U.S. Individual Income Tax Return

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Instructions for Form 5329

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2008

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 Code unless otherwise noted.

General Instructions
What’s New
Rollovers from qualified retirement
plans to Roth IRAs. Beginning in
2008, you can roll over (convert)
amounts from a qualified retirement
plan to a Roth IRA. Generally, the 10%
tax on early distributions does not apply
to these rollovers. See Rollover on
page 2 for more information.
Economic stimulus payments. If
your economic stimulus payment was
directly deposited into a tax-favored
account (such as your individual
retirement arrangement (IRA),
Coverdell education savings account
(ESA), Archer MSA, health savings
account (HSA), or qualified tuition
program (QTP) account), you can
withdraw all or part of the payment. The
amount withdrawn will not be
considered as contributed to or
distributed from the account and is not
subject to any additional tax or penalty.
The withdrawal must be made by the
due date (including extensions) for filing
your 2008 tax return. For a Coverdell
ESA, the withdrawal can be made by
the later of the above date or June 1,
2009.
Midwestern disaster relief. The
additional tax on early distributions
does not apply to qualified disaster
recovery assistance distributions. See
Form 8930, Qualified Disaster
Recovery Assistance Retirement Plan
Distributions and Repayments, for more
information.
Kansas storms and tornadoes. The
additional tax on early distributions
does not apply to qualified recovery
assistance distributions. See Pub.
4492-A, Information for Taxpayers
Affected by the May 4, 2007, Kansas
Storms and Tornadoes, for more
information.
Required minimum distributions for
2009. For 2009, you are not required
to take a minimum distribution from
your employer-provided qualified
retirement plan or IRA. For more
information, see Pub. 575, Pension and
Annuity Income, or Pub. 590, Individual
Retirement Arrangements (IRAs).

Purpose of Form
Use Form 5329 to report additional
taxes on:
• IRAs,
• Other qualified retirement plans,
• Modified endowment contracts,
• Coverdell ESAs,
• QTPs,
• Archer MSAs, or
• HSAs.

Who Must File
You must file Form 5329 if any of the
following apply, except you do not have
to file Form 5329 to report a qualified
disaster recovery assistance
distribution, a qualified recovery
assistance distribution, or the timely
withdrawal of an economic stimulus
payment that was directly deposited
into your tax-favored account (see
Economic stimulus payments on this
page).
• You received an early distribution
from a Roth IRA, the amount on line 23
of Form 8606, Nondeductible IRAs, is
more than zero, and you are required to
enter an amount that is more than zero
on Form 5329, line 1 (see Exception for
Roth IRA Distributions on page 2).
• You received an early distribution
from a qualified retirement plan (other
than a Roth IRA) and distribution code
1 is not shown in box 7 of Form
1099-R, Distributions From Pensions,
Annuities, Retirement or Profit-Sharing
Plans, IRAs, Insurance Contracts, etc.
Note. You do not have to file Form
5329 if distribution code 1 is correctly
shown in box 7 of all Forms 1099-R
and you owe the additional tax on each
Form 1099-R. Instead, see the
instructions for Form 1040, line 59, or
Form 1040NR, line 54, for how to report
the additional 10% tax directly on that
line.
• You meet an exception to the tax on
early distributions and distribution code
1 is shown in box 7 of Form 1099-R.
• You meet an exception to the tax on
early distributions from the list on page
3 but box 7 of your Form 1099-R does
not indicate an exception or the
exception does not apply to the entire
distribution.
• You received taxable distributions
from Coverdell ESAs or QTPs.
• The contributions for 2008 to your
traditional IRAs, Roth IRAs, Coverdell
ESAs, Archer MSAs, or HSAs exceed
your maximum contribution limit, or you
Cat. No. 13330R

had a tax due from an excess
contribution on line 17, 25, 33, 41, or 49
of your 2007 Form 5329.
• You did not receive the minimum
required distribution from your qualified
retirement plan.
If you rolled over part or all of a
TIP distribution from a qualified
retirement plan, the part rolled
over is not subject to the additional tax
on early distributions. See the
instructions for Form 1040, lines 15a
and 15b or lines 16a and 16b; Form
1040A, lines 11a and 11b or 12a and
12b; or Form 1040NR, lines 16a and
16b or 17a and 17b, for how to report
the rollover.

