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 Form 1040, line 58.

Amended returns.   If you are filing an amended 2013 Form 5329, check the box at the top of page 1 of the form. Do not use the 2013 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 does not apply to any of the following:

  • 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.

  • In-plan rollover to a designated Roth account.

  • 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 Any related IRA earnings withdrawn with excess IRA contributions are subject to the 10% additional tax on early distributions if you were under age 59½ at the time of the distribution.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.

  • 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.

See the instructions for line 2, later, for other distributions that are not subject to the 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  • A qualified retirement plan, including earnings on withdrawn excess contributions to your IRAs included in income in 2013, or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 Prohibited Transactions under What Acts Result in Penalties or Additional Taxes? in Pub. 590 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 2013 Form 1099-R. You may also need to include a recapture amount on line 1 if you have ever made an in-plan Roth rollover (discussed next).

  
If you never made an in-plan Roth rollover, you only need to include on line 1 of this form the amount from box 2a of your 2013 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 2013, the recapture amount to include on line 1 is a portion of amounts you rolled over.

The recapture amount that you must include on line 1 will not exceed the amount of your early distribution; and, for purposes of determining this recapture amount, a rollover amount (or portion of a rollover) will only be allocated to an early distribution once.

For more information about the recapture amount for distributions from a designated Roth account, including how to calculate 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 25 of your 2013 Form 8606. You will also need to include on line 1 the following amounts.
  • A qualified first-time homebuyer distribution from line 20 of your 2013 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 2009 through 2013. See Recapture amount subject to the additional tax on early distributions, next.

  
If you did not convert or roll over an amount to your Roth IRAs in 2009 through 2013, or have a first-time homebuyer distribution, you only need to include the amount from line 25 of your 2013 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 2009 through 2013 and you received an early distribution for 2013, the recapture amount to include on line 1 is the amount, if any, of the early distribution allocated to the taxable portion of your 2009 through 2013 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. The recapture amount is the amount of the conversion or rollover that was subject to tax in the year of the conversion or the rollover. An early distribution allocated to a conversion or rollover is first allocated to the taxable portion.

The recapture amount that you must include on line 1 will not exceed the amount of your early distribution; and, for purposes of determining this recapture amount, a contribution, conversion, or rollover amount (or portion thereof) will only be allocated to an early distribution once.

For more information about the recapture amount for distributions from a Roth IRA, including how to calculate it, see Ordering Rules for Distributions under Are Distributions Taxable? in chapter 2 of Pub. 590. Also, see the Example below that 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 2009 and converted $10,000 in 2010. Your 2009 Form 8606 had $5,000 on line 17 and $15,000 on line 18 and your 2010 Form 8606 had $3,000 on line 17 and $7,000 on line 18. You made Roth IRA contributions of $2,000 for 2009 and 2010. You did not make any Roth IRA conversions or contributions for 2011 through 2013, or take any Roth IRA distributions before 2013.

On July 9, 2013, at age 53, you took a $33,000 distribution from your Roth IRA. Your 2013 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 25 ($29,000 minus your basis in conversions of $30,000).

First, $4,000 of the $33,000 is allocated to your 2013 Form 8606, line 22; then $15,000 to your 2009 Form 8606, line 18; $5,000 to your 2009 Form 8606, line 17; and $7,000 to your 2010 Form 8606, line 18. The remaining $2,000 is allocated to the $3,000 on your 2010 Form 8606, line 17. On line 1, enter $22,000 ($15,000 allocated to your 2009 Form 8606, line 18, plus the $7,000 that was allocated to your 2010 Form 8606, line 18).

If you take a Roth IRA distribution in 2014, the first $1,000 will be allocated to the $1,000 remaining from your 2010 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 chapters 1 and 2 of Pub. 590.

Line 2

The additional tax on early distributions does not apply to the distributions described next. 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) you receive after separation 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. You are considered disabled if you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duration.
04 Distributions due to death (does not apply to modified endowment contracts).
05 Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 10% (or 7.5% if you or your spouse are age 65 or older) 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 59½ 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 Tax on Early Distributions under Special Additional Taxes in Pub. 575.

  • Phased retirement annuity payments made to federal employees. See Pub. 721 for more information on the phased retirement program.

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

Line 6

This tax does not apply to distributions that are includible in income if:

  • Made 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 American opportunity and lifetime learning credits.

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 2013 than is allowable or you had an amount on line 17 of your 2012 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2013 excess contributions (see the instructions for line 15, later).

Line 9

Enter the amount from line 16 of your 2012 Form 5329 only if the amount on line 17 of your 2012 Form 5329 is more than zero.

Line 10

If you contributed less to your traditional IRAs for 2013 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 (defined earlier) or $5,500 ($6,500 if age 50 or older at the end of 2013). If you are married filing jointly, your contribution limit is generally $5,500 ($6,500 if age 50 or older at the end of 2013) and your spouse's contribution limit is $5,500 ($6,500 if age 50 or older at the end of 2013). 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 2013; $13,000 if both spouses are 50 or older at the end of 2013), see How Much Can Be Contributed? in Pub. 590 for special rules.

