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requirements for employee

For more information about the

a Roth IRA, including how to calculate it,

contributions and matching employer

recapture amount for early distributions

see Ordering Rules for Distributions

contributions.

from a designated Roth account,

under Are Distributions Taxable? in

A distribution from an eligible

including how to calculate it, see Tax on

chapter 2 of Pub. 590-B. Also, see

governmental section 457 deferred

Early Distributions under Special

Example

next, which illustrates a

compensation plan to the extent the

Additional Taxes in Pub. 575.

situation where a taxpayer must include

distribution isn’t attributable to an

a recapture amount on line 1.

Distributions from Roth IRAs. If you

amount transferred from a qualified

Example. You converted $20,000

received an early distribution from your

retirement plan.

from a traditional IRA to a Roth IRA in

Roth IRAs, include on line 1 the part of

2013 and converted $10,000 in 2014.

the distribution that you must include in

See the instructions for

line

2, later,

Your 2013 Form 8606 had $5,000 on

your income. You will find this amount

for other distributions that aren’t subject

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

on line 25c of your 2017 Form 8606.

to the additional tax.

2014 Form 8606 had $3,000 on line 17

You will also need to include on line 1

Line 1

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

the following amounts.

IRA contributions of $2,000 for 2013

A qualified first-time homebuyer

Enter the amount of early distributions

and 2014. You didn’t make any Roth

distribution from line 20 of your 2017

included in income that you received

IRA conversions or contributions for

Form 8606. Also include this amount on

from:

2015 through 2017, or take any Roth

line 2 and enter exception number 09.

A qualified retirement plan, including

IRA distributions before 2017.

Recapture amounts attributable to

earnings on withdrawn excess

any conversions or rollovers to your

On July 10, 2017, at age 53, you took

contributions to your IRAs included in

Roth IRAs in 2013 through 2017. See

a $33,000 distribution from your Roth

income in 2017, or

Recapture amount subject to the

IRA. Your 2017 Form 8606 shows

A modified endowment contract.

additional tax on early distributions

next.

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

Certain prohibited transactions

($33,000 minus $4,000 for your

If you didn’t have a qualified

involving your IRA, such as borrowing

contributions on line 22) and $0 on

first-time homebuyer distribution

TIP

from your IRA or pledging your IRA

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

in 2017, and you didn’t convert

assets as security for a loan, are

conversions of $30,000).

or roll over an amount to your Roth IRAs

considered to be distributions and are

in 2013 through 2017, you only need to

First, $4,000 of the $33,000 is

generally subject to the additional tax on

include the amount from line 25c of your

allocated to your 2017 Form 8606,

early distributions. See Prohibited

2017 Form 8606 on line 1 of this form.

line 22; then $15,000 to your 2013 Form

Transactions under What Acts Result in

8606, line 18; $5,000 to your 2013 Form

Penalties or Additional Taxes? in Pub.

Recapture amount subject to the

8606, line 17; and $7,000 to your 2014

590-B for details.

additional tax on early distributions.

Form 8606, line 18. The remaining

If you converted or rolled over an

$2,000 is allocated to the $3,000 on

Distributions from a designated

amount to your Roth IRAs in 2013

your 2014 Form 8606, line 17. On line 1,

Roth account. If you received an early

through 2017 and you received an early

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

distribution from your designated Roth

distribution for 2017, the recapture

your 2013 Form 8606, line 18, plus the

account, include on line 1 the amount of

$7,000 that was allocated to your 2014

amount you must include on line 1 is the

the distribution that you must include in

Form 8606, line 18).

amount, if any, of the early distribution

your income. You will find this amount in

allocated to the taxable portion of your

box 2a of your 2017 Form 1099-R. You

If you take a Roth IRA distribution in

2013 through 2017 conversions or

may also need to include a recapture

2018, the first $1,000 will be allocated to

rollovers.

amount on line 1 if you have ever made

the $1,000 remaining from your 2014

an in-plan Roth rollover (discussed

Generally, an early distribution is

Form 8606, line 17, and won’t be

later).

allocated to your Roth IRA contributions

subject to the additional tax on early

first, then to your conversions and

distributions.

If you never made an in-plan

rollovers on a first-in, first-out basis. For

Roth rollover, you need to

Additional information. For more

TIP

each conversion or rollover, you must

include on line 1 of this form

details, see Are Distributions Taxable?

first allocate the early distribution to the

only the amount from box 2a of your

in chapters 1 and 2 of Pub. 590-B.

portion that was subject to tax in the

2017 Form 1099-R reporting the early

Line 2

year of the conversion or rollover, and

distribution.

then to the portion that wasn’t subject to

The additional tax on early distributions

tax. The recapture amount is the sum of

Recapture amount subject to the

doesn’t apply to the distributions

the early distribution amounts that you

additional tax on early distributions.

described next. Enter on line 2 the

allocate to these taxable portions of

If you have ever made an in-plan Roth

amount that you can exclude. In the

your conversions or rollovers.

rollover and you received an early

space provided, enter the applicable

distribution for 2017, the recapture

The recapture amount that you must

exception number (01–12). If more than

amount to include on line 1 is a portion

include on line 1 won’t exceed the

one exception applies, enter 12.

of the amounts you rolled over.

amount of your early distribution; and,

for purposes of determining this

The recapture amount that you must

recapture amount, you will allocate a

include on line 1 won’t exceed the

contribution, conversion, or rollover

amount of your early distribution; and,

amount (or portion thereof) to an early

for purposes of determining this

distribution only once.

recapture amount, you will allocate a

rollover amount (or portion thereof) to an

For more information about the

early distribution only once.

recapture amount for distributions from

Instructions for Form 5329 (2017)

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Instructions For Form 5329 - Additional Taxes On Qualified Plans (Including Iras) And Other Tax-Favored Accounts - 2017 Page 3

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