When and Where To File
File Form 5329 with your 2008 Form
1040 or Form 1040NR by the due date,
including extensions, of your Form
1040 or Form 1040NR.
If you do not have to file a 2008
income tax return, complete and file
Form 5329 by itself at the time and
place you would be required to file
Form 1040 or Form 1040NR. Be sure
to include your address on page 1 and
your signature and the date on page 2.
Enclose, but do not attach, a check or
money order payable to “United States
Treasury” for any taxes due. Write your
SSN and “2008 Form 5329” on the
check.
Prior tax years. If you are filing Form
5329 for a prior year, you must use that
year’s version of the form. If you do not
have other changes and have not
previously filed a federal income tax
return for that year, file Form 5329 by
itself (discussed earlier). If you have
other changes, file Form 5329 for that
year with Form 1040X, 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,
• A qualified annuity plan, and
• An IRA.
For purposes of the additional tax on
early distributions, an eligible
governmental section 457 deferred
compensation plan is treated as a
qualified retirement plan, but only to the
extent that a distribution is attributable

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to an amount transferred from a
qualified retirement plan (defined on
page 1).
Note. Modified endowment contracts
are not qualified retirement plans.
Traditional IRAs. For purposes of
Form 5329, a traditional IRA is any IRA,
including a simplified employee pension
(SEP) IRA, other than a SIMPLE IRA or
Roth IRA.
Early distribution. Generally, any
distribution from your IRA, other
qualified retirement plan, or modified
endowment contract before you reach
age 591/2 is an early distribution.
Rollover. Generally, a rollover is a
tax-free distribution of assets from one
qualified retirement plan that is
reinvested in another plan or the same
plan. Generally, you must complete the
rollover within 60 days of receiving the
distribution. Any taxable amount not
rolled over must be included in income
and may be subject to the additional tax
on early distributions.
Beginning in 2008, you can roll over
(convert) amounts from a qualified
retirement plan to a Roth IRA. Any
amount rolled over to a Roth IRA is
subject to the same rules for converting
a traditional IRA to a Roth IRA. You
must include in your gross income
distributions from a qualified retirement
plan that you would have had to include
in income if you had not rolled them
into a Roth IRA. Generally, the 10% tax
on early distributions does not apply.
For more information, see Rollover
From Employer’s Plan Into a Roth IRA
in chapter 2 of Pub. 590.
The IRS may waive the 60-day
requirement if failing to waive it would
be against equity or good conscience,
such as situations where a casualty,
disaster, or other events beyond your
reasonable control prevented you from
meeting the 60-day requirement. Also,
the 60-day period may be extended if
you had a frozen deposit. See Pub. 590
for details.
Compensation. Compensation
includes wages, salaries, tips, bonuses,
and other pay you receive for services
you perform. It also includes sales
commissions, commissions on
insurance premiums, and pay based on
a percentage of profits. It includes net
earnings from self-employment, but
only for a trade or business in which
your personal services are a material
income-producing factor.
For IRAs, treat nontaxable combat
pay and all taxable alimony received
under a decree of divorce or separate
maintenance as compensation.
Compensation does not include any
amounts received as a pension or
annuity and does not include any
amount received as deferred
compensation.
Taxable compensation is your
compensation that is included in gross
income reduced by any deductions on
Form 1040, lines 27 and 28, or on Form

1040NR, line 27, but not by any loss
from self-employment.

Additional Information
See Pub. 590; Pub. 560, Retirement
Plans for Small Business; Pub. 575;
Pub. 969, Health Savings Accounts and
Other Tax-Favored Health Plans; Pub.
970, Tax Benefits for Education; Pub.
4492-A; and Pub. 4492-B.

• A distribution of excess deferrals.
• A distribution from an eligible

governmental section 457 deferred
compensation plan to the extent the
distribution is not attributable to an
amount transferred from a qualified
retirement plan (excluding an eligible
section 457 deferred compensation
plan).
See the instructions for line 2 on
page 3 for other distributions that are
not subject to the tax.

Specific Instructions

Line 1

Joint returns. If both you and your
spouse are required to file Form 5329,
complete a separate form for each of
you. Include the combined tax on Form
1040, line 59.
Amended returns. If you are filing an
amended 2008 Form 5329, check the
box at the top of page 1 of the form. Do
not use the 2008 Form 5329 to amend
your return for any other year. Instead,
see Prior tax years on page 1.

Enter the amount of early distributions
included in income that you received
from:
• A qualified retirement plan, including
earnings on withdrawn excess
contributions to your IRAs included in
income in 2008, or
• A modified endowment contract
entered into after June 20, 1988.
Certain prohibited transactions, such
as borrowing from your IRA or pledging
your IRA assets as security for a loan,
are considered to be distributions and
may also cause you to owe the
additional tax on early distributions. See
Pub. 590 for details.

