U.S. Individual Income Tax Return

2018

Instructions for Form 5329

Department of the Treasury
Internal Revenue Service

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
2018 Form 1040 redesigned. The
2018 Form 1040 has been redesigned
and is supplemented with new
Schedules 1 through 6. These
additional schedules will be used as
needed to complete more complex tax
returns. References to Form 1040 and
its related schedules have been revised
accordingly in these instructions.

Reminder

The additional tax on early distributions
doesn’t apply to qualified 2017 disaster
distributions. See the 2018 Form 8915B
for more details.
At the time these instructions
went to print, Congress was
CAUTION considering legislation that
would provide additional tax relief for
those affected by 2018 disasters. See
IRS.gov/DisasterTaxRelief for
information and updates.

!

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.

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, except you don't have
to file Form 5329 to report a qualified
2017 disaster distribution.

Jan 17, 2019

• 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 each Form 1099-R,
you don’t have to file Form 5329.
Instead, see the instructions for
Schedule 4 (Form 1040), line 59, in the
Instructions for Form 1040, or Form
1040NR, line 57, 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), 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 2018 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 2017 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.
If you rolled over part or all of a

TIP 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, lines 4a and
4b, or Form 1040NR, lines 17a and 17b,
for how to report the rollover.

Cat. No. 13330R

When and Where To File

File Form 5329 with your 2018 Form
1040 or Form 1040NR by the due date,
including extensions, of your Form 1040
or Form 1040NR.
If you don’t have to file a 2018
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. 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
“2018 Form 5329” on the check. For
information on other payment options,
including credit or debit card payments,
see the instructions for Form 1040 or
Form 1040NR, 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 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.
Note. Modified endowment contracts
aren’t 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.
Qualified retirement plan 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 10%
additional tax on early distributions.
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 hadn’t rolled
them into a Roth IRA. The 10%
additional tax on early distributions
doesn’t apply. For more information,
see chapter 2 of Pub. 590-A.
Pursuant to Rev. Proc. 2016-47 in
Internal Revenue Bulletin 2016-37,
available at IRS.gov/irb/
2016-37_IRB#RP-2016–47, you may
make a written certification to a plan
administrator or an IRA trustee that you
missed the 60-day rollover contribution
deadline because of one or more of the
11 reasons listed in Rev. Proc. 2016-47.
See Rev. Proc. 2016-47 for information
on how to self-certify for a waiver. Also
see Time Limit for Making a Rollover
Contribution under Can You Move
Retirement Plan Assets? in Pub. 590-A
for more information on ways to get a
waiver of the 60-day rollover
requirement.
Note. The following are effective
January 1, 2018.
• If a plan loan offset is due to plan
termination or severance from
employment, you have until the due
date, including extensions, to file your
tax return for the tax year in which the
offset occurs to roll over the plan loan
offset amount.
• If a retirement account has been
wrongfully levied by the IRS, the amount
returned plus interest on such amount
may be contributed to the account or to
an individual retirement plan (other than
an endowment contract) to which such
a rollover contribution is permitted. You
have until the due date, excluding
extensions, for filing your tax return for
the tax year in which the amount is
returned, to make the contribution.

