Instructions For Form 5329 (2015) (Page 2 of 8) in pdf

distribution. Any taxable amount not

income reduced by any deductions on

Amended returns. If you are filing an

rolled over must be included in income

Form 1040 or Form 1040NR, lines 27

amended 2015 Form 5329, check the

and may be subject to the 10%

and 28, but not by any loss from

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

additional tax on early distributions.

self-employment.

not use the 2015 Form 5329 to amend

You can roll over (convert) amounts

your return for any other year. For

ABLE rollover. For an ABLE account,

from a qualified retirement plan to a

information about amending a Form

a rollover means a contribution to an

Roth IRA. Any amount rolled over to a

5329 for a prior year, see

Prior tax

ABLE account of a designated

Roth IRA is subject to the same rules for

years, earlier.

beneficiary (or of an eligible individual

converting a traditional IRA to a Roth

who is a member of the family of the

Part I—Additional Tax on

IRA. You must include in your gross

designated beneficiary) of all or a

income distributions from a qualified

Early Distributions

portion of an amount withdrawn from the

retirement plan that you would have had

designated beneficiary's ABLE account.

In general, if you receive an early

to include in income if you had not rolled

The contribution must be made within

distribution (including an involuntary

them into a Roth IRA. Generally, the

60 days of the withdrawal date; and, if

cashout) from an IRA, other qualified

10% additional tax on early distributions

the rollover is to the designated

retirement plan, or modified endowment

does not apply. For more information,

beneficiary's ABLE account, there must

contract, the part of the distribution

see chapter 2 of Pub. 590-A.

have been no rollover to an ABLE

included in income generally is subject

account of that beneficiary within the

The IRS may waive the 60-day

to the 10% additional tax. But see

prior 12 months.

requirement if failing to waive it would

Distributions from a designated Roth

be against equity or good conscience,

account

below and

Distributions from

Program-to-program transfer. For

such as situations where a casualty,

Roth

IRAs, later.

an ABLE account, a

disaster, or other events beyond your

program-to-program transfer includes

The additional tax on early

reasonable control prevented you from

the direct transfer of the entire balance

distributions does not apply to any of the

meeting the 60-day requirement. Also,

of an ABLE account into a second ABLE

following:

the 60-day period may be extended if

account if both accounts have the same

A qualified HSA funding distribution

you had a frozen deposit. See Time

designated beneficiary and the first

from an IRA (other than a SEP or

Limit for Making a Rollover Contribution

ABLE account is closed upon

SIMPLE IRA). See Qualified HSA

under Can You Move Retirement Plan

completion of the transfer. A

funding distribution under Health

Assets? in Pub. 590-A for details.

program-to-program transfer also

Savings Accounts in Pub. 969 for

occurs when part or all of the balance in

In-plan Roth rollover. If you are a

details.

an ABLE account is transferred to the

participant in a 401(k), 403(b), or

A distribution from a traditional or

ABLE account of an eligible individual

governmental 457(b) plan, your plan

SIMPLE IRA that was converted to a

who is a member of the family of the

may permit you to roll over amounts

Roth IRA.

former designated beneficiary, as long

from those plans to a designated Roth

A rollover from a qualified retirement

as no intervening distribution is made to

account within the same plan. The

plan to a Roth IRA.

the designated beneficiary.

rollover of any untaxed amounts must

An in-plan rollover to a designated

be included in income. Generally, the

Roth account.

Additional Information

10% additional tax on early distributions

A distribution of certain excess IRA

does not apply. For more information,

See the following publications for more

contributions (see the instructions for

see In-plan Roth rollovers under

information about the items in these

line

15, later, and the instructions for

Rollovers in Pub. 575.

instructions:

line

23, later).

Pub. 590-A, Contributions to

Compensation. Compensation

Individual Retirement Arrangements

includes wages, salaries, tips, bonuses,

Note. Any related IRA earnings

(IRAs);

and other pay you receive for services

withdrawn with excess IRA contributions

Pub. 590-B, Distributions from

you perform. It also includes sales

are subject to the 10% additional tax on

Individual Retirement Arrangements

commissions, commissions on

early distributions if you were under age

(IRAs);

insurance premiums, and pay based on

at the time of the distribution.

Pub. 560, Retirement Plans for Small

a percentage of profits. It includes net

Business;

earnings from self-employment, but only

A distribution of excess deferrals.

Pub. 575, Pension and Annuity

for a trade or business in which your

Excess deferrals include distributions of

Income;

personal services are a material

excess contributions from a qualified

Pub. 969, Health Savings Accounts

income-producing factor.

cash or deferred arrangement (section

and Other Tax-Favored Health Plans;

401(k) plan), excess contributions from

For IRAs, treat nontaxable combat

Pub. 970, Tax Benefits for

a tax-sheltered annuity (section 403(b)

pay and any differential wage payments,

Education; and

plan), excess contributions from a SEP

and all taxable alimony received under a

Pub. 721, Tax Guide to U.S. Civil

IRA, and excess contributions from a

decree of divorce or separate

Service Retirement Benefits.

SIMPLE IRA.

maintenance as compensation.

A distribution of excess aggregate

Compensation does not include any

Specific Instructions

contributions to meet nondiscrimination

amounts received as a pension or

requirements for employee

annuity and does not include any

Joint returns. If both you and your

contributions and matching employer

amount received as deferred

spouse are required to file Form 5329,

contributions.

compensation.

complete a separate form for each of

A distribution from an eligible

Taxable compensation is your

you. Include the combined tax on Form

governmental section 457 deferred

compensation that is included in gross

1040, line 59.

compensation plan to the extent the

-2-

Instructions for Form 5329 (2015)

Instructions For Form 5329 (2015) Page 2

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