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2012 Instructions for Form 5329 - Internal Revenue Service

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2012 Instructions for Form 5329 - Internal Revenue Service Powered By Docstoc
					2012                                                                                                       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   owe the additional tax on each Form             1040 or Form 1040NR. Be sure to
Code unless otherwise noted.                     1099-R, you do not have to file Form            include your address on page 1 of the
                                                 5329. Instead, see the instructions for         form and your signature and the date on
General Instructions                             Form 1040, line 58, or Form 1040NR,             page 2 of the form. Enclose, but do not
                                                 line 56, for how to report the 10%              attach, a check or money order payable
                                                 additional tax directly on that line.           to “United States Treasury” for any
Future Developments                                 You received an early distribution           taxes due. Write your SSN and “2012
For the latest information about                 subject to the tax on early distributions       Form 5329” on the check. For
developments related to Form 5329 and            from a qualified retirement plan (other         information on other payment options,
its instructions, such as legislation            than a Roth IRA), you meet an                   including credit or debit card payments,
enacted after they were published, go to         exception to the tax on early                   see the instructions for Form 1040 or
www.irs.gov/form5329.                            distributions, and distribution code 1 is       Form 1040NR, or go to IRS.gov.
                                                 shown in box 7 of Form 1099-R.
What's New                                          You received an early distribution
                                                                                                 Prior tax years. If you are filing Form
You can elect to treat a qualified                                                               5329 for a prior year, you must use the
                                                 subject to the tax on early distributions       prior year's version of the form. If you do
charitable distribution (QCD) made in            from a qualified retirement plan (other
January 2013 as if it was made in 2012.                                                          not have any other changes and have
                                                 than a Roth IRA), you meet an                   not previously filed a federal income tax
Additionally, any portion of a distribution      exception to the tax on early
from an IRA in December 2012                                                                     return for the prior year, file the prior
                                                 distributions from the list on page 3, but      year's version of Form 5329 by itself
contributed as cash (or cash equivalent)         box 7 of your Form 1099-R does not
to a charity before February 1, 2013 can                                                         (discussed earlier). If you have other
                                                 indicate an exception or the exception          changes, file Form 5329 for the prior
be treated as a QCD if it meets certain          does not apply to the entire distribution.
requirements. Both these transactions                                                            year with Form 1040X, Amended U.S.
                                                    You received taxable distributions           Individual Income Tax Return.
can count towards your minimum                   from Coverdell ESAs or QTPs.
required distributions for 2012. See
Pub. 590, Individual Retirement
                                                    The contributions for 2012 to your           Definitions
                                                 traditional IRAs, Roth IRAs, Coverdell
Arrangements (IRAs), for more                    ESAs, Archer MSAs, or HSAs exceed               Qualified retirement plan. A qualified
information.                                     your maximum contribution limit, or you         retirement plan includes:
                                                 had a tax due from an excess                       A qualified pension, profit-sharing, or
Purpose of Form                                  contribution on line 17, 25, 33, 41, or 49      stock bonus plan (including a 401(k)
Use Form 5329 to report additional               of your 2011 Form 5329.                         plan),
taxes on:                                           You did not receive the minimum                 A tax-sheltered annuity contract,
   IRAs,                                         required distribution from your qualified          A qualified annuity plan, and
   Other qualified retirement plans,             retirement plan.                                   An IRA.
   Modified endowment contracts,
                                                           If you rolled over part or all of a   Note. Modified endowment contracts
   Coverdell ESAs,
                                                  TIP      distribution from a qualified         are not qualified retirement plans.
   QTPs,                                                   retirement plan, the part rolled
   Archer MSAs, or                               over is not subject to the 10% additional       Traditional IRAs. For purposes of
   HSAs.                                         tax on early distributions. See the             Form 5329, a traditional IRA is any IRA,
                                                 instructions for Form 1040, lines 15a           including a simplified employee pension
Who Must File                                    and 15b or lines 16a and 16b; Form              (SEP) IRA, other than a SIMPLE IRA or
You must file Form 5329 if any of the            1040A, lines 11a and 11b or 12a and             Roth IRA.
following apply.                                 12b; or Form 1040NR, lines 16a and              Early distribution. Generally, any
   You received an early distribution            16b or 17a and 17b, for how to report           distribution from your IRA, other
from a Roth IRA, the amount on line 23           the rollover.                                   qualified retirement plan, or modified
of Form 8606, Nondeductible IRAs, is                                                             endowment contract before you reach
more than zero, and you are required to
enter an amount that is more than zero
                                                 When and Where To File                          age 591 2 is an early distribution.