In-plan Roth rollover. If you are a
participant in a 401(k), 403(b), or
governmental 457(b) plan, your plan
may permit you to roll over amounts
from those plans to a designated Roth
account within the same plan. The
rollover of any untaxed amounts must
be included in income. The 10%
additional tax on early distributions
doesn’t apply. For more information,
see In-plan Roth rollovers under
Rollovers in Pub. 575.
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 any differential wage payments,
and all taxable alimony received under a
decree of divorce or separate
maintenance as compensation.
Compensation doesn’t include any
amounts received as a pension or
annuity and doesn’t include any amount
received as deferred compensation.
Taxable compensation is your
compensation that is included in gross
income reduced by any deductions on
Schedule 1 (Form 1040), lines 27 and
28, or Form 1040NR, lines 27 and 28,
but not by any loss from
self-employment.
ABLE rollover. For an ABLE account,
a rollover means a contribution to an
ABLE account of a designated
beneficiary (or of an eligible individual
who is a member of the family of the
designated beneficiary) of all or a
portion of an amount withdrawn from the
designated beneficiary's ABLE account.
The contribution must be made within
60 days of the withdrawal date; and, if
the rollover is to the designated
beneficiary's ABLE account, there must
have been no rollover to an ABLE
account of that beneficiary within the
prior 12 months. An ABLE rollover
doesn’t include a contribution to an
ABLE account of funds distributed from
a QTP account.
Program-to-program transfer. For
an ABLE account, a
program-to-program transfer includes
the direct transfer of the entire balance
of an ABLE account into a second ABLE
account if both accounts have the same
designated beneficiary and the first
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ABLE account is closed upon
completion of the transfer. A
program-to-program transfer also
occurs when part or all of the balance in
an ABLE account is transferred to the
ABLE account of an eligible individual
who is a member of the family of the
former designated beneficiary, as long
as no intervening distribution is made to
the designated beneficiary.

Additional Information

See the following publications for more
information about the items in these
instructions.
• Pub. 560, Retirement Plans for Small
Business.
• Pub. 575, Pension and Annuity
Income.
• Pub. 590-A, Contributions to
Individual Retirement Arrangements
(IRAs).
• Pub. 590-B, Distributions from
Individual Retirement Arrangements
(IRAs).
• Pub. 721, Tax Guide to U.S. Civil
Service Retirement Benefits.
• Pub. 969, Health Savings Accounts
and Other Tax-Favored Health Plans.
• Pub. 970, Tax Benefits for Education.
• Pub. 976, Disaster Relief.

Specific Instructions
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
Schedule 4 (Form 1040), line 59.
Amended returns. If you are filing an
amended 2018 Form 5329, check the
box at the top of page 1 of the form.
Don’t use the 2018 Form 5329 to amend
your return for any other year. For
information about amending a Form
5329 for a prior year, see Prior tax
years, earlier.

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 the 10% additional tax. But see
Distributions from a designated Roth
account and Distributions from Roth
IRAs, later.
The additional tax on early
distributions doesn’t apply to any of the
following.

Instructions for Form 5329 (2018)

• A qualified 2017 disaster distribution.
See the 2018 Form 8915B for more
details.
• A qualified HSA funding distribution
from an IRA (other than a SEP or
SIMPLE IRA). See Qualified HSA
funding distribution under Health
Savings Accounts in 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.
• An in-plan Roth rollover.
• A distribution of certain excess IRA
contributions (see the instructions for
line 15, later, and the instructions for
line 23, later).
Note. Any related IRA earnings
withdrawn with excess IRA contributions
are subject to the 10% additional tax on
early distributions if you were under age
591/2 at the time of the distribution.

• A distribution of excess deferrals.
Excess deferrals include distributions of
excess contributions from a qualified
cash or deferred arrangement (section
401(k) plan), excess contributions from
a tax-sheltered annuity (section 403(b)
plan), excess contributions from a
salary reduction SEP IRA, and excess
contributions from a SIMPLE IRA.
• A distribution of excess aggregate
contributions to meet nondiscrimination
requirements for employee
contributions and matching employer
contributions.
• A distribution from an eligible
governmental section 457 deferred
compensation plan to the extent the
distribution isn’t attributable to an
amount transferred from a qualified
retirement plan.
See the instructions for line 2, later,
for other distributions that aren’t subject
to the additional tax.