Also include on line 11a or 11b (line 11 for Form 1040NR) of the IRA Deduction Worksheet in the instructions for Form 1040 or Form 1040NR, 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 2011 that you had returned to you in 2013 and any 2012 excess contributions that you had returned to you in 2013 after the due date (including extensions) of your 2012 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 the amounts shown in the following table.

    Year(s) Contribution 
    limit
    Contribution limit if age 50 or older at the end of the year
    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 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:

    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 2013 (unless withdrawn—see below) over your 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 70½ or a later year is an excess contribution because your contribution limit is zero. Do not include rollovers in figuring your excess contributions.

You can withdraw some or all of your excess contributions for 2013 and they will not be treated as having been contributed if:

  • You make the withdrawal by the due date, including extensions, of your 2013 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 59½ 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 2013 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 2013 than is allowable or you had an amount on line 25 of your 2012 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2013 excess contributions (see the instructions for line 23, later). 
 

Line 18

Enter the amount from line 24 of your 2012 Form 5329 only if the amount on line 25 of your 2012 Form 5329 is more than zero.

Line 19

If you contributed less to your Roth IRAs for 2013 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:

  • $178,000 if married filing jointly or qualifying widow(er),

  • $0 if married filing separately and you lived with your spouse at any time in 2013, or

  • $112,000 for any other taxpayer.

See Can You Contribute to a Roth IRA? in 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 below).

Example.

You contributed $1,000 to a Roth IRA in 2011, your only contribution to Roth IRAs. In 2013, you discovered you were not eligible to contribute to a Roth IRA in 2011. On September 9, 2013, you withdrew $800, the entire balance in the Roth IRA. You must file Form 5329 for 2011 and 2012 to pay the additional taxes for those years. When you complete Form 5329 for 2013, 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 2013 (unless withdrawn—see below) over your contribution limit for Roth IRAs (see the instructions for line 19, earlier).

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 2013 and they will not be treated as having been contributed if:

  • You make the withdrawal by the due date, including extensions, of your 2013 tax return, 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 had not reached age 59½ 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 2013 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 2013 were more than is allowable or you had an amount on line 33 of your 2012 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2013 excess contributions (see the instructions for line 31, later).

Line 26

Enter the amount from line 32 of your 2012 Form 5329 only if the amount on line 33 of your 2012 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 2013 (see the instructions for line 31 below) over the amount actually contributed for 2013.

Line 28

Enter your total distributions from Coverdell ESAs in 2013. Do not include rollovers or returned excess contributions.

Line 31

Enter the excess of the contributions to your Coverdell ESAs for 2013 (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 Contributions under chapter 7 in Pub. 970 for details.

You can withdraw some or all of the excess contributions for 2013 and they will not be treated as having been contributed if:

  • You make the withdrawal before June 1, 2014, 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, 2014. If you do, file an amended return. Report any related earnings for 2013 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 2013 than is allowable or you had an amount on line 41 of your 2012 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2013 excess contributions (see the instructions for line 39, later).

Line 34

Enter the amount from line 40 of your 2012 Form 5329 only if the amount on line 41 of your 2012 Form 5329 is more than zero.

Line 35

If your contribution limit for your Archer MSAs (the smaller of line 3 or line 4 of Form 8853, Archer MSAs and Long-Term Care Insurance Contracts) is greater than the contributions to your Archer MSAs for 2013, enter the difference on line 35. Also include on your 2013 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 39

Enter the excess of your contributions to your Archer MSA for 2013 (from Form 8853, line 2) 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.

However, you can withdraw some or all of the excess contributions for 2013 and they will not be treated as having been contributed if:

  • You make the withdrawal by the due date, including extensions, of your 2013 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 2013 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 2013 than is allowable or you had an amount on line 49 of your 2012 Form 5329, you may owe this tax. But you may be able to avoid the tax on any 2013 excess contributions (see the instructions for line 47, later).

Line 43

If your contribution limit for your HSAs (line 12 of Form 8889, Health Savings Accounts (HSAs)) is greater than the contributions you made to your HSAs (or those made on your behalf) for 2013 (Form 8889, line 2), enter the difference on line 43. Also include on your 2013 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 2013 (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 2013 and they will not be treated as having been contributed if:

  • You make the withdrawal by the due date, including extensions, of your 2013 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 2013 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 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—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 is required to be taken.

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 70½. 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.

   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 When Must You Withdraw Assets? in Pub. 590.

A qualified charitable distribution will count towards your required minimum distribution. However, the following transactions do not count towards your minimum required distributions for 2013:

  • You treated a QCD made in January 2013 as if it was made in 2012.

  • You received a distribution in December 2012 that you contributed, all or part of it, as cash (or cash equivalent) to a charity before February 1, 2013, and that contribution met the requirements of a QCD.

See Qualified charitable distributions under Are Distributions Taxable? in chapter 2 of Pub. 590 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 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 70½ 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 70½, 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 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.

  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.


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