on Form 5329, line 1 (see Distributions          File Form 5329 with your 2012 Form              Rollover. Generally, a rollover is a
from Roth IRAs, later).                          1040 or Form 1040NR by the due date,            tax-free distribution of assets from one
   You received an early distribution            including extensions, of your Form 1040         qualified retirement plan that is
subject to the tax on early distributions        or Form 1040NR.                                 reinvested in another plan or the same
from a qualified retirement plan (other                                                          plan. Generally, you must complete the
                                                    If you do not have to file a 2012
than a Roth IRA). However, if                                                                    rollover within 60 days of receiving the
                                                 income tax return, complete and file
distribution code 1 is correctly shown in                                                        distribution. Any taxable amount not
                                                 Form 5329 by itself at the time and
box 7 of all your Forms 1099-R, and you                                                          rolled over must be included in income
                                                 place you would be required to file Form


Jan 06, 2013                                                   Cat. No. 13330R
and may be subject to the 10%                Additional Information                       Note. Any related IRA earnings
additional tax on early distributions.       See Pub. 590, Individual Retirement          withdrawn with excess IRA contributions
    You can roll over (convert) amounts      Arrangements; Pub. 560, Retirement           are subject to the 10% additional tax on
from a qualified retirement plan to a        Plans for Small Business; Pub. 575,          early distributions if you were under age
Roth IRA. Any amount rolled over to a        Pension and Annuity Income; Pub. 969,        591 2 at the time of the distribution.
Roth IRA is subject to the same rules for    Health Savings Accounts and Other
converting a traditional IRA to a Roth       Tax-Favored Health Plans; Pub. 970,             A distribution of excess contributions
IRA. You must include in your gross          Tax Benefits for Education; and Pub.         from a qualified cash or deferred
income distributions from a qualified        4492-B, Information for Affected             arrangement.
retirement plan that you would have had      Taxpayers in the Midwestern Disaster            A distribution of excess aggregate
to include in income if you had not rolled   Areas.                                       contributions to meet nondiscrimination
them into a Roth IRA. Generally, the                                                      requirements for employee
10% additional tax on early distributions                                                 contributions and matching employer
does not apply. For more information,        Specific Instructions                        contributions.
see chapter 2 of Pub. 590.                                                                   A distribution of excess deferrals.
                                             Joint returns. If both you and your             A distribution from an eligible
    The IRS may waive the 60-day             spouse are required to file Form 5329,
requirement if failing to waive it would                                                  governmental section 457 deferred
                                             complete a separate form for each of         compensation plan to the extent the
be against equity or good conscience,        you. Include the combined tax on Form
such as situations where a casualty,                                                      distribution is not attributable to an
                                             1040, line 58.                               amount transferred from a qualified
disaster, or other events beyond your
reasonable control prevented you from        Amended returns. If you are filing an        retirement plan.
meeting the 60-day requirement. Also,        amended 2012 Form 5329, check the               See the instructions for line 2, later,
the 60-day period may be extended if         box at the top of page 1 of the form. Do     for other distributions that are not
you had a frozen deposit. See Pub. 590       not use the 2012 Form 5329 to amend          subject to the tax.
for details.                                 your return for any other year. For
                                             information about amending a Form            Line 1
  In-plan Roth rollover. If you are a        5329 for a prior year, see Prior tax         Enter the amount of early distributions
participant in a 401(k), 403(b), or          years, earlier.                              included in income that you received
governmental 457(b) plan, your plan
                                                                                          from:
may now permit you to roll over              Part I—Additional Tax on                        A qualified retirement plan, including
amounts from those plans to a
designated Roth account within the           Early Distributions                          earnings on withdrawn excess
                                             In general, if you receive an early          contributions to your IRAs included in
same plan. The rollover of any untaxed
                                             distribution (including an involuntary       income in 2012, or
amounts must be included in income.
Generally, the 10% additional tax on         cashout) from an IRA, other qualified           A modified endowment contract
early distributions does not apply. For      retirement plan, or modified endowment       entered into after June 20, 1988.
more information, see Pub. 575.              contract, the part of the distribution          Certain prohibited transactions, such
                                             included in income generally is subject      as borrowing from your IRA or pledging
Compensation. Compensation                   to the 10% additional tax. But see
includes wages, salaries, tips, bonuses,                                                  your IRA assets as security for a loan,
                                             Distributions from a designated Roth         are considered to be distributions and
and other pay you receive for services       account and Distributions from Roth
you perform. It also includes sales                                                       may also cause you to owe the
                                             IRAs, later.                                 additional tax on early distributions. See
commissions, commissions on
insurance premiums, and pay based on             The additional tax on early              Pub. 590 for details.
a percentage of profits. It includes net     distributions does not apply to any of the   Distributions from a designated
earnings from self-employment, but only      following:                                   Roth account. If you received an early
for a trade or business in which your           A qualified HSA funding distribution      distribution from your designated Roth
personal services are a material             from an IRA (other than a SEP or             account, include on line 1 the amount of
income-producing factor.                     SIMPLE IRA). See Pub. 969 for details.       the distribution that you must include in
   For IRAs, treat nontaxable combat            A distribution from a traditional or      your income. You will find this amount in
pay and any differential wage payments,      SIMPLE IRA that was converted to a           box 2a of your 2012 Form 1099-R. You
and all taxable alimony received under a     Roth IRA.                                    may also need to include a recapture
decree of divorce or separate                   A rollover from a qualified retirement    amount on line 1 if you have ever made
maintenance as compensation.                 plan to a Roth IRA.                          an in-plan Roth rollover (discussed
                                                In-plan rollover to a designated Roth     next).