Line 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 2018; or
• A modified endowment contract.
Certain prohibited transactions
involving your IRA, such as borrowing
from your IRA or pledging your IRA
assets as security for a loan, are
considered to be distributions and are
generally subject to the additional tax on
early distributions. See Prohibited
Instructions for Form 5329 (2018)

Transactions under What Acts Result in
Penalties or Additional Taxes? in Pub.
590-B for details.
Distributions from a designated
Roth account. If you received an early
distribution from your designated Roth
account, include on line 1 the amount of
the distribution that you must include in
your income. You will find this amount in
box 2a of your 2018 Form 1099-R. You
also may need to include a recapture
amount on line 1 if you have ever made
an in-plan Roth rollover (discussed
later).
If you never made an in-plan

TIP Roth rollover, you need to

include on line 1 of this form
only the amount from box 2a of your
2018 Form 1099-R reporting the early
distribution.
Recapture amount subject to the
additional tax on early distributions.
If you have ever made an in-plan Roth
rollover and you received an early
distribution for 2018, the recapture
amount to include on line 1 is a portion
of the amounts you rolled over.
The recapture amount that you must
include on line 1 won’t exceed the
amount of your early distribution; and,
for purposes of determining this
recapture amount, you will allocate a
rollover amount (or portion thereof) to an
early distribution only once.
For more information about the
recapture amount for early distributions
from a designated Roth account,
including how to figure it, see Tax on
Early Distributions under Special
Additional Taxes in Pub. 575.
Distributions from Roth IRAs. If you
received an early distribution from your
Roth IRAs, include on line 1 the part of
the distribution that you must include in
your income. You will find this amount
on line 25c of your 2018 Form 8606.
You also will need to include on line 1
the following amounts.
• A qualified first-time homebuyer
distribution from line 20 of your 2018
Form 8606. Also include this amount on
line 2 and enter exception number 09.
• Recapture amounts attributable to
any conversions or rollovers to your
Roth IRAs in 2014 through 2018. See
Recapture amount subject to the
additional tax on early distributions next.
If you didn’t have a qualified

TIP first-time homebuyer distribution

in 2018, and you didn’t convert
or roll over an amount to your Roth IRAs
in 2014 through 2018, you only need to
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include the amount from line 25c of your
2018 Form 8606 on line 1 of this form.
Recapture amount subject to the
additional tax on early distributions.
If you converted or rolled over an
amount to your Roth IRAs in 2014
through 2018 and you received an early
distribution for 2018, the recapture
amount you must include on line 1 is the
amount, if any, of the early distribution
allocated to the taxable portion of your
2014 through 2018 conversions or
rollovers.
Generally, an early distribution is
allocated to your Roth IRA contributions
first, then to your conversions and
rollovers on a first-in, first-out basis. For
each conversion or rollover, you must
first allocate the early distribution to the
portion that was subject to tax in the
year of the conversion or rollover, and
then to the portion that wasn’t subject to
tax. The recapture amount is the sum of
the early distribution amounts that you
allocate to these taxable portions of
your conversions or rollovers.
The recapture amount that you must
include on line 1 won’t exceed the
amount of your early distribution; and,
for purposes of determining this
recapture amount, you will allocate a
contribution, conversion, or rollover
amount (or portion thereof) to an early
distribution only once.
For more information about the
recapture amount for distributions from
a Roth IRA, including how to figure it,
see Ordering Rules for Distributions
under Are Distributions Taxable? in
chapter 2 of Pub. 590-B. Also, see
Example next, which illustrates a
situation where a taxpayer must include
a recapture amount on line 1.
Example. You converted $20,000
from a traditional IRA to a Roth IRA in
2014 and converted $10,000 in 2015.
Your 2014 Form 8606 had $5,000 on
line 17 and $15,000 on line 18, and your
2015 Form 8606 had $3,000 on line 17
and $7,000 on line 18. You made Roth
IRA contributions of $2,000 for 2014
and 2015. You didn’t make any Roth
IRA conversions or contributions for
2016 through 2018, or take any Roth
IRA distributions before 2018.
On July 10, 2018, at age 53, you took
a $33,000 distribution from your Roth
IRA. Your 2018 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 2018 Form 8606,
line 22; then $15,000 to your 2014 Form
8606, line 18; $5,000 to your 2014 Form
8606, line 17; and $7,000 to your 2015
Form 8606, line 18. The remaining
$2,000 is allocated to the $3,000 on
your 2015 Form 8606, line 17. On line 1,
enter $22,000 ($15,000 allocated to
your 2014 Form 8606, line 18, plus the
$7,000 that was allocated to your 2015
Form 8606, line 18).
If you take a Roth IRA distribution in
2019, the first $1,000 will be allocated to
the $1,000 remaining from your 2015
Form 8606, line 17, and won’t be
subject to the additional tax on early
distributions.
Additional information. For more
details, see Are Distributions Taxable?
in chapters 1 and 2 of Pub. 590-B.

