Form 5329: Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

You file Form 5329 when one of your tax-favored accounts triggers an additional tax. That covers IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, HSAs, and ABLE accounts. You also file it to report an exception to the 10% additional tax on an early distribution from a qualified retirement plan, including an IRA. Trusts and estates that did not receive a minimum required distribution file it too.

One case lets you skip the form. If distribution code 1 is correctly shown in box 7 of all your Forms 1099-R and you owe the additional tax on the full amount shown on each one, you can report the 10% tax straight on Schedule 2 (Form 1040), line 8. If you rolled over part or all of a distribution, the part rolled over is not subject to the 10% tax.

• You took a distribution subject to the tax on early distributions
• You meet an exception but box 7 of your Form 1099-R does not show it
• You took taxable distributions from a Coverdell ESA, QTP, or ABLE account
• Your 2025 contributions went over your limit for one of these accounts
• You did not receive your minimum required distribution

File Form 5329 with your 2025 Form 1040, 1040-SR, 1040-NR, or 1041 by the due date of that return, including extensions. It carries attachment sequence number 29. If you do not have to file a 2025 income tax return, complete and file Form 5329 by itself at the time and place you would be required to file Form 1040, 1040-SR, or 1040-NR. A form filed by itself cannot be filed electronically. Fill in your address on page 1, then sign and date page 3.

Filing for an earlier year means using that year's version of the form. If you have no other changes and never filed a federal income tax return for that year, send the prior year form by itself. If you have other changes, file it with Form 1040-X. To amend a 2025 Form 5329, check the box at the top of page 1. Do not use the 2025 form to amend any other year.

The form has nine parts and you complete only the ones that apply to you. Part I handles early distributions. Part II covers Coverdell ESA, QTP, and ABLE account distributions you included in income. Parts III through VIII each handle excess contributions to one account type, in this order: traditional IRAs, Roth IRAs, Coverdell ESAs, Archer MSAs, HSAs, and ABLE accounts. Part IX covers a missed required distribution. Each part ends with a tax amount, and those amounts go on Schedule 2 (Form 1040), line 8.

If you are married filing jointly and both of you have to file, complete a separate form for each of you and include the combined tax on Schedule 2 (Form 1040), line 8. Several parts start with a figure from your 2024 Form 5329, so pull last year's copy first. The excess contribution parts also pull numbers from other forms: Form 8606 for IRAs, Form 8853 for Archer MSAs, and Form 8889 for HSAs.

Any distribution from an IRA, another qualified retirement plan, or a modified endowment contract before you reach age 59½ is generally an early distribution, and the part included in income gets the 10% additional tax. The instructions list 23 numbered exceptions, and you enter the number that fits in the space on line 2. Enter 99 if more than one applies. Examples include total and permanent disability, death, an IRS levy, a first home up to $10,000, qualified higher education expenses, and a birth or adoption up to $5,000.

Some distributions sit outside the tax without an exception number. A traditional IRA converted to a Roth IRA, a rollover from a qualified retirement plan to a Roth IRA, an in-plan Roth rollover, a qualified HSA funding distribution from an IRA, and distributions of excess deferrals are all outside it. Qualified disaster recovery distributions are not subject to the 10% tax or the 25% tax, and you do not report them on Form 5329 at all. Form 8915-F has more on those.

Part IX applies when you did not receive the minimum required distribution from your qualified retirement plan, including an IRA or an eligible section 457 deferred compensation plan. The tax is 25% of the excess accumulation, which is the difference between what had to be distributed and what actually was. It drops to 10% if, during the correction window, you receive a distribution of the amount that caused the excess and submit a return reflecting the additional tax. The tax is due for the tax year that includes the last day the distribution had to be taken.

The correction window ends on the earliest of three dates: the date the deficiency notice for this tax is mailed, the date the tax is assessed, or the last day of the second taxable year that begins after the end of the taxable year in which the tax is imposed. The IRS can also waive part or all of the tax if the shortfall was due to reasonable error and you are taking reasonable steps to fix it. Complete lines 52a through 53b, enter "RC" and the amount you want waived next to line 54a or 54b, attach a statement of explanation, and pay any tax still shown on line 55.