   Compensation does not include any
                                             account.
amounts received as a pension or                                                                  If you never made an in-plan
                                                A distribution of certain excess IRA
annuity and does not include any                                                                  Roth rollover, you only need to
                                             contributions (see the instructions for       TIP
amount received as deferred                                                                       include on line 1 of this form the
                                             line 15, later, and the instructions for
compensation.                                                                             amount from box 2a of your 2012 Form
                                             line 23, later).
   Taxable compensation is your                                                           1099-R reporting the early distribution.
compensation that is included in gross
income reduced by any deductions on
Form 1040 or Form 1040NR, lines 27
and 28, but not by any loss from
self-employment.


                                                                -2-                             Instructions for Form 5329 (2012)
    Recapture amount subject to the                The recapture amount that you must
additional tax on early distributions.          include on line 1 will not exceed the
                                                                                              No. Exception
If you have ever made an in-plan Roth           amount of your early distribution; and,
rollover and you received an early              for purposes of determining this              01 Qualified retirement plan distributions
distribution for 2012, the recapture            recapture amount, a contribution,                (does not apply to IRAs) you receive
amount to include on line 1 is a portion        conversion, or rollover amount (or               after separation from service in or
of amounts you rolled over.                     portion thereof) will only be allocated to       after the year you reach age 55 (age
                                                an early distribution once.                      50 for qualified public safety
    The recapture amount that you must
                                                                                                 employees).
include on line 1 will not exceed the              For more information about the
amount of your early distribution; and,         recapture amount for distributions from       02 Distributions made as part of a series
for purposes of determining this                a Roth IRA, including how to calculate it,       of substantially equal periodic
recapture amount, a rollover amount (or         see Pub. 590. Also, see the Example              payments (made at least annually) for
portion of a rollover) will only be             below that illustrates a situation where a       your life (or life expectancy) or the
allocated to an early distribution once.        taxpayer must include a recapture                joint lives (or joint life expectancies)
                                                amount on line 1.                                of you and your designated
    For more information about the
                                                                                                 beneficiary (if from an employer plan,
recapture amount for distributions from            Example. You converted $20,000                payments must begin after separation
a designated Roth account, including            from a traditional IRA to a Roth IRA in          from service).
how to calculate it, see Pub. 575.              2008 and converted $10,000 in 2009.
                                                Your 2008 Form 8606 had $5,000 on             03 Distributions due to total and
Distributions from Roth IRAs. If you                                                             permanent disability.
received an early distribution from your        line 17 and $15,000 on line 18 and your
Roth IRAs, include on line 1 the part of        2009 Form 8606 had $3,000 on line 17          04 Distributions due to death (does not
the distribution that you must include in       and $7,000 on line 18. You made Roth             apply to modified endowment
your income. You will find this amount          IRA contributions of $2,000 for 2008             contracts).
on line 25 of your 2012 Form 8606. You          and 2009. You did not make any Roth
                                                                                              05 Qualified retirement plan distributions
will also need to include on line 1 the         IRA conversions or contributions for             up to (1) the amount you paid for
following amounts.                              2010 through 2012, or take any Roth              unreimbursed medical expenses
   A qualified first-time homebuyer             IRA distributions before 2012.                   during the year minus (2) 7.5% of
distribution from line 20 of your 2012             On July 9, 2012, at age 53, you took          your adjusted gross income for the
Form 8606. Also include this amount on          a $33,000 distribution from your Roth            year.
line 2 and enter exception number 09.           IRA. Your 2012 Form 8606 shows
                                                                                              06 Qualified retirement plan distributions
   Recapture amounts attributable to            $33,000 on line 19; $29,000 on line 23           made to an alternate payee under a
any conversions or rollovers to your            ($33,000 minus $4,000 for your                   qualified domestic relations order
Roth IRAs in 2008 through 2012. See             contributions on line 22) and $0 on              (does not apply to IRAs).
Recapture amount subject to the                 line 25 ($29,000 minus your basis in
                                                conversions of $30,000).                      07 IRA distributions made to
additional tax on early distributions next.
                                                                                                 unemployed individuals for health
                                                   First, $4,000 of the $33,000 is
          If you did not convert or roll                                                         insurance premiums.