Part I—Additional Tax
on Early Distributions
In general, if you receive an early
distribution (including an involuntary
cashout) from an IRA, other qualified
retirement plan, or modified endowment
contract, the part of the distribution
included in income generally is subject
to an additional 10% tax. But see
Exception for Roth IRA Distributions on
this page.
The additional tax on early
distributions does not apply to any of
the following:
• A qualified disaster recovery
assistance distribution. See Form 8930
for more details.
• A qualified recovery assistance
distribution. See Pub. 4492-A for more
details.
• An economic stimulus payment
directly deposited into your IRA and
withdrawn by the due date of your tax
return (including extensions).
• A qualified HSA funding distribution
from an IRA (other than a SEP or
SIMPLE IRA). See Pub. 969 for details.
• A distribution from a traditional or
SIMPLE IRA that was converted to a
Roth IRA.
• A rollover from a qualified retirement
plan to a Roth IRA.
• A distribution of certain excess IRA
contributions (see the instructions for
lines 15 and 23 on page 4).
Note. Any related earnings withdrawn
with excess contributions are subject to
the additional tax on early distributions
if you were under age 591/2 at the time
of the distribution.
• A distribution of excess contributions
from a qualified cash or deferred
arrangement.
• A distribution of excess aggregate
contributions to meet nondiscrimination
requirements for employee
contributions and matching employer
contributions.

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Exception for Roth IRA
Distributions
If you received an early distribution
from a Roth IRA, first allocate the
amount on your 2008 Form 8606, line
19 (not including any qualified disaster
recovery assistance distributions or
qualified recovery assistance
distributions), in the order shown, to the
amounts on the lines listed below (to
the extent a prior year distribution was
not allocable to the amount).
• Your 2008 Form 8606, line 20.
• Your 2008 Form 8606, line 22*.
• Your 1998 Form 8606, line 16.
• Your 1998 Form 8606, line 15.
• Your 1999 Form 8606, line 16.
• Your 1999 Form 8606, line 15.
• Your 2000 Form 8606, line 16.
• Your 2000 Form 8606, line 15.
• Your 2001 Form 8606, line 18.
• Your 2001 Form 8606, line 17.
• Your 2002 Form 8606, line 18.
• Your 2002 Form 8606, line 17.
• Your 2003 Form 8606, line 18.
• Your 2003 Form 8606, line 17.
• Your 2004 Form 8606, line 18.
• Your 2004 Form 8606, line 17.
• Your 2005 Form 8606, line 18.
• Your 2005 Form 8606, line 17.
• Your 2006 Form 8606, line 18.
• Your 2006 Form 8606, line 17.
• Your 2007 Form 8606, line 18.
• Your 2007 Form 8606, line 17.
• Your 2008 Form 8606, line 18.
• Your 2008 Form 8606, line 17.
• Your 2008 Form 8606, line 25c.
*If applicable, reduce this amount by
any amounts attributable to qualified
disaster recovery assistance
distributions or qualified recovery
assistance distributions.
Then, include on line 1 of Form 5329
the amount from your 2008 Form 8606,
line 25c, plus the amount, if any,

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allocated to the amount on your 2008
Form 8606, line 20, and the amount, if
any, allocated to line 18 of your 2004
through 2008 Forms 8606. Also include
the amount, if any, from your 2008
Form 8606, line 20, on Form 5329, line
2, and enter exception number 09.
Example. You converted $20,000
from a traditional IRA to a Roth IRA in
2004 and converted $10,000 in 2005.
Your 2004 Form 8606 had $5,000 on
line 17 and $15,000 on line 18 and your
2005 Form 8606 had $3,000 on line 17
and $7,000 on line 18. You made Roth
IRA contributions of $2,000 for 2004
and 2005. You did not make any Roth
IRA conversions or contributions for
2006 through 2008, or take any Roth
IRA distributions before 2008. On July
9, 2008, at age 53, you took a $33,000
distribution from your Roth IRA. Your
2008 Form 8606 shows $33,000 on line
19; $29,000 on line 23 ($33,000 minus
$4,000 for your contributions on line 22)
and $0 on line 25a ($29,000 minus your
basis in conversions of $30,000). First,
$4,000 of the $33,000 is allocated to
your 2008 Form 8606, line 22; then
$15,000 to your 2004 Form 8606, line
18; $5,000 to your 2004 Form 8606,
line 17; and $7,000 to your 2005 Form
8606, line 18. The remaining $2,000 is
allocated to the $3,000 on your 2005
Form 8606, line 17. On line 1, enter
$22,000 ($15,000 allocated to your
2004 Form 8606, line 18, plus the
$7,000 that was allocated to your 2005
Form 8606, line 18). If you take a Roth
IRA distribution in 2009, the first $1,000
will be allocated to the $1,000
remaining from your 2005 Form 8606,
line 17, and will not be subject to the
additional tax on early distributions.
Additional information. For more
details, see Are Distributions Taxable?
in Pub. 590.

