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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 59
1
/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. The IRS may extend the 60-day rollover period for
individuals affected by a disaster.
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. 2020-46 in Internal Revenue Bulletin
2020-45, available at
https://www.irs.gov/irb/2020-45_IRB#REV-
PROC-2020-46, 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
reasons listed in Rev. Proc. 2020-46. See Rev. Proc. 2020-46 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 were effective as of January 1, 2018.
•
A qualified plan loan offset is a type of plan loan offset that
meets certain requirements. In order to be a qualified plan
loan offset, the loan, at the time of the offset, must be a loan
in good standing and the offset must be solely by reason of
(1) the termination of the qualified employer plan, or (2) the
failure to meet the repayment terms is because the
employee has a severance from employment. If you meet
the requirements of a qualified plan loan offset, 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
qualified 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 IRA (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.
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. The IRS may
extend the 60-day rollover period for individuals affected by a
disaster. 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 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.
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 2 (Form 1040), line 8.
Amended returns. If you are filing an amended 2023 Form
5329, check the box at the top of page 1 of the form. Don’t use
the 2023 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 is generally 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.
•
A qualified disaster recovery distribution (certain
distributions relating to disasters occurring on or after
January 26, 2021), or qualified disaster distributions. See
Form 8915-F for more details.
•
A qualified distribution from a retirement plan for the birth or
adoption of a child of up to $5,000 if made during the 1-year
period beginning on the date your child was born or
adopted. Attach a statement that provides the name, age,
and TIN of the child or eligible adoptee. If the child died
before you obtained a TIN, then write that the child died on
the statement and include a copy of the child’s birth
certificate, death certificate, or hospital records.
See Notice 2020-68, available at IRS.gov/pub/irs-drop/
n-20-68.pdf, for more information.
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Instructions for Form 5329 (2023)