                                                allocated to your 2012 Form 8606,
 TIP      over an amount to your Roth                                                         08 IRA distributions made for higher
                                                line 22; then $15,000 to your 2008 Form
          IRAs in 2008 through 2012, or                                                          education expenses.
                                                8606, line 18; $5,000 to your 2008 Form
have a first-time homebuyer distribution,
                                                8606, line 17; and $7,000 to your 2009        09 IRA distributions made for purchase
you only need to include the amount
                                                Form 8606, line 18. The remaining                of a first home, up to $10,000.
from line 25 of your 2012 Form 8606 on
                                                $2,000 is allocated to the $3,000 on
line 1 of this form.                                                                          10 Distributions due to an IRS levy on
                                                your 2009 Form 8606, line 17. On line 1,
                                                                                                 the qualified retirement plan.
    Recapture amount subject to the             enter $22,000 ($15,000 allocated to
additional tax on early distributions.          your 2008 Form 8606, line 18, plus the        11 Qualified distributions to reservists
If you converted or rolled over an              $7,000 that was allocated to your 2009           while serving on active duty for at
                                                Form 8606, line 18).                             least 180 days.
amount to your Roth IRAs in 2008
through 2012 and you received an early             If you take a Roth IRA distribution in     12 Other (see Other below). Also, enter
distribution for 2012, the recapture            2013, the first $1,000 will be allocated to      this code if more than one exception
amount to include on line 1 is the              the $1,000 remaining from your 2009              applies.
amount, if any, of the early distribution       Form 8606, line 17, and will not be
allocated to the taxable portion of your        subject to the additional tax on early
2008 through 2012 conversions or                distributions.                                Other. The following exceptions also
rollovers.                                      Additional information. For more              apply.
    Generally, an early distribution is         details, see Are Distributions Taxable?         Distributions incorrectly indicated as
allocated to your Roth IRA contributions        in Pub. 590.                                  early distributions by code 1, J, or S in
first, then to your conversions and                                                           box 7 of Form 1099-R. Include on line 2
rollovers on a first-in, first-out basis. The   Line 2                                        the amount you received when you
recapture amount is the amount of the           The additional tax on early distributions     were age 591 2 or older.
conversion or rollover that was subject         does not apply to the distributions             Distributions from a section 457 plan,
to tax in the year of the conversion or         described below. Enter on line 2 the          which are not from a rollover from a
the rollover. An early distribution             amount that can be excluded. In the           qualified retirement plan.
allocated to a conversion or rollover is        space provided, enter the applicable            Distributions from a plan maintained
first allocated to the taxable portion.         exception number (01-12).                     by an employer if:

Instructions for Form 5329 (2012)                                   -3-
   1. You separated from service by          to avoid the tax on any 2012 excess             which the excess contributions were
March 1, 1986;                               contributions (see the instructions for         made were not more than the amounts
   2. As of March 1, 1986, your entire       line 15, later).                                shown in the following table.
interest was in pay status under a           Line 9                                           Year(s)        Contribution Contribution
written election that provides a specific
schedule for distribution of your entire     Enter the amount from line 16 of your                               limit     limit if age
                                             2011 Form 5329 only if the amount on                                         50 or older at
interest; and                                                                                                              the end of
                                             line 17 of your 2011 Form 5329 is more
   3. The distribution is actually being     than zero.                                                                      the year
made under the written election.
                                             Line 10                                          2008              $5,000        $6,000
   Distributions that are dividends paid                                                      through
                                             If you contributed less to your traditional      2011
with respect to stock described in
                                             IRAs for 2012 than your contribution
section 404(k).                                                                               2006 or           $4,000        $5,000
                                             limit for traditional IRAs, enter the
   Distributions from annuity contracts to                                                    2007
                                             difference.
the extent that the distributions are                                                         2005              $4,000        $4,500
allocable to the investment in the               If you are not married filing jointly,
contract before August 14, 1982.             your contribution limit for traditional          2002              $3,000        $3,500
                                                                                              through
   For additional exceptions that apply      IRAs is the smaller of your taxable
                                                                                              2004
to annuities, see Pub. 575.                  compensation ( defined earlier) or
                                             $5,000 ($6,000 if age 50 or older at the         1997              $2,000          —
Line 4                                       end of 2012). If you are married filing          through
If any amount on line 3 was a                jointly, your contribution limit is generally    2001
distribution from a SIMPLE IRA received      $5,000 ($6,000 if age 50 or older at the         before 1997       $2,250          —
within 2 years from the date you first       end of 2012) and your spouse's
participated in the SIMPLE IRA plan,         contribution limit is $5,000 ($6,000 if            If the total contributions for the year
you must multiply that amount by 25%         age 50 or older at the end of 2012). But        included employer contributions to a
instead of 10%. These distributions are      if the combined taxable compensation            SEP, increase that amount by the
included in boxes 1 and 2a of Form           for you and your spouse is less than            smaller of the amount of the employer
1099-R and are designated with code S        $10,000 ($11,000 if one spouse is 50 or         contributions or:
in box 7.                                    older at the end of 2012; $12,000 if both
                                                                                              2011                        $50,000
                                             spouses are 50 or older at the end of
Part II—Additional Tax on                    2012), see How Much Can Be                       2009 or 2010                $49,000

Certain Distributions From                   Contributed? in Pub. 590 for special             2008                        $46,000
                                             rules.
