2016 Instructions for Form 5329 - Internal Revenue Service

1 2016 Department of the Treasury Internal Revenue Service Instructions for form 5329. Additional Taxes on Qualified Plans (Including IRAs). and Other Tax-Favored Accounts Section references are to the Internal Revenue from a qualified retirement plan (other Instructions for form 1040 or form Code unless otherwise noted. than a Roth IRA), you meet an 1040NR, or go to exception to the tax on early General Instructions distributions from the list shown later, Prior tax years. If you are filing form 5329 for a prior year, you must use the but box 7 of your form 1099-R does not prior year's version of the form .

2 If you do Future Developments indicate an exception or the exception not have any other changes and have For the latest information about does not apply to the entire distribution. not previously filed a federal income tax developments related to form 5329 and You received taxable distributions return for the prior year, file the prior its Instructions , such as legislation from Coverdell ESAs, QTPs, or ABLE. year's version of form 5329 by itself enacted after they were published, go to accounts. (discussed earlier). If you have other The contributions for 2016 to your changes, file form 5329 for the prior traditional IRAs, Roth IRAs, Coverdell year with form 1040X, Amended Purpose of form ESAs, Archer MSAs, HSAs, or ABLE.

3 Individual Income Tax Return. accounts exceed your maximum Use form 5329 to report additional contribution limit, or you had a tax due taxes on: from an excess contribution on line 17, Definitions IRAs, 25, 33, 41, or 49 of your 2015 form Qualified retirement plan. A qualified Other qualified retirement plans, 5329. retirement plan includes: Modified endowment contracts, You did not receive the minimum A qualified pension, profit-sharing, or Coverdell ESAs, required distribution from your qualified stock bonus plan (including a 401(k). QTPs, retirement plan. This also includes trusts plan), Archer MSAs, and estates that did not receive this A tax-sheltered annuity contract, HSAs, or amount.

4 A qualified annuity plan, and ABLE accounts. If you rolled over part or all of a An IRA. Who Must File TIP distribution from a qualified Note. Modified endowment contracts You must file form 5329 if any of the retirement plan, the part rolled are not qualified retirement plans. following apply. over is not subject to the 10% additional You received an early distribution tax on early distributions. See the Traditional IRAs. For purposes of from a Roth IRA, the amount on line 23 Instructions for form 1040, lines 15a form 5329, a traditional IRA is any IRA, of form 8606, Nondeductible IRAs, is and 15b or lines 16a and 16b; form including a simplified employee pension more than zero, and you are required to 1040A, lines 11a and 11b or 12a and (SEP) IRA, other than a SIMPLE IRA or enter an amount that is more than zero 12b; or form 1040NR, lines 16a and Roth IRA.

5 On form 5329, line 1 (see Distributions 16b or 17a and 17b, for how to report Early distribution. Generally, any from Roth IRAs, later). the rollover. distribution from your IRA, other You received an early distribution qualified retirement plan, or modified subject to the tax on early distributions When and Where To File endowment contract before you reach from a qualified retirement plan (other File form 5329 with your 2016 form age 591 2 is an early distribution. than a Roth IRA). However, if 1040 or form 1040NR by the due date, distribution code 1 is correctly shown in Qualified retirement plan or in-plan including extensions, of your form 1040 Roth rollover.

6 Generally, a rollover is a box 7 of all your Forms 1099-R, and you or form 1040NR. owe the additional tax on each form tax-free distribution of assets from one 1099-R, you do not have to file form If you do not have to file a 2016 qualified retirement plan that is 5329. Instead, see the Instructions for income tax return, complete and file reinvested in another plan or the same form 1040, line 59, or form 1040NR, form 5329 by itself at the time and plan. Generally, you must complete the line 57, for how to report the 10% place you would be required to file form rollover within 60 days of receiving the additional tax directly on that line.

7 1040 or form 1040NR. If you file form distribution. Any taxable amount not You received an early distribution 5329 by itself, then it can't be filed rolled over must be included in income subject to the tax on early distributions electronically. Be sure to include your and may be subject to the 10%. from a qualified retirement plan (other address on page 1 of the form and your additional tax on early distributions. than a Roth IRA), you meet an signature and the date on page 2 of the You can roll over (convert) amounts exception to the tax on early form . Enclose, but do not attach, a from a qualified retirement plan to a distributions from the list shown later, check or money order payable to Roth IRA.

8 Any amount rolled over to a and distribution code 1 is shown in United States Treasury for any taxes Roth IRA is subject to the same rules for box 7 of form 1099-R. due. Write your SSN and 2016 form converting a traditional IRA to a Roth You received an early distribution 5329 on the check. For information on IRA. You must include in your gross subject to the tax on early distributions other payment options, including credit income distributions from a qualified or debit card payments, see the Sep 14, 2016 Cat. No. 13330R. retirement plan that you would have had ABLE account of a designated 5329 for a prior year, see Prior tax to include in income if you had not rolled beneficiary (or of an eligible individual years, earlier.)

9 Them into a Roth IRA. Generally, the who is a member of the family of the 10% additional tax on early distributions designated beneficiary) of all or a Part I Additional Tax on does not apply. For more information, portion of an amount withdrawn from the Early Distributions see chapter 2 of Pub. 590-A. designated beneficiary's ABLE account. In general, if you receive an early The IRS may waive the 60-day The contribution must be made within distribution (including an involuntary requirement if failing to waive it would 60 days of the withdrawal date; and, if cashout) from an IRA, other qualified be against equity or good conscience, the rollover is to the designated retirement plan, or modified endowment such as situations where a casualty, beneficiary's ABLE account, there must contract, the part of the distribution disaster, or other events beyond your have been no rollover to an ABLE.

10 Included in income generally is subject reasonable control prevented you from account of that beneficiary within the to the 10% additional tax. But see meeting the 60-day requirement. Also, prior 12 months. Distributions from a designated Roth the 60-day period may be extended if Program-to-program transfer. For account below and Distributions from you had a frozen deposit. See Time an ABLE account, a Roth IRAs, later. Limit for Making a Rollover Contribution program-to-program transfer includes under Can You Move Retirement Plan the direct transfer of the entire balance The additional tax on early Assets?