Line 2
The additional tax on early distributions
does not apply to the distributions
described below. Enter on line 2 the
amount that can be excluded. In the
space provided, enter the applicable
exception number (01-12).
No. Exception
01 Qualified retirement plan distributions
(does not apply to IRAs) if you
separated from service in or after the
year you reach age 55 (age 50 for
qualified public safety employees).
02 Distributions made as part of a series of
substantially equal periodic payments
(made at least annually) for your life (or
life expectancy) or the joint lives (or joint
life expectancies) of you and your
designated beneficiary (if from an
employer plan, payments must begin
after separation from service).
03 Distributions due to total and permanent
disability.
04 Distributions due to death (does not
apply to modified endowment contracts).

05 Qualified retirement plan distributions up
to (1) the amount you paid for
unreimbursed medical expenses during
the year minus (2) 7.5% of your
adjusted gross income for the year.
06 Qualified retirement plan distributions
made to an alternate payee under a
qualified domestic relations order (does
not apply to IRAs).
07 IRA distributions made to unemployed
individuals for health insurance
premiums.
08 IRA distributions made for higher
education expenses.
09 IRA distributions made for purchase of a
first home, up to $10,000.
10 Distributions due to an IRS levy on the
qualified retirement plan.
11 Qualified distributions to reservists while
serving on active duty for at least 180
days.
12 Other (see Other, below). Also, enter
this code if more than one exception
applies.

Other. The following exceptions also
apply.
• Distributions incorrectly indicated as
early distributions by code 1, J, or S in
box 7 of Form 1099-R. Include on line 2
the amount you received when you
were age 591/2 or older.
• Distributions from a section 457 plan,
which are not from a rollover from a
qualified retirement plan.
• Distributions from a plan maintained
by an employer if:
1. You separated from service by
March 1, 1986;
2. As of March 1, 1986, your entire
interest was in pay status under a
written election that provides a specific
schedule for distribution of your entire
interest; and
3. The distribution is actually being
made under the written election.
• Distributions that are dividends paid
with respect to stock described in
section 404(k).
• Distributions from annuity contracts
to the extent that the distributions are
allocable to the investment in the
contract before August 14, 1982.
For additional exceptions that apply
to annuities, see Pub. 575.

Line 4
If any amount on line 3 was a
distribution from a SIMPLE IRA
received within 2 years from the date
you first participated in the SIMPLE IRA
plan, you must multiply that amount by
25% instead of 10%. These
distributions are included in boxes 1
and 2a of Form 1099-R and are
designated with code S in box 7.

-3-

Part II—Additional Tax
on Certain Distributions
From Education
Accounts
An economic stimulus payment

TIP that was directly deposited into

an education account can be
fully or partly withdrawn by the due date
(including extensions) of your 2008 tax
return. For a Coverdell ESA, the
withdrawal can be made by the later of
the above date or June 1, 2009. The
amount withdrawn will not be subject to
any additional tax or penalty.

Line 6
This tax does not apply to distributions
that are includible in income if:
• Due to the death or disability of the
beneficiary;
• Made on account of a tax-free
scholarship, allowance, or payment
described in section 25A(g)(2);
• Made because of attendance by the
beneficiary at a U.S. military academy.
This exception applies only to the
extent that the distribution does not
exceed the costs of advanced
education (as defined in title 10 of the
U.S. Code) at the academy; or
• Included in income because you
used the qualified education expenses
to figure the Hope and lifetime learning
credit.
Enter on line 6 the portion of line 5
that is excluded.

Part III—Additional Tax
on Excess Contributions
to Traditional IRAs
If you contributed more for 2008 than is
allowable or you had an amount on line
17 of your 2007 Form 5329, you may
owe this tax. But you may be able to
avoid the tax on any 2008 excess
contributions (see the instructions for
line 15 on page 4).
An economic stimulus payment

TIP that was directly deposited into

an IRA can be fully or partly
withdrawn by the due date (including
extensions) of your 2008 tax return.
The amount withdrawn will not be
subject to any additional tax or penalty.

Line 9
Enter the amount from line 16 of your
2007 Form 5329 only if the amount on
line 17 of your 2007 Form 5329 is more
than zero.