Education Accounts                                                                            2007                        $45,000
                                                 Also include on line 11a or 11b              2006                        $44,000
Line 6                                       (line 11 for Form 1040NR) of the IRA
This tax does not apply to distributions     Deduction Worksheet in the instructions          2005                        $42,000
that are includible in income if:            for Form 1040 or Form 1040NR, line 32,           2004                        $41,000
    Made due to the death or disability of   the smaller of (a) Form 5329, line 10, or        2002 or 2003                $40,000
the beneficiary;                             (b) the excess, if any, of Form 5329,
    Made on account of a tax-free            line 9, over the sum of Form 5329, lines         2001                        $35,000
scholarship, allowance, or payment           11 and 12.                                       before 2001                 $30,000
described in section 25A(g)(2);
    Made because of attendance by the
                                             Line 11
                                             Enter on line 11 any withdrawals from           Line 15
beneficiary at a U.S. military academy.
This exception applies only to the extent    your traditional IRAs that are included in      Enter the excess of your contributions to
that the distribution does not exceed the    your income. Do not include any                 traditional IRAs for 2012 (unless
costs of advanced education (as              withdrawn contributions reported on             withdrawn—see below) over your
defined in title 10 of the U.S. Code) at     line 12.                                        contribution limit for traditional IRAs.
the academy; or                                                                              See the instructions for line 10, earlier,
                                             Line 12                                         to figure your contribution limit for
    Included in income because you used
                                             Enter any excess contributions to your          traditional IRAs. Any amount you
the qualified education expenses to
                                             traditional IRAs for 1976 through 2010          contribute for the year in which you
figure the American opportunity and
                                             that you had returned to you in 2012            reach age 701 2 or a later year is an
lifetime learning credits.
                                             and any 2011 excess contributions that          excess contribution because your
   Enter on line 6 the portion of line 5     you had returned to you in 2012 after           contribution limit is zero. Do not include
that is excluded.                            the due date (including extensions) of          rollovers in figuring your excess
                                             your 2011 income tax return, that are           contributions.
Part III—Additional Tax on                   included on line 9, if:
                                                                                                You can withdraw some or all of your
                                                You did not claim a deduction for the
Excess Contributions to                      excess contributions and no traditional         excess contributions for 2012 and they
Traditional IRAs                             IRA deduction was allowable (without            will not be treated as having been
If you contributed more for 2012 than is     regard to the modified AGI limitation) for      contributed if:
allowable or you had an amount on            the excess contributions, and                      You make the withdrawal by the due
line 17 of your 2011 Form 5329, you             The total contributions to your              date, including extensions, of your 2012
may owe this tax. But you may be able        traditional IRAs for the tax year for           tax return,

                                                                 -4-                                 Instructions for Form 5329 (2012)
   You do not claim a traditional IRA            $0 if married filing separately and you   “Filed pursuant to section 301.9100-2”
deduction for the withdrawn                   lived with your spouse at any time in        written at the top. Report any related
contributions, and                            2012, or                                     earnings for 2012 on the amended
   You withdraw any earnings on the              $110,000 for any other taxpayer.          return and include an explanation of the
withdrawn contribution and include the                                                     withdrawal. Make any other necessary
earnings in gross income (see the                See Pub. 590 for details.                 changes on the amended return (for
Instructions for Form 8606 for details).      Line 20                                      example, if you reported the
Also, if you had not reached age 591 2 at                                                  contributions as excess contributions on
                                              Generally, enter the amount from Form        your original return, include an amended
the time of the withdrawal, include the
                                              8606, line 19, plus any qualified            Form 5329 reflecting that the withdrawn
earnings as an early distribution on
                                              distributions. But if you withdrew the       contributions are no longer treated as
line 1 of Form 5329 for the year in which
                                              entire balance of all your Roth IRAs, do     having been contributed).
you report the earnings.
