Instructions for Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

• Legal Form Number: 5329
• Year: 2025
• Issuer: Treasury Department
• Section: Treasury Department

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2023

Instructions for Form 5329

Additional Taxes on Qualified Plans (Including IRAs)

and Other Tax-Favored Accounts

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue Code unless

otherwise noted.

General Instructions

Future Developments

For the latest information about developments related to Form

5329 and its instructions, such as legislation enacted after they

were published, go to IRS.gov/Form5329.

Reminders

Certain corrective distributions not subject to 10% early

distribution tax. Beginning on December 29, 2022, the 10%

additional tax on early distributions will not apply to a corrective

IRA distribution, which consists of an excessive contribution (a

contribution greater than the IRA contribution limit) and any

earnings allocable to the excessive contribution, as long as the

corrective distribution is made on or before the due date

(including extensions) of the income tax return.

Qualified disaster distributions. The 10% additional tax on

early distributions doesn't apply to qualified disaster distributions

nor does it apply to qualified disaster recovery distributions. See

Form 8915-F for more details.

Maximum age for traditional IRA contributions. The age

restriction for contributions to a traditional IRA has been

eliminated.

Purpose of Form

Use Form 5329 to report additional taxes on:

•IRAs,

•Other qualified retirement plans,

•Modified endowment contracts,

•Coverdell ESAs,

•QTPs,

•Archer MSAs,

•HSAs, or

•ABLE accounts.

Who Must File

You must file Form 5329 if any of the following apply.

•You received a distribution from a Roth IRA and either the

amount on line 25c of Form 8606, Nondeductible IRAs, is

more than zero, or the distribution includes a recapture

amount subject to the 10% additional tax, or it’s a qualified

first-time homebuyer distribution (see Distributions from

Roth IRAs, later).

•You received a distribution subject to the tax on early

distributions from a qualified retirement plan (other than a

Roth IRA). However, if distribution code 1 is correctly shown

in box 7 of all your Forms 1099-R and you owe the additional

tax on the full amount shown on each Form 1099-R, you

don’t have to file Form 5329. Instead, see the instructions for

Schedule 2 (Form 1040), line 8, in the Instructions for Form

1040, or the Instructions for Form 1040-NR, for how to report

the 10% additional tax directly on that line.

•You received a distribution subject to the tax on early

distributions from a qualified retirement plan (other than a

Roth IRA) and you meet an exception to the tax on early

distributions from the list shown later, but box 7 of your Form

1099-R doesn’t indicate an exception or the exception

doesn’t apply to the entire distribution.

•You received taxable distributions from Coverdell ESAs,

QTPs, or ABLE accounts.

•The contributions for 2023 to your traditional IRAs, Roth

IRAs, Coverdell ESAs, Archer MSAs, HSAs, or ABLE

accounts exceed your maximum contribution limit, or you

had a tax due from an excess contribution on line 17, 25, 33,

41, or 49 of your 2022 Form 5329.

•You didn’t receive the minimum required distribution from

your qualified retirement plan. This also includes trusts and

estates that didn’t receive this amount. See Waiver of tax for

reasonable cause, later, for information on waiving the tax

on excess accumulations in qualified retirement plans.

If you rolled over part or all of a distribution from a

qualified retirement plan, the part rolled over isn’t subject

to the 10% additional tax on early distributions. See the

instructions for Form 1040, or 1040-NR, lines 4a and 4b or lines

5a and 5b, for how to report the rollover.

When and Where To File

File Form 5329 with your 2023 Form 1040, 1040-SR,1040-NR,

or 1041 by the due date, including extensions, of your tax return.

If you don’t have to file a 2023 income tax return, complete

and file Form 5329 by itself at the time and place you would be

required to file Form 1040, 1040-SR, or 1040-NR. If you file Form

5329 by itself, then it can’t be filed electronically. Be sure to

include your address on page 1 of the form and your signature

and the date on page 2 of the form. Enclose, but don’t attach, a

check or money order payable to “United States Treasury” for

any taxes due. Write your social security number and “2023

Form 5329” on the check. For information on other payment

options, including credit or debit card payments, see the

Instructions for Form 1040 or the Instructions for Form 1040-NR,

or go to IRS.gov.

Prior tax years. If you are filing Form 5329 for a prior year, you

must use the prior year's version of the form. If you don’t have

any other changes and haven’t previously filed a federal income

tax return for the prior year, file the prior year's version of Form

5329 by itself (discussed earlier). If you have other changes, file

Form 5329 for the prior year with Form 1040-X, Amended U.S.

Individual Income Tax Return.

Definitions

Qualified retirement plan. A qualified retirement plan includes:

•A qualified pension, profit-sharing, or stock bonus plan

(including a 401(k) plan);

•A tax-sheltered annuity contract (403(b) plan);

•A qualified annuity plan; and

•An IRA.

Note. Modified endowment contracts aren’t qualified retirement

plans.

TIP

Jan 23, 2024 Cat. No. 13330R