Line 10
If you contributed less to your
traditional IRAs for 2008 than your
contribution limit for traditional IRAs,
enter the difference.
If you are not married filing jointly,
your contribution limit for traditional
IRAs is the smaller of your taxable
compensation (see page 2) or $5,000

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($6,000 if age 50 or older at the end of
2008). If you are married filing jointly,
your contribution limit is generally
$5,000 ($6,000 if age 50 or older at the
end of 2008) and your spouse’s
contribution limit is $5,000 ($6,000 if
age 50 or older at the end of 2008). But
if the combined taxable compensation
for you and your spouse is less than
$10,000 ($11,000 if one spouse is 50 or
older at the end of 2008; $12,000 if
both spouses are 50 or older at the end
of 2008), see How Much Can Be
Contributed? in Pub. 590 for special
rules.
If you participated in a 401(k)
TIP plan and the employer who
maintained the plan went into
bankruptcy in an earlier year, you may
be able to contribute up to $8,000 to
your traditional IRA. See Pub. 590 for
more details.
Also include on line 11a or 11b of
the IRA Deduction Worksheet in the
instructions for Form 1040, line 32, the
smaller of (a) Form 5329, line 10, or (b)
the excess, if any, of Form 5329, line 9,
over the sum of Form 5329, lines 11
and 12.

Line 11
Enter on line 11 any withdrawals from
your traditional IRAs that are included
in your income. Do not include any
withdrawn contributions reported on
line 12.

Line 12
Enter any excess contributions to your
traditional IRAs for 1976 through 2006
that you had returned to you in 2008
and any 2007 excess contributions that
you had returned to you in 2008 after
the due date (including extensions) of
your 2007 income tax return, that are
included on line 9, if:
• You did not claim a deduction for the
excess contributions and no traditional
IRA deduction was allowable (without
regard to the modified AGI limitation)
for the excess contributions, and
• The total contributions to your
traditional IRAs for the tax year for
which the excess contributions were
made were not more than: (a) $4,000
for 2007 or 2006 ($5,000 if age 50 or
older at the end of the year), (b) $4,000
for 2005 ($4,500 if age 50 or older at
the end of the year), (c) $3,000 for
years after 2001 and before 2005
($3,500 if age 50 or older at the end of
the year), (d) $2,000 for years after
1996 and before 2002, or (e) $2,250 for
years before 1997. If the total
contributions for the year included
employer contributions to a SEP,
increase that amount by the smaller of
the amount of the employer
contributions or $45,000 ($44,000 for
2006, $42,000 for 2005, $41,000 for
2004, $40,000 for 2003 and 2002,
$35,000 for 2001, or $30,000 for years
before 2001).

Line 15

Line 18

Enter the excess of your contributions
to traditional IRAs for 2008 (unless
withdrawn — see below) over your
contribution limit for traditional IRAs.
See the instructions for line 10 that
begin on page 3 to figure your
contribution limit for traditional IRAs.
Any amount you contribute for the year
in which you reach age 701/2 or a later
year is an excess contribution because
your contribution limit is zero. Do not
include rollovers in figuring your excess
contributions.

Enter the amount from line 24 of your
2007 Form 5329 only if the amount on
line 25 of your 2007 Form 5329 is more
than zero.

You can withdraw some or all of your
excess contributions for 2008 and they
will not be treated as having been
contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2008
tax return,
• You do not claim a traditional IRA
deduction for the withdrawn
contributions, and
• You withdraw any earnings on the
withdrawn contribution and include the
earnings in gross income (see the
Instructions for Form 8606 for details).
Also, if you had not reached age 591/2
at the time of the withdrawal, include
the earnings as an early distribution on
line 1 of Form 5329 for the year in
which you report the earnings.
If you timely filed your return without
withdrawing the excess contributions,
you can still make the withdrawal no
later than 6 months after the due date
of your tax return, excluding extensions.
If you do, file an amended return with
“Filed pursuant to section 301.9100-2”
written at the top. Report any related
earnings for 2008 on the amended
return and include an explanation of the
withdrawal. Make any other necessary
changes on the amended return (for
example, if you reported the
contributions as excess contributions
on your original return, include an
amended Form 5329 reflecting that the
withdrawn contributions are no longer
treated as having been contributed).

Part IV—Additional Tax
on Excess Contributions
to Roth IRAs
If you contributed more to your Roth
IRA for 2008 than is allowable or you
had an amount on line 25 of your 2007
Form 5329, you may owe this tax. But
you may be able to avoid the tax on
any 2008 excess contributions (see the
instructions for line 23 that begin on this
page).
An economic stimulus payment

TIP that was directly deposited into

a Roth IRA can be fully or partly
withdrawn by the due date (including
extensions) of your 2008 tax return.
The amount withdrawn will not be
subject to any additional tax or penalty.