                                              not enter less than the amount on Form
    If you timely filed your return without   5329, line 18 (see Example below).
withdrawing the excess contributions,
                                                                                           Part V—Additional Tax on
you can still make the withdrawal no
                                                 Example. You contributed $1,000 to        Excess Contributions to
                                              a Roth IRA in 2010, your only
later than 6 months after the due date of     contribution to Roth IRAs. In 2012, you      Coverdell ESAs
your tax return, excluding extensions. If     discovered you were not eligible to          If the contributions to your Coverdell
you do, file an amended return with           contribute to a Roth IRA in 2010. On         ESAs for 2012 were more than is
“Filed pursuant to section 301.9100-2”        September 9, 2012, you withdrew $800,        allowable or you had an amount on
written at the top. Report any related        the entire balance in the Roth IRA. You      line 33 of your 2011 Form 5329, you
earnings for 2012 on the amended              must file Form 5329 for 2010 and 2011        may owe this tax. But you may be able
return and include an explanation of the      to pay the additional taxes for those        to avoid the tax on any 2012 excess
withdrawal. Make any other necessary          years. When you complete Form 5329           contributions (see the instructions for
changes on the amended return (for            for 2012, you enter $1,000 (not $800)        line 31, later).
example, if you reported the                  on line 20, because you withdrew the
contributions as excess contributions on                                                   Line 26
                                              entire balance.
your original return, include an amended                                                   Enter the amount from line 32 of your
Form 5329 reflecting that the withdrawn       Line 23                                      2011 Form 5329 only if the amount on
contributions are no longer treated as        Enter the excess of your contributions to    line 33 of your 2011 Form 5329 is more
having been contributed).                     Roth IRAs for 2012 (unless                   than zero.
                                              withdrawn—see below) over your
Part IV—Additional Tax on                                                                  Line 27
                                              contribution limit for Roth IRAs (see the
                                                                                           Enter the excess, if any, of the
Excess Contributions to                       instructions for line 19, earlier).
                                                                                           maximum amount that can be
Roth IRAs                                        Do not include rollovers from another     contributed to your Coverdell ESAs for
If you contributed more to your Roth IRA      Roth IRA or designated Roth account in       2012 (see the instructions for line 31
for 2012 than is allowable or you had an      figuring your excess contributions.          below) over the amount actually
amount on line 25 of your 2011 Form                                                        contributed for 2012.
5329, you may owe this tax. But you              You can withdraw some or all of your
may be able to avoid the tax on any           excess contributions for 2012 and they       Line 28
2012 excess contributions (see the            will not be treated as having been           Enter your total distributions from
instructions for line 23, later).             contributed if:                              Coverdell ESAs in 2012. Do not include
                                                 You make the withdrawal by the due        rollovers or returned excess
                                              date, including extensions, of your 2012     contributions.
Line 18                                       tax return, and
Enter the amount from line 24 of your            You withdraw any earnings on the          Line 31
2011 Form 5329 only if the amount on          withdrawn contributions and include the      Enter the excess of the contributions to
line 25 of your 2011 Form 5329 is more        earnings in gross income (see the            your Coverdell ESAs for 2012 (not
than zero.                                    Instructions for Form 8606 for details).     including rollovers) over your
                                              Also, if you had not reached age 591 2 at    contribution limit for Coverdell ESAs.
Line 19                                       the time of the withdrawal, include the      Your contribution limit is the smaller of
If you contributed less to your Roth IRAs     earnings as an early distribution on         $2,000 or the sum of the maximum
for 2012 than your contribution limit for     line 1 of Form 5329 for the year in which    amounts allowed to be contributed by
Roth IRAs, enter the difference. Your         you report the earnings.                     the contributor(s) to your Coverdell
contribution limit for Roth IRAs is                                                        ESAs. The maximum contribution may
generally your contribution limit for         Note. A Form 5329 is not required if the     be limited based on the contributor's
traditional IRAs (see the instructions for    excess Roth IRA contributions are not        modified AGI. See Pub. 970 for details.
line 10, earlier) reduced by the amount       treated as having been contributed and
                                              you do not have any earnings to report          You can withdraw some or all of the
you contributed to traditional IRAs. But
                                              as early distributions on the form.          excess contributions for 2012 and they
your contribution limit for Roth IRAs may
                                                                                           will not be treated as having been
be further reduced or eliminated if your
                                                 If you timely filed your return without   contributed if:
modified AGI for Roth IRA purposes is
                                              withdrawing the excess contributions,           You make the withdrawal before June
over:
                                              you can still make the withdrawal no         1, 2013, and
    $173,000 if married filing jointly or
                                              later than 6 months after the due date of       You also withdraw any income
qualifying widow(er),
                                              your tax return, excluding extensions. If    earned on the withdrawn contributions
                                              you do, file an amended return with          and include the earnings in gross

Instructions for Form 5329 (2012)                                -5-
income for the year in which the                You make the withdrawal by the due             However, you can withdraw some or
contribution was made.                       date, including extensions, of your 2012      all of the excess contributions for 2012
                                             tax return, and                               and they will not be treated as having
   If you filed your return without                                                        been contributed if:
                                                You withdraw any income earned on
withdrawing the excess contributions,
                                             the withdrawn contributions and include          You make the withdrawal by the due
you can still make the withdrawal, but it
                                             the earnings in gross income for the          date, including extensions, of your 2012
must be made before June 1, 2013. If
                                             year in which you receive the withdrawn       return, and
you do, file an amended return. Report
                                             contributions and earnings.                      You withdraw any income earned on
any related earnings for 2012 on the
                                                Include the withdrawn contributions        the withdrawn contributions and include
amended return and include an
                                             and related earnings on Form 8853,            the earnings in gross income for the
explanation of the withdrawal. Make any
                                             lines 6a and 6b.                              year in which you receive the withdrawn
other necessary changes on the
                                                                                           contributions and earnings.
