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Tax Form 5329 must be filed in conjunction with Form 1040 or Form 1040NR. All tax forms must be filed by the due date, typically on or about April 15, including extensions. If you do not have to file an income tax return, Form 5329 can be completed and filed on its own.
Use Form 5329 to report additional taxes on IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, or HSAs.
You may need this form in three situations: Early distributions from a tax-favored account. Excess contributions to a tax-favored account. Failing to take required minimum distributions.
The following steps are from the 2022 Form 5329: Line 52: Minimum required distribution. On this line, indicate the total amount of the RMD. ... Line 53: Amount actually distributed. List the amount that was taken. ... Line 54: Subtract line 53 from line 52. ... Line 55: Additional tax.
For the most part, you must complete and submit this form to the IRS with your tax return if you: Received any early distributions from a qualifying tax-favored account, such as a 401(k) or IRA. Made contributions in excess of the annual limit to a qualifying tax-favored account1.