-4-

Line 19
If you contributed less to your Roth
IRAs for 2008 than your contribution
limit for Roth IRAs, enter the difference.
Your contribution limit for Roth IRAs is
generally your contribution limit for
traditional IRAs (see the instructions for
line 10 that begin on page 3) reduced
by the amount you contributed to
traditional IRAs. But your contribution
limit for Roth IRAs may be further
reduced or eliminated if your modified
AGI for Roth IRA purposes is over:
• $159,000 if married filing jointly or
qualifying widow(er),
• $0 if married filing separately and you
lived with your spouse at any time in
2008, or
• $101,000 for any other taxpayer.
See Pub. 590 for details.

Line 20
Generally, enter the amount from Form
8606, line 19, plus any qualified
distributions. But if you withdrew the
entire balance of all your Roth IRAs, do
not enter less than the amount on Form
5329, line 18 (see Example).
Example. You contributed $1,000
to a Roth IRA in 2006, your only
contribution to Roth IRAs. In 2008, you
discovered you were not eligible to
contribute to a Roth IRA in 2006. On
September 9, 2008, you withdrew $800,
the entire balance in the Roth IRA. You
must file Form 5329 for 2006 and 2007
to pay the additional taxes for those
years. When you complete Form 5329
for 2008, you enter $1,000 (not $800)
on line 20, because you withdrew the
entire balance.

Line 23
Enter the excess of your contributions
to Roth IRAs for 2008 (unless
withdrawn — see below) over your
contribution limit for Roth IRAs (see the
instructions for line 19 on this page).
Any amounts converted (including
any amounts rolled over from a
qualified retirement plan) to a Roth IRA
are excess Roth IRA contributions if
your modified AGI for Roth IRA
purposes is over $100,000 or your filing
status is married filing separately and
you lived with your spouse at any time
in 2008. See Recharacterizations in the
Instructions for Form 8606 for details.
Do not include rollovers from another
Roth IRA or designated Roth account in
figuring your excess contributions.
You can withdraw some or all of your
excess contributions for 2008 and they
will not be treated as having been
contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2008
tax return, and

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• You withdraw any earnings on the

withdrawn contributions and include the
earnings in gross income (see the
Instructions for Form 8606 for details).
Also, if you had not reached age 591/2
at the time of the withdrawal, include
the earnings as an early distribution on
line 1 of Form 5329 for the year in
which you report the earnings.
Note. A Form 5329 is not required if
the excess Roth IRA contributions are
not treated as having been contributed
and you do not have any earnings to
report as early distributions on the form.
If you timely filed your return without
withdrawing the excess contributions,
you can still make the withdrawal no
later than 6 months after the due date
of your tax return, excluding extensions.
If you do, file an amended return with
“Filed pursuant to section 301.9100-2”
written at the top. Report any related
earnings for 2008 on the amended
return and include an explanation of the
withdrawal. Make any other necessary
changes on the amended return (for
example, if you reported the
contributions as excess contributions
on your original return, include an
amended Form 5329 reflecting that the
withdrawn contributions are no longer
treated as having been contributed).

Part V—Additional Tax
on Excess Contributions
to Coverdell ESAs
If the contributions to your Coverdell
ESAs for 2008 were more than is
allowable or you had an amount on line
33 of your 2007 Form 5329, you may
owe this tax. But you may be able to
avoid the tax on any 2008 excess
contributions (see the instructions for
line 31 on this page).
An economic stimulus payment

TIP that was directly deposited into

a Coverdell ESA can be fully or
partly withdrawn by the later of the due
date (including extensions) of your
2008 tax return or June 1, 2009. The
amount withdrawn will not be subject to
any additional tax or penalty.

Line 31
Enter the excess of the contributions to
your Coverdell ESAs for 2008 (not
including rollovers) over your
contribution limit for Coverdell ESAs.
Your contribution limit is the smaller of
$2,000 or the sum of the maximum
amounts allowed to be contributed by
the contributor(s) to your Coverdell
ESAs. The maximum contribution may
be limited based on the contributor’s
modified AGI. See Pub. 970 for details.
You can withdraw some or all of the
excess contributions for 2008 and they
will not be treated as having been
contributed if:
• You make the withdrawal before
June 1, 2009, and
• You also withdraw any income
earned on the withdrawn contributions
and include the earnings in gross
income for the year in which the
contribution was made.
If you filed your return without
withdrawing the excess contributions,
you can still make the withdrawal, but it
must be made before June 1, 2009. If
you do, file an amended return. Report
any related earnings for 2008 on the
amended return and include an
explanation of the withdrawal. Make
any other necessary changes on the
amended return (for example, if you
reported the contributions as excess
contributions on your original return,
include an amended Form 5329
reflecting that the withdrawn
contributions are no longer treated as
having been contributed).