amended return (for example, if you              If you timely filed your return without
reported the contributions as excess         withdrawing the excess contributions,            Include the withdrawn contributions
contributions on your original return,       you can still make the withdrawal no          and related earnings on Form 8889,
include an amended Form 5329                 later than 6 months after the due date of     lines 14a and 14b.
reflecting that the withdrawn                your tax return, excluding extensions. If
contributions are no longer treated as       you do, file an amended return with               If you timely filed your return without
having been contributed).                    “Filed pursuant to section 301.9100-2”        withdrawing the excess contributions,
                                             written at the top. Report any related        you can still make the withdrawal no
Part VI—Additional Tax on                    earnings for 2012 on the amended              later than 6 months after the due date of
Excess Contributions to                      return and include an explanation of the      your tax return, excluding extensions. If
                                             withdrawal. Make any other necessary          you do, file an amended return with
Archer MSAs                                  changes on the amended return (for            “Filed pursuant to section 301.9100-2”
If you or your employer contributed          example, if you reported the                  written at the top. Report any related
more to your Archer MSA for 2012 than        contributions as excess contributions on      earnings for 2012 on the amended
is allowable or you had an amount on         your original return, include an amended      return and include an explanation of the
line 41 of your 2011 Form 5329, you          Form 5329 reflecting that the withdrawn       withdrawal. Make any other necessary
may owe this tax. But you may be able        contributions are no longer treated as        changes on the amended return (for
to avoid the tax on any 2012 excess          having been contributed).                     example, if you reported the
contributions (see the instructions for                                                    contributions as excess contributions on
line 39, later).                                                                           your original return, include an amended
                                             Part VII—Additional Tax on                    Form 5329 reflecting that the withdrawn
Line 34                                      Excess Contributions to                       contributions are no longer treated as
Enter the amount from line 40 of your        Health Savings Accounts                       having been contributed).
2011 Form 5329 only if the amount on
                                             (HSAs)
line 41 of your 2011 Form 5329 is more
                                             If you, someone on your behalf, or your       Part VIII—Additional Tax
than zero.
                                             employer contributed more to your             on Excess Accumulation
Line 35                                      HSAs for 2012 than is allowable or you        in Qualified Retirement
If your contribution limit for your Archer   had an amount on line 49 of your 2011
MSAs (the smaller of line 3 or line 4 of     Form 5329, you may owe this tax. But
                                                                                           Plans (Including IRAs)
Form 8853, Archer MSAs and                   you may be able to avoid the tax on any       You owe this tax if you do not receive
Long-Term Care Insurance Contracts)          2012 excess contributions (see the            the required minimum distribution from
is greater than the contributions to your    instructions for line 47, later).             your qualified retirement plan, including
Archer MSAs for 2012, enter the                                                            an IRA or an eligible section 457
difference on line 35. Also include on
                                             Line 43                                       deferred compensation plan. The
your 2012 Form 8853, line 5, the smaller     If your contribution limit for your HSAs      additional tax is 50% of the excess
of:                                          (line 12 of Form 8889, Health Savings         accumulation—the difference between
                                             Accounts (HSAs)) is greater than the          the amount that was required to be
    Form 5329, line 35, or
                                             contributions you made to your HSAs           distributed and the amount that was
    The excess, if any, of Form 5329,
                                             (or those made on your behalf) for 2012       actually distributed. The tax is due for
line 34, over Form 5329, line 36.