Line 2

The additional tax on early distributions
doesn’t apply to the distributions
described next. Enter on line 2 the
amount that you can exclude. In the
space provided, enter the applicable
exception number (01–12). If more than
one exception applies, enter 12.

Exceptions to the Additional Tax
on Early Distributions
No. Exception
01 Qualified retirement plan distributions
(doesn’t apply to IRAs) you receive
after separation from service when
the separation from service occurs 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. You are
considered disabled if you can furnish
proof that you can’t do any
substantial gainful activity because of
your physical or mental condition. A
medical determination that your
condition can be expected to result in
death or to be of long, continued, and
indefinite duration must be made.
04 Distributions due to death (doesn’t
apply to modified endowment
contracts).
05 Qualified retirement plan distributions
up to the amount you paid for
unreimbursed medical expenses
during the year minus 7.5% of your
adjusted gross income (AGI) for the
year.
06 Qualified retirement plan distributions
made to an alternate payee under a
qualified domestic relations order
(doesn’t apply to IRAs).
07 IRA distributions made to certain
unemployed individuals for health
insurance premiums.
08 IRA distributions made for qualified
higher education expenses.
09 IRA distributions made for the
purchase of a first home, up to
$10,000.
10 Qualified retirement plan distributions
made due to an IRS levy.
11 Qualified distributions to reservists
while serving on active duty for at
least 180 days.
12 Other (see Other next). Also, enter
this code if more than one exception
applies.

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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 aren’t 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 the 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 Tax on Early Distributions
under Special Additional Taxes in Pub.
575.
• Distributions that are phased
retirement annuity payments made to
federal employees. See Pub. 721 for
more information on the phased
retirement program.
• Permissible withdrawals under
section 414(w).

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.

Part II—Additional Tax on
Certain Distributions From
Education Accounts and
ABLE Accounts
Line 5

Distributions from an ABLE account
aren’t included in income if made on or
after the death of the designated
beneficiary:
• To the estate of the designated
beneficiary;

Instructions for Form 5329 (2018)

• To an heir or legatee of the
designated beneficiary; or
• To pay outstanding obligations due
for qualified disability expenses of the
designated beneficiary, including a
claim filed by a state under a state
Medicaid plan.
Line 6

The additional tax doesn’t apply to the
distributions that are includible in
income described next. Enter on line 6
the amount from line 5 that you can
exclude.
• Distributions made due to the death
or disability of the beneficiary.
• Distributions from an education
account made on account of a tax-free
scholarship, allowance, or payment
described in section 25A(g)(2).
• Distributions from an education
account made because of attendance
by the beneficiary at a U.S. military
academy. This exception applies only to
the extent that the distribution doesn’t
exceed the costs of advanced
education (as defined in title 10 of the
U.S. Code) at the academy.
• Distributions from an education
account included in income because
you used the qualified education
expenses to figure the American
opportunity and lifetime learning credits.

Part III—Additional Tax on
Excess Contributions to
Traditional IRAs
If you contributed more for 2018 than is
allowable or you had an amount on
line 17 of your 2017 Form 5329, you
may owe this tax. But you may be able
to avoid the tax on any 2018 excess
contributions (see the instructions for
line 15, later).