Part VI—Additional Tax
on Excess Contributions
to Archer MSAs
If you or your employer contributed
more to your Archer MSA for 2008 than
is allowable or you had an amount on
line 41 of your 2007 Form 5329, you
may owe this tax. But you may be able
to avoid the tax on any 2008 excess
contributions (see the instructions for
line 39 on this page).
An economic stimulus payment

TIP that was directly deposited into

Enter the amount from line 32 of your
2007 Form 5329 only if the amount on
line 33 of your 2007 Form 5329 is more
than zero.

an Archer MSA can be fully or
partly withdrawn by the due date
(including extensions) of your 2008 tax
return. The amount withdrawn will not
be subject to any additional tax or
penalty.

Line 27

Line 34

Enter the excess, if any, of the
maximum amount that can be
contributed to your Coverdell ESAs for
2008 (see the instructions for line 31 on
this page) over the amount actually
contributed for 2008.

Enter the amount from line 40 of your
2007 Form 5329 only if the amount on
line 41 of your 2007 Form 5329 is more
than zero.

Line 26

Line 28
Enter your total distributions from
Coverdell ESAs in 2008. Do not include
rollovers or returned excess
contributions.

Line 35
If your contribution limit for your Archer
MSAs (the smaller of line 5 or line 6 of
Form 8853, Archer MSAs and
Long-Term Care Insurance Contracts)
is greater than the contributions to your
Archer MSAs for 2008, enter the

-5-

difference on line 35. Also include on
your 2008 Form 8853, line 7, the
smaller of:
• Form 5329, line 35, or
• The excess, if any, of Form 5329,
line 34, over Form 5329, line 36.

Line 39
Enter the excess of your contributions
to your Archer MSA for 2008 (from
Form 8853, line 4) over your
contribution limit (the smaller of line 5 or
line 6 of Form 8853). Also include on
line 39 any excess contributions your
employer made. See the Instructions
for Form 8853 for details.
However, you can withdraw some or
all of the excess contributions for 2008
and they will not be treated as having
been contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2008
tax return, and
• You withdraw any income earned on
the withdrawn contributions and include
the earnings in gross income for the
year in which you receive the withdrawn
contributions and earnings.
Include the withdrawn contributions
and related earnings on Form 8853,
lines 8a and 8b.
If you timely filed your return without
withdrawing the excess contributions,
you can still make the withdrawal no
later than 6 months after the due date
of your tax return, excluding extensions.
If you do, file an amended return with
“Filed pursuant to section 301.9100-2”
written at the top. Report any related
earnings for 2008 on the amended
return and include an explanation of the
withdrawal. Make any other necessary
changes on the amended return (for
example, if you reported the
contributions as excess contributions
on your original return, include an
amended Form 5329 reflecting that the
withdrawn contributions are no longer
treated as having been contributed).

Part VII—Additional Tax
on Excess Contributions
to Health Savings
Accounts (HSAs)
If you, someone on your behalf, or your
employer contributed more to your
HSAs for 2008 than is allowable or you
had an amount on line 49 of your 2007
Form 5329, you may owe this tax. But
you may be able to avoid the tax on
any 2008 excess contributions (see the
instructions for line 47 on page 6).
An economic stimulus payment

TIP that was directly deposited into

an HSA can be fully or partly
withdrawn by the due date (including
extensions) of your 2008 tax return.
The amount withdrawn will not be
subject to any additional tax or penalty.

Line 43
If your contribution limit for your HSAs
(line 12 of Form 8889, Health Savings

Page 6 of 6

Instructions for Form 5329

10:00 - 5-JAN-2009

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Accounts (HSAs)) is greater than the
contributions you made to your HSAs
(or those made on your behalf) for 2008
(Form 8889, line 2), enter the difference
on line 43. Also include on your 2008
Form 8889, line 13, the smaller of:
• Form 5329, line 43, or
• The excess, if any, of Form 5329,
line 42, over Form 5329, line 44.

Line 47
Enter the excess of your contributions
(including those made on your behalf)
to your HSAs for 2008 (Form 8889, line
2) over your contribution limit (Form
8889, line 12). Also include on line 47
any excess contributions your employer
made. See the instructions for Form
8889 for details.
However, you can withdraw some or
all of the excess contributions for 2008
and they will not be treated as having
been contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2008
return, and
• You withdraw any income earned on
the withdrawn contributions and include
the earnings in gross income for the
year in which you receive the withdrawn
contributions and earnings.
Include the withdrawn contributions
and related earnings on Form 8889,
lines 14a and 14b.
If you timely filed your return without
withdrawing the excess contributions,
you can still make the withdrawal no
later than 6 months after the due date
of your tax return, excluding extensions.
If you do, file an amended return with
“Filed pursuant to section 301.9100-2”
written at the top. Report any related
earnings for 2008 on the amended
return and include an explanation of the
withdrawal. Make any other necessary
changes on the amended return (for
example, if you reported the
contributions as excess contributions
on your original return, include an
amended Form 5329 reflecting that the
withdrawn contributions are no longer
treated as having been contributed).

