Get Federal Tax Form 5329

If you miss that deadline, the IRS imposes a penalty of 6% of the excess amount for each year that it remains in your account. You'll fill out Part 3, 4, 5, 6, 7, or 8 of Form 5329 to calculate the penalty.

Form 5329 is the tax form used to calculate possibly IRS penalties from the situations listed above and possibly request a penalty waiver. Form 5329 applies to each individual that might owe a penalty, so for married couples filing jointly, each spouse must complete their own form.

Requesting a waiver of the 50% tax is done by completing IRS Form 5329, and IRA owners must use the version of the form that was issued for the year the RMD was missed.

You must file Form 5329 if any of the following apply. 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).

Owners of a tax-deferred individual retirement account (IRA) or another type of retirement account must take required minimum distributions (RMDs) beginning at age 73 to avoid a penalty tax. If a withdrawal is missed, then the account owner must pay the penalty or submit a waiver request.

Excess contributions are contributions above the annual limit allowed by the IRS. These contributions are subject to a 6% tax penalty for each year they remain in your account.

Use Form 5329 to report additional taxes on IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, or HSAs.

What happens if a person does not take a RMD by the required deadline? (updated March 14, 2023) If an account owner fails to withdraw the full amount of the RMD by the due date, the amount not withdrawn is subject to a 50% excise tax.