IRC Section 7702A and entered into after June 20, 1988, such amounts also are

$6,000 if age 50 or older at the end of 2012 (or if the total contributions for the

year included employer contributions to a SEP IRA, increase the $5,000 by the

subject to an additional 2½% tax on the part of the distribution that is includible in

smaller of the amount of the employer contributions to the SEP or $49,000),

income. Enter the distribution included in income on line 1.

for taxable years before 2002, refer to federal Form 5329 instructions.

Prohibited Transactions. If you borrow from your individual retirement account

•

The part of your IRA distributions that represents a return of nondeductible

or annuity, or pledge your individual retirement annuity as security for a loan, your

IRA contributions figured on federal Form 8606.

account or annuity no longer qualified as an IRA on the first day of the tax year in

•

The part of your IRA distribution that represents a return of nondeductible

which you did the borrowing or pledging. You are considered to have received a

contributions made before 1987.

distribution of the entire value of your account or annuity at that time. Using your

•

Distributions from a traditional IRA that are converted to a Roth IRA.

IRA as a basis for obtaining a benefit also is a prohibited transaction. If you were

•

Distributions rolled over to another retirement arrangement or plan.

under age 59½ on the first day of the taxable year, enter on line 1 the entire value

•

Distributions of excess contributions from a qualified cash or deferred

of the account that represents taxable income.

arrangement.

•

Distributions of excess aggregate contributions to meet nondiscrimination

Pledging of Account. If, during your taxable year, you use any part of your IRA as

requirements for employer matching and employee contributions.

security for a loan, that part is considered distributed to you at the time pledged.

•

Distributions of excess deferrals.

If you were under age 59½ at the time of the pledge, enter the amount pledged on

•

Amounts distributed from unfunded deferred compensation plans of tax-

line 1.

exempt or state and local government employers. (IRC Section 457 plans.)

Collectibles. If your IRA invested funds in collectibles, you are considered to have

See the instructions for line 2 for other distributions that are not subject to the tax.

received a distribution equal to the cost of any “collectible.” Collectibles include

Coverdell ESAs – A trust or custodial account described in IRC Section 530 that is

works of art, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages,

created or organized in the United States exclusively for the purpose of paying the

and certain other tangible personal property. The cost of any collectible in which

qualified higher education expenses of the designated beneficiary of the account.

you invested funds of your IRA in 2013 is deemed to be a distribution to you in

2013. If you were under age 59½ when the funds were invested, enter on line 1 the

Taxpayers may deposit up to $2,000 per year for taxable years beginning on or

after 2002 into a Coverdell ESA for a child under age 18. The total contributions

cost of the collectible included in income.

(by all taxpayers) for the child during the taxable year may not exceed $2,000 for

Exception. Your IRA may invest in U.S. one, one-half, one-quarter, and one-

taxable years beginning on or after 2002 and each contributor is subject to the

tenth ounce gold coins and one-ounce silver coins minted by the U.S. Treasury

contributions limit of IRC Section 530(c) based on adjusted gross income.

Department. Your IRA can invest in certain platinum coins and certain gold, silver,

Distributions from a Coverdell ESA that exceed the child’s qualified higher

palladium, and platinum bullion.

education expenses in a tax year are generally subject to income tax and to an

Roth IRA Distributions

additional tax of 2½% (figured in Part II of form FTB 3805P).

If you received an early Roth IRA distribution, you must generally include on line 1 of

For additional information, see federal Publication 970,

Tax Benefits for

form FTB 3805P the amount from your 2013 federal Form 8606, line 19, even if you

Education.

were age 59½. However, the amount to include on line 1 of form FTB 3805P may be

smaller if you have an amount on line 18c of the Roth IRA Worksheet on page 8 of

Archer Medical Savings Accounts (MSAs) – A tax-exempt trust or custodial

your 2001 through 2006 or page 9 of your 2007 through 2013 FTB Pub. 1005.

account set up in the United States exclusively for paying the qualified medical

expenses of the account holder in conjunction with a high deductible health plan.

In this case, you must recompute the amount to include on line 1 of form

Federal law does not treat an RDP individual as a spouse in connection with the tax

FTB 3805P by allocating the amount on your 2013 federal Form 8606, line 19.

The amount on your 2013 federal Form 8606, line 19, is allocable to the amounts

treatment of an Archer MSA.

shown on the following lines, in the order shown (to the extent the amount was

Federal Form 8853, Archer MSAs and Long-Term Insurance Contracts, is used to

not allocable to a distribution from your 1998 federal Form 8606, line 20; your

report general information about new MSAs, to figure your MSA deduction, and to

1999, 2000, 2001 through 2008 federal Form 8606, line 19).

figure your taxable distribution for MSAs. California law is the same as federal law

•

Your 2009 federal Form 8606, line 20; 2010 federal Form 8606, line 27;

regarding MSA contributions and deductions but is different regarding the amount

2011-2013 federal Form 8606, line 20.

of additional tax on MSA distributions not used for qualified medical expenses. The

additional tax is 10% for California.

•

Your 2009 federal Form 8606, line 22; 2010 federal Form 8606, line 29;

2011-2013 federal Form 8606, line 22.

Therefore, for California purposes, there is no separate form to file to report

•

Your 2007-2012 FTB Pub. 1005, page 9, lines 19 and 18c.

general information about new MSAs or to figure your MSA deduction. However,

•

Your 1999-2006 FTB Pub. 1005, page 8, lines 19 and 18c.

if you have a taxable MSA distribution, you must file form FTB 3805P to figure the

•

Your 2013 federal Form 8606, line 25 (completed using California amounts).

additional tax.

For an example of this calculation, get federal Form 5329 instructions for

Exception for Roth IRA Distributions.

Page 2 FTB 3805P Instructions 2013

Instructions For Form Ftb 3805p - Additional Taxes On Qualified Plans (Including Iras) And Other Tax-Favored Accounts - 2013 Page 2

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