Part VIII—Additional Tax
on Excess Accumulation
in Qualified Retirement
Plans (Including IRAs)
You owe this tax if you do not receive
the minimum required distribution from
your qualified retirement plan, including
an IRA or an eligible section 457
deferred compensation plan. The
additional tax is 50% of the excess
accumulation — the difference between
the amount that was required to be
distributed and the amount that was
actually distributed.

Required Distributions
IRA (other than a Roth IRA). You
must start receiving distributions from

your IRA by April 1 of the year following
the year in which you reach age 701/2.
At that time, you can receive your entire
interest in the IRA or begin receiving
periodic distributions. If you choose to
receive periodic distributions, you must
receive a minimum required distribution
each year. You can figure the minimum
required distribution by dividing the
account balance of your IRAs (other
than Roth IRAs) on December 31 of the
year preceding the distribution by the
applicable life expectancy. For
applicable life expectancies, see Pub.
590.
If the trustee, custodian, or issuer of
your IRA informs you of the minimum
required distribution, you can use that
amount.
If you have more than one IRA, you
can take the minimum required
distribution from any one or more of the
individual IRAs.
For more details on the minimum
distribution rules (including examples),
see Pub. 590.
A qualified charitable distribution
will count towards your
CAUTION minimum required distribution.
See Pub. 590 for more information.
Roth IRA. There are no minimum
required distributions during the lifetime
of the owner of a Roth IRA. Following
the death of the Roth IRA owner,
required distribution rules apply to the
beneficiary. See Pub. 590 for details.
Qualified retirement plans (other
than IRAs) and eligible section 457
deferred compensation plans. In
general, you must begin receiving
distributions from your plan no later
than April 1 following the later of (a) the
year in which you reach age 701/2 or (b)
the year in which you retire.
Exception. If you owned more than
5% of the employer maintaining the
plan, you must begin receiving
distributions no later than April 1 of the
year following the year in which you
reach age 701/2, regardless of when you
retire.
Your plan administrator should figure
the amount that must be distributed
each year.
Waiver of tax. The IRS can waive part
or all of this tax if you can show that
any shortfall in the amount of
distributions was due to reasonable
error and you are taking appropriate
steps to remedy the shortfall. If you
believe you qualify for this relief, attach
a statement of explanation and file
Form 5329 as follows.
1. Complete lines 50 and 51 as
instructed.
2. Enter “RC” and the amount you
want waived in parentheses on the
dotted line next to line 52. Subtract this
amount from the total shortfall you
figured without regard to the waiver,
and enter the result on line 52.

!

-6-

3. Complete line 53 as instructed.
You must pay any tax due that is
reported on line 53.
The IRS will review the information
you provide and decide whether to
grant your request for a waiver.
For more details, see Pub. 590.
For 2009, you are not required
TIP to take a minimum distribution
from your employer-provided
qualified retirement plan or IRA. For
more details, see Pub. 575 or Pub. 590.
Privacy Act and Paperwork
Reduction Act Notice. We ask for the
information on this form to carry out the
Internal Revenue laws of the United
States. We need this information to
ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax. You are
required to give us this information if
you made certain contributions or
received certain distributions from
qualified plans, including IRAs, and
other tax-favored accounts. Our legal
right to ask for the information
requested on this form is sections
6001, 6011, 6012(a), and 6109 and
their regulations. The reason we need
your social security number is to secure
proper identification in order to gain
access to the tax information in our files
to properly process the form. If you do
not file this information, or provide
incomplete or false information, you
may be subject to penalties.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions
must be retained as long as their
contents may become material in the
administration of any Internal Revenue
law. Generally, tax returns and return
information are confidential, as required
by section 6103. However, we may give
this information to the Department of
Justice for civil and criminal litigation,
and to cities, states, and the District of
Columbia to carry out their tax laws. We
may also disclose this information to
other countries under a tax treaty, to
federal and state agencies to enforce
federal nontax criminal laws, or to
federal law enforcement and
intelligence agencies to combat
terrorism.
The average time and expenses
required to complete and file this form
will vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making
this form simpler, we would be happy to
hear from you. See the instructions for
your income tax return.