Line 9

Enter the amount from line 16 of your
2017 Form 5329 only if the amount on
line 17 of your 2017 Form 5329 is more
than zero.

age 50 or older at the end of 2018). But
if the combined taxable compensation
for you and your spouse is less than
$11,000 ($12,000 if one spouse is 50 or
older at the end of 2018; $13,000 if both
spouses are 50 or older at the end of
2018), see How Much Can Be
Contributed? in Pub. 590-A for special
rules.
Also include on line 11a or 11b of the
IRA Deduction Worksheet—Schedule 1,
Line 32, in the Instructions for Form
1040, or on line 11 of the IRA Deduction
Worksheet—Line 32, in the Instructions
for Form 1040NR, the smaller of:
• Form 5329, line 10; or
• The excess, if any, of Form 5329,
line 9, over the sum of Form 5329, lines
11 and 12 (which you will complete
next).

Line 11

Enter on line 11 any withdrawals from
your traditional IRAs that are included in
your income. Don’t include any
withdrawn contributions reported on
line 12.

Line 12

Enter on line 12 any amounts included
on line 9 that are excess contributions to
your traditional IRAs for 1976 through
2016 that you had returned to you in
2018 and any 2017 excess
contributions that you had returned to
you in 2018 after the due date (including
extensions) of your 2017 income tax
return if:
• You didn’t claim a deduction for the
excess contributions,
• 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 weren’t more than the amounts
shown in the following table.

Line 10

Enter the difference, if any, of your
contribution limit for traditional IRAs less
your contributions to traditional IRAs
and Roth IRAs for 2018.

If you aren’t married filing jointly, your
contribution limit for traditional IRAs is
the smaller of your taxable
compensation (defined earlier) or
$5,500 ($6,500 if age 50 or older at the
end of 2018). If you are married filing
jointly, your contribution limit is generally
$5,500 ($6,500 if age 50 or older at the
end of 2018) and your spouse's
contribution limit is $5,500 ($6,500 if
Instructions for Form 5329 (2018)

Year(s)

Contribution Contribution
limit
limit if age
50 or older at
the end of
the year

2013
through
2017

$5,500

$6,500

2008
through
2012

$5,000

$6,000

2006 or
2007

$4,000

$5,000

2005

$4,000

$4,500

2002
through
2004

$3,000

$3,500

1997
through
2001

$2,000

—

before 1997

$2,250

—

If the excess contribution to your
traditional IRA for the year included a
rollover and the excess occurred
because the information the plan was
required to give you was incorrect,
increase the contribution limit amount
for the year shown in the table above by
the amount of the excess that is due to
the incorrect information.
If the total contributions for the year
included employer contributions to a
SEP, increase the contribution limit
amount for the year shown in the table
above by the smaller of the amount of
the employer contributions or:
2017

$54,000

2015 or 2016

$53,000

2014

$52,000

2013

$51,000

2012

$50,000

2009, 2010, or 2011

$49,000

2008

$46,000

2007

$45,000

2006

$44,000

2005

$42,000

2004

$41,000

2002 or 2003

$40,000

2001

$35,000

before 2001

$30,000

Line 15

Enter the excess of your contributions to
traditional IRAs for 2018 (unless
withdrawn—discussed next) over your

-5-

contribution limit for traditional IRAs.
See the instructions for line 10, earlier,
to figure your contribution limit for
traditional IRAs. Any amount you
contribute for the year in which you
reach age 701/2 or for a later year is an
excess contribution because your
contribution limit is zero. Don’t include
rollovers in figuring your excess
contributions.
You can withdraw some or all of your
excess contributions for 2018 and they
will be treated as not having been
contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2018
tax return;
• You don’t claim a traditional IRA
deduction for the withdrawn
contributions; and
• 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 hadn’t 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 2018 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 2018 than is allowable or you had an
amount on line 25 of your 2017 Form
5329, you may owe this tax. But you
may be able to avoid the tax on any
2018 excess contributions (see the
instructions for line 23, later).

Line 18

Enter the amount from line 24 of your
2017 Form 5329 only if the amount on
line 25 of your 2017 Form 5329 is more
than zero.

Line 19

If you contributed less to your Roth IRAs
for 2018 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, earlier) 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:
• $189,000 if married filing jointly or
qualifying widow(er);
• $120,000 if single, head of
household, or married filing separately
and you didn’t live with your spouse at
any time in 2018; or
• $0 if married filing separately and you
lived with your spouse at any time in
2018.
See Can You Contribute to a Roth
IRA? in Pub. 590-A 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 of your Roth IRAs,
don’t enter less than the amount on
Form 5329, line 18 (see Example next).

Example. You contributed $1,000 to
a Roth IRA in 2016, your only
contribution to Roth IRAs. In 2018, you
discovered you weren’t eligible to
contribute to a Roth IRA in 2016. On
September 7, 2018, you withdrew $800,
the entire balance in the Roth IRA. You
must file Form 5329 for 2016 and 2017
to pay the additional taxes for those
years. When you complete Form 5329
for 2018, 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 2018 (unless
withdrawn—discussed below) over your
contribution limit for Roth IRAs. See the
instructions for line 19, earlier, to figure
your contribution limit for Roth IRAs.
Don’t include rollovers in figuring
your excess contributions.
You can withdraw some or all of your
excess contributions for 2018 and they
will be treated as not having been
contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2018
tax return; and
• You withdraw any earnings on the
withdrawn contributions and include the
earnings in gross income (see the
-6-

Instructions for Form 8606 for details).
Also, if you hadn’t 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 2018 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 2018 were more than is
allowable or you had an amount on
line 33 of your 2017 Form 5329, you
may owe this tax. But you may be able
to avoid the tax on any 2018 excess
contributions (see the instructions for
line 31, later).

Line 26

Enter the amount from line 32 of your
2017 Form 5329 only if the amount on
line 33 of your 2017 Form 5329 is more
than zero.

Line 27

Enter the excess, if any, of the
maximum amount that can be
contributed to your Coverdell ESAs for
2018 over the amount actually
contributed for 2018. Your contribution
limit is the smaller of $2,000 or the sum
of the maximum amounts the
contributor(s) to your Coverdell ESAs
are allowed to contribute. The maximum
contribution may be limited based on
the contributor's modified AGI. See
Contributions in chapter 7 of Pub. 970
for details.

Line 28

Enter your total distributions from
Coverdell ESAs in 2018. Don’t include
rollovers or withdrawn excess
contributions.

Instructions for Form 5329 (2018)

Line 31

Enter the excess of the contributions to
your Coverdell ESAs for 2018 (unless
withdrawn—discussed below) over your
contribution limit for Coverdell ESAs.
See the instructions for line 27, earlier,
to figure your contribution limit for
Coverdell ESAs.
Don’t include rollovers in figuring
your excess contributions.
You can withdraw some or all of the
excess contributions for 2018 and they
will be treated as not having been
contributed if:
• You make the withdrawal before June
1, 2019; 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, 2019. If
you do, file an amended return. Report
any related earnings for 2018 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 2018 than
is allowable or you had an amount on
line 41 of your 2017 Form 5329, you
may owe this tax. But you may be able
to avoid the tax on any 2018 excess
contributions (see the instructions for
line 39, later).

Line 34

Enter the amount from line 40 of your
2017 Form 5329 only if the amount on
line 41 of your 2017 Form 5329 is more
than zero.

Line 35

If contributions to your Archer MSAs for
2018 were less than your contribution
limit for Archer MSAs, enter the
difference on line 35. Your contribution
limit for Archer MSAs is the smaller of
line 3 or line 4 of Form 8853, Archer
MSAs and Long-Term Care Insurance
Contracts.

Instructions for Form 5329 (2018)

Also include on your 2018 Form
8853, line 5, the smaller of:
• Form 5329, line 35; or
• The excess, if any, of Form 5329,
line 34, over Form 5329, line 36.

Line 42

Line 39

Line 43

Enter the excess of your contributions to
your Archer MSA for 2018 from Form
8853, line 2 (unless
withdrawn—discussed next), over your
contribution limit (the smaller of line 3 or
line 4 of Form 8853). Also include on
line 39 any excess contributions your
employer made. See the Instructions for
Form 8853 for details.
You can withdraw some or all of the
excess contributions for 2018 and they
will be treated as not having been
contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2018
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 6a and 6b.

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 2018 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 2018 than is allowable or you
had an amount on line 49 of your 2017
Form 5329, you may owe this tax. But
you may be able to avoid the tax on any
2018 excess contributions (see the
instructions for line 47 below).

-7-

Enter the amount from line 48 of your
2017 Form 5329 only if the amount on
line 49 of your 2017 Form 5329 is more
than zero.
If contributions to your HSAs for 2018
(line 2 of Form 8889, Health Savings
Accounts (HSAs)) were less than your
contribution limit for HSAs, enter the
difference on line 43. Your contribution
limit for HSAs is the amount on line 12
of Form 8889.

Also include on your 2018 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 2018 from Form 8889,
line 2 (unless withdrawn—discussed
next), 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.

You can withdraw some or all of the
excess contributions for 2018 and they
will be treated as not having been
contributed if:
• You make the withdrawal by the due
date, including extensions, of your 2018
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 2018 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 Contributions
to ABLE Accounts

If the contributions to your ABLE
account for 2018 were more than is
allowable, you may owe tax on the net
income resulting from the excess
contribution.

Line 50

Enter the excess, if any, of the
contributions to your ABLE account for
2018 over the contribution limit. Total
contributions (including contributions
from a section 529 account) made to
your ABLE account for 2018 may not
exceed $15,000 plus, in the case of an
employed designated beneficiary, the
applicable amount under section
529A(b)(2)(B)(ii).
Don’t include ABLE rollovers or
program-to-program transfers in figuring
your excess contributions.
You won’t incur a tax on a
contribution to your ABLE account that
is in excess of the contribution limit if the
qualified ABLE program returns the
contribution, including all net income
attributable to the contribution, to the
person who made the contribution (the
“contributor”), and the contributor
receives the contribution on or before
the due date (including extensions) for
filing your federal income tax return. Any
net income distributed from the excess
contribution to the ABLE account is
includible in the gross income of the
contributor in the tax year in which the
excess contribution was made.
If the contributor receives the
contribution after you have filed your
original tax return but before the due
date (including extensions) for filing
your return, you may file an amended
return reflecting the return of the
contribution to the contributor with “Filed
pursuant to section 301.9100-2” written
at the top. Make any necessary
changes on the amended return. For
example, if you reported the contribution
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 IX—Additional Tax on
Excess Accumulation in
Qualified Retirement Plans
(Including IRAs)
You owe this tax if you don’t receive the
required minimum 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, which
is the difference between the amount
that was required to be distributed and
the amount that was actually distributed.
The tax is due for the tax year that
includes the last day by which the
minimum required distribution must be
taken.

Line 52
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
Figuring the Owner's Required Minimum
Distribution under When Must You
Withdraw Assets? in Pub. 590-B.
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
IRAs (other than Roth IRAs).
For more details on the minimum
distribution rules (including examples),
see When Must You Withdraw Assets?
in Pub. 590-B.
A qualified charitable

TIP distribution will count towards

your required minimum
distribution. See Qualified charitable
distributions under Are Distributions
Taxable? in chapter 1 of Pub. 590-B for
more information.
Trusts and estates. Include the
amount of tax, if any, on Form 1041,
Schedule G, line 7. Write “From Form
5329” and the amount of the tax to the
left of the line 7 entry space.
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 Must You Withdraw or
Use Assets? in Pub. 590-B for details.

-8-

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 reasonable 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 52 and 53 as
instructed.
2. Enter “RC” and the amount you
want waived in parentheses on the
dotted line next to line 54. Subtract this
amount from the total shortfall you
figured without regard to the waiver, and
enter the result on line 54.
3. Complete line 55 as instructed.
You must pay any tax due that is
reported on line 55.
The IRS will review the information
you provide and decide whether to grant
your request for a waiver.
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. If you do not
provide this information, or you 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
Instructions for Form 5329 (2018)

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,

Instructions for Form 5329 (2018)

and to cities, states, the District of
Columbia, and U.S. commonwealths
and possessions 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.

-9-

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.