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To pay outstanding obligations due

Other. The following exceptions also

Exceptions to the Additional Tax

for qualified disability expenses of the

apply.

on Early Distributions

designated beneficiary, including a

Distributions incorrectly indicated as

claim filed by a state under a state

early distributions by code 1, J, or S in

Medicaid plan.

No. Exception

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

the amount you received when you

Line 6

01 Qualified retirement plan distributions

were age 59

or older.

(doesn’t apply to IRAs) you receive

1 2

The additional tax doesn’t apply to the

Distributions from a section 457 plan,

after separation from service when

distributions that are includible in

which aren’t from a rollover from a

the separation from service occurs in

income described next. Enter on line 6

qualified retirement plan.

or after the year you reach age 55

the amount from line 5 that you can

Distributions from a plan maintained

(age 50 for qualified public safety

exclude.

by an employer if:

employees).

Distributions made due to the death

1. You separated from service by

02 Distributions made as part of a series

or disability of the beneficiary.

March 1, 1986;

of substantially equal periodic

Distributions from an education

payments (made at least annually) for

2. As of March 1, 1986, your entire

account made on account of a tax-free

your life (or life expectancy) or the

interest was in pay status under a

scholarship, allowance, or payment

joint lives (or joint life expectancies)

written election that provides a specific

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

of you and your designated

schedule for the distribution of your

Distributions from an education

beneficiary (if from an employer plan,

entire interest; and

account made because of attendance

payments must begin after separation

by the beneficiary at a U.S. military

3. The distribution is actually being

from service).

academy. This exception applies only to

made under the written election.

the extent that the distribution doesn’t

03 Distributions due to total and

Distributions that are dividends paid

exceed the costs of advanced

permanent disability. You are

with respect to stock described in

education (as defined in title 10 of the

considered disabled if you can furnish

section 404(k).

U.S. Code) at the academy.

proof that you can’t do any

Distributions from annuity contracts to

substantial gainful activity because of

Distributions from an education

the extent that the distributions are

your physical or mental condition. A

account included in income because

allocable to the investment in the

medical determination that your

you used the qualified education

contract before August 14, 1982. For

condition can be expected to result in

expenses to figure the American

additional exceptions that apply to

death or to be of long, continued, and

opportunity and lifetime learning credits.

annuities, see Tax on Early Distributions

indefinite duration must be made.

under Special Additional Taxes in Pub.

Part III—Additional Tax on

04 Distributions due to death (doesn’t

575.

Excess Contributions to

apply to modified endowment

Distributions that are phased

contracts).

retirement annuity payments made to

Traditional IRAs

federal employees. See Pub. 721 for

05 Qualified retirement plan distributions

If you contributed more for 2017 than is

more information on the phased

up to the amount you paid for

allowable or you had an amount on

retirement program.

unreimbursed medical expenses

line 17 of your 2016 Form 5329, you

during the year minus 7.5% of your

Line 4

may owe this tax. But you may be able

adjusted gross income (AGI) for the

to avoid the tax on any 2017 excess

If any amount on line 3 was a

year.

contributions (see the instructions for

distribution from a SIMPLE IRA received

line

15, later).

06 Qualified retirement plan distributions

within 2 years from the date you first

made to an alternate payee under a

participated in the SIMPLE IRA plan,

Line 9

qualified domestic relations order

you must multiply that amount by 25%

Enter the amount from line 16 of your

(doesn’t apply to IRAs).

instead of 10%. These distributions are

2016 Form 5329 only if the amount on

included in boxes 1 and 2a of Form

07 IRA distributions made to certain

line 17 of your 2016 Form 5329 is more

1099-R and are designated with code S

unemployed individuals for health

than zero.

in box 7.

insurance premiums.

Line 10

08 IRA distributions made for qualified

Part II—Additional Tax on

Enter the difference, if any, of your

higher education expenses.

Certain Distributions From

contribution limit for traditional IRAs less

09 IRA distributions made for the

Education Accounts and

your contributions to traditional IRAs

purchase of a first home, up to

and Roth IRAs for 2017.

ABLE Accounts

$10,000.

If you aren’t married filing jointly, your

10 Qualified retirement plan distributions

Line 5

contribution limit for traditional IRAs is

made due to an IRS levy.

the smaller of your taxable

Distributions from an ABLE account

11 Qualified distributions to reservists

compensation

(defined earlier) or

aren’t included in income if made on or

while serving on active duty for at

$5,500 ($6,500 if age 50 or older at the

after the death of the designated

least 180 days.

end of 2017). If you are married filing

beneficiary:

12 Other (see

Other

next). Also, enter

jointly, your contribution limit is generally

To the estate of the designated

this code if more than one exception

$5,500 ($6,500 if age 50 or older at the

beneficiary,

applies.

end of 2017) and your spouse's

To an heir or legatee of the

contribution limit is $5,500 ($6,500 if

designated beneficiary, or

age 50 or older at the end of 2017). But

if the combined taxable compensation

-4-

Instructions for Form 5329 (2017)

Instructions For Form 5329 - Additional Taxes On Qualified Plans (Including Iras) And Other Tax-Favored Accounts - 2017 Page 4

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