Form 5329 - Not Included With Return
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There are some instances in which Form 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts is not required to be included with your return, even if an amount is appearing on Form 1040 U.S. Individual Income Tax Return, Line 6 for Additional tax on IRAs, other qualified retirement plans, etc.

Per IRS Instructions for Form 1040 and 1040-SR, on page 96:

Line 6

Additional Tax on IRAs, Other Qualified Retirement Plans, etc.

If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329. Also see Form 5329 and its instructions for definitions of the terms used here.

  1. You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution wasn't rolled over.
  2. Excess contributions were made to your IRA, Coverdell education savings account (ESA), Archer MSA, health savings account (HSA), or ABLE account.
  3. You received a taxable distribution from a Coverdell ESA, qualified tuition program, or ABLE account.

TIP: The requirement to receive a minimum required distribution has been waived for calendar year 2020. This includes distributions for those who have a beginning year for required minimum distribution starting in 2020. More information on required minimum distributions can be found in Pub. 590-B.

Exception. If only item (1) applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R, you don’t have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (0.10) and enter the result on line 6. The taxable amount of the distribution is the part of the distribution you reported on Form 1040, 1040-SR, or 1040-NR, line 4b or 5b, or on Form 4972. Also enter “No” in the margin to the left of line 6 to indicate that you don’t have to file Form 5329. But you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception, such as the exceptions for qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions, or a qualified reservist distribution.

Related Links

  • See IRS Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for more information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.