                                             (Form 8889, line 2), enter the difference     the tax year that includes the last day by
Line 39                                      on line 43. Also include on your 2012         which the minimum required distribution
Enter the excess of your contributions to    Form 8889, line 13, the smaller of:           is required to be taken.
your Archer MSA for 2012 (from Form              Form 5329, line 43, or                    Required Distributions
8853, line 2) over your contribution limit       The excess, if any, of Form 5329,
(the smaller of line 3 or line 4 of Form     line 42, over Form 5329, line 44.             IRA (other than a Roth IRA). You
8853). Also include on line 39 any                                                         must start receiving distributions from
excess contributions your employer
                                             Line 47                                       your IRA by April 1 of the year following
made. See the Instructions for Form          Enter the excess of your contributions        the year in which you reach age 701 2. At
8853 for details.                            (including those made on your behalf) to      that time, you can receive your entire
                                             your HSAs for 2012 (Form 8889, line 2)        interest in the IRA or begin receiving
    However, you can withdraw some or        over your contribution limit (Form 8889,      periodic distributions. If you choose to
all of the excess contributions for 2012     line 12). Also include on line 47 any         receive periodic distributions, you must
and they will not be treated as having       excess contributions your employer            receive a minimum required distribution
been contributed if:                         made. See the Instructions for Form           each year. You can figure the minimum
                                             8889 for details.                             required distribution by dividing the

                                                                 -6-                             Instructions for Form 5329 (2012)
account balance of your IRAs (other              Exception. If you owned more than          certain distributions from qualified plans,
than Roth IRAs) on December 31 of the         5% of the employer maintaining the            including IRAs, and other tax-favored
year preceding the distribution by the        plan, you must begin receiving                accounts. Our legal right to ask for the
applicable life expectancy. For               distributions no later than April 1 of the    information requested on this form is
applicable life expectancies, see Pub.        year following the year in which you          sections 6001, 6011, 6012(a), and 6109
590.                                          reach age 701 2, regardless of when you       and their regulations. If you do not
   If the trustee, custodian, or issuer of    retire.                                       provide this information, or you provide
your IRA informs you of the minimum              Your plan administrator should figure      incomplete or false information, you
required distribution, you can use that       the amount that must be distributed           may be subject to penalties
amount.                                       each year.                                       You are not required to provide the
   If you have more than one IRA, you         Waiver of tax. The IRS can waive part         information requested on a form that is
can take the minimum required                 or all of this tax if you can show that any   subject to the Paperwork Reduction Act
distribution from any one or more of the      shortfall in the amount of distributions      unless the form displays a valid OMB
individual IRAs.                              was due to reasonable error and you           control number. Books or records
   For more details on the minimum            are taking reasonable steps to remedy         relating to a form or its instructions must
distribution rules (including examples),      the shortfall. If you believe you qualify     be retained as long as their contents
see Pub. 590.                                 for this relief, attach a statement of        may become material in the
                                              explanation and file Form 5329 as             administration of any Internal Revenue
         You may count the following          follows.                                      law. Generally, tax returns and return
 TIP     transactions towards your                                                          information are confidential, as required
         minimum required distributions           1. Complete lines 50 and 51 as
                                                                                            by section 6103. However, we may give
for 2012, which is entered on line 51:        instructed.
                                                                                            this information to the Department of
   You elect to treat a QCD made in               2. Enter “RC” and the amount you          Justice for civil and criminal litigation,
January 2013 as if it was made in 2012.       want waived in parentheses on the             and to cities, states, the District of
   Any portion of your distribution in        dotted line next to line 52. Subtract this    Columbia, and U.S. commonwealths
December 2012 that you contributed as         amount from the total shortfall you           and possessions to carry out their tax
cash (or cash equivalent) to a charity        figured without regard to the waiver, and     laws. We may also disclose this
before February 1, 2013, and that             enter the result on line 52.                  information to other countries under a
contribution meets the requirements of a          3. Complete line 53 as instructed.        tax treaty, to federal and state agencies
QCD.                                          You must pay any tax due that is              to enforce federal nontax criminal laws,
See Pub. 590 for more information.            reported on line 53.                          or to federal law enforcement and
                                                                                            intelligence agencies to combat
Roth IRA. There are no minimum                  The IRS will review the information         terrorism.
required distributions during the lifetime    you provide and decide whether to grant
of the owner of a Roth IRA. Following         your request for a waiver.                       The average time and expenses
the death of the Roth IRA owner,                                                            required to complete and file this form
required distribution rules apply to the      Privacy Act and Paperwork Reduc-              will vary depending on individual
beneficiary. See Pub. 590 for details.        tion Act Notice. We ask for the               circumstances. For the estimated
                                              information on this form to carry out the     averages, see the instructions for your
Qualified retirement plans (other             Internal Revenue laws of the United           income tax return.
than IRAs) and eligible section 457           States. We need this information to
deferred compensation plans. In               ensure that you are complying with               If you have suggestions for making
general, you must begin receiving             these laws and to allow us to figure and      this form simpler, we would be happy to
distributions from your plan no later than    collect the right amount of tax. You are      hear from you. See the instructions for
April 1 following the later of (a) the year   required to give us this information if you   your income tax return.
in which you reach age 701 2 or (b) the       made certain contributions or received
year in which you retire.




Instructions for Form 5329 (2012)                                 -7-

				
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