Bill <an_ordinary_guy_158[at]hotmail.com> wrote:
- quote -

Bill

If all that happened is an early IRA distribution was taken
and a 10% tax is due, then Form 5329 is not needed and is a
waste of time to file. Just write NO on the line that
would have been used for the 5329 amount, and enter the
correct amount on that line.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"Jean S. Barto" <jsbarto1[at]cox.net> writes:

- quote -

You won't need a special form. You report the withdrawal on
the 1040 and the penalty in the "additional taxes" portion
of the 1040. You don't need a supporting form.

Phil Marti
Clarksburg, MD

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- quote -

You should receive a 1099-R. This will show the taxable
amount and show a code for the type of distribution. If you
are under 59 & 1/2 and there is no exception, in your case,
you'll pay tax (if you have sufficient other income) and a
10% penalty tax.

You will need to file a Form 1040 and show the amount of
withdrawal from your IRA. Since you took the withdrawal
before reaching age 59 1/2, unless you meet certain
exceptions listed in Publication 590, Individual Retirement
Arrangements (IRAs), you will need to pay an additional 10
percent tax on early distributions from qualified retirement
plans that is reported on line 57 of Form 1040. You may need
to complete Form 5329 (PDF), Additional Taxes on Qualified
Plans (including IRAs) and Other Tax-Favored Accounts, and
attach it to the tax return, if required. If you ever made
nondeductible contributions to your IRA, you must complete
Form 8606 (PDF), Nondeductible IRAs and Coverdell ESA's
attach it to your return. Form 8606 is used to determine if
the total amount of your distribution is tax free.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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Jean S. Barto <jsbarto1[at]cox.net> wrote:

- quote -

'Fear not, the form is coming.

It is Form 1099-R which will list the gross amount and
taxable amount of the distribution.

And in box 7 of that form will be the number "1" meaning it
was an early distribution with no known exception to the 10%
additional tax.

Enter the taxable amount of that distribution on Form 1040
Line 15b. If the gross amount is different enter it on Line
16a.

That 10% tax is listed on the back of form 1040 on the line
labeled additional tax for IRAs etc. Attach form 5329 if
required.

So you write NO on that line to show Form 5329 is not
required, and enter 10% of the taxable amount of the
distribution on that line.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Jean S. Barto wrote:

- quote -

Look for a form 1099R in the mail.

And don't forget it, like I did once. It was a rollover, but
I just plain out forgot about it. Happens to the best of
us.

Happy New ChEAr$,
Harlan Lunsford, EA n LA

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5329 is the form. It will not likely come in January. You
may download it from irs.gov

Missy Doyle

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jsbarto1[at]cox.net (Jean=A0S.=A0Barto) posted:

- quote -

The IRA distribution will properly be reported on line 15,
_but_ then you will have to file Form 5329, because it was
an early distribution -- and that will create an entry for
line 59 (additional tax due).

The form will not routinely come in your mailed IRS packet
(which you wouldn't get anyway, if you're e-filing). But
you can obtain it from www.irs.gov.

Bill

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I made a premature IRