Form 5329

What Is Form 5329?

If you are wondering what is a 5329 tax form, you may need to use the extra taxes report. The document was created by the Department of the Treasury Internal Revenue Service and is widely used by taxpayers who live and work in the US. The 5329 form is also known as the Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. It has to be attached to the tax report document 1040, 1040-NR, or 1040-SR.

While it sounds complicated, it is quite simple to understand. Usually, this form is completed by an individual who has an education savings account or retirement plan and has to report whether they need to pay to the IRS the 10 percent early distribution or any other penalty.

While form 5329 IRS is not that complicated to fill, if you don’t do this, you can increase the penalty you owe. It must be provided by the deadline to the IRS. The department records each specific case.

What Do I Need the Form 5329 For?

• The IRS form 5329 is used in specific cases and does not spread to every tax payer. If you want to receive the right tax treatment including the distribution from the retirement plan, you have to file the document;
• You could use the 5329 tax form together with the education savings account. If you hesitate with filing the form, you will be fined. If you received ESA distribution but did not use it for the eligible expenses on education, you have to use the document;
• You need to learn what is form 5329 used for in case you receive the retirement account distribution in case it does not meet any penalty exception or if the exception is not mentioned in the 1099-R form.

How to Fill Out Form 5329?

This section explains how to fill out form 5329 in detail. The form is only 2 pages long and does not look so complicated, but you need to be direct with numbers. If you have miscalculations on the form, the IRS can fine you. As for the place where you can get IRS tax form 5329, you have two options: go to the IRS direct website or use the library of PDFLiner, the editor that allows you to fill documents online.

PDFLiner is the simplest way to get the document and complete it. It contains tools you can use even to create electronic signatures recognized by officials. Once you complete it, you can save it on your device, and send it online to the IRS or by email. You may also print it and send it by regular mail if you want. Keep in mind that regular mail takes more time to be delivered. Now, follow IRS instructions for form 5329:

1. Provide information on the individual, including the name that you’ve mentioned in the tax report, your social security number, and your home address. If you file the form with the tax return you don’t have to repeat the address in this document;
2. Add the information on the additional tax on the early distributions in part 1. Calculate the distributions in income, additional tax, and the subject to the tax;
3. Describe the additional tax on certain distributions from educational accounts in part 2;
4. Write down the additional tax on excess contributions to the traditional IRS in part 3;
5. Provide information on the additional tax on excess contributions to the Roth IRS in part 4;
6. Provide additional tax on excess contributions to the Coverdell ESA in part 5;
7. Describe additional tax on the excess contributions to Archer MSA in part 6;
8. Include additional tax on the excess contributions to Health Savings Accounts in part 7;
9. Provide data on additional tax on the excess contributions to the ABLE account in part 8;
10. Add the additional tax on the excess accumulation in the qualified retirement plan in part 9;
11. Put the signature and date.

Organizations That Work With Form 5329

• Department of the Treasury Internal Revenue Service.