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Help Center  >  Pros  >  Preparing Returns

Professional Editions: Form 5329 – Entering in Program

IRS Form 5329 is the federal tax form used to report additional taxes on:

  • IRAs
  • Other qualified retirement plans
  • Modified endowment contracts
  • Coverdell ESAs
  • QTPs
  • Archer MSAs
  • HSAs
  • ABLE accounts
To enter, review, or delete information for Form 5329 in TaxAct:

TaxAct Online

  • From within the TaxAct return, click Federal.
    • On smaller devices, click the menu at the top left corner of your screen, then make your selection.
  • Click Taxes & Miscellaneous.
  • Click Additional Tax Payments to expand the dropdown list of topics.
  • Click Additional Taxes on Qualified Retirement Plans (Form 5329) from the list of topics.

Desktop

  • From within the TaxAct return, click Topics Assistant.
  • From the topics screen, click Federal Q&A to expand the dropdown list.
  • Click Retirement Plan Income and click Additional Taxes on Qualified Retirement Plans (Form 5329) from the dropdown list.

Form 5329 Not Required

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 a return, even if an amount appears on Form 1040 U.S. Individual Income Tax Return, Line 6 for Additional tax on IRAs, other qualified retirement plans, etc.

  1. 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 a IRA, Coverdell education savings account (ESA), Archer MSA, health savings account (HSA), or ABLE account.
  3. Received a taxable distribution from a Coverdell ESA, qualified tuition program, or ABLE account.
  4. Did not meet the minimum required distribution from the IRA or other qualified retirement plan by April 1 of the year following the year the taxpayer reached age 72 (see IRS Publication 590-B for more information about required minimum distributions).

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 (reported on Form 1040, 1040-SR, or 1040-NR) by 10% (0.10) and enter the result on line 8.

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.

See Instructions for Form 1040 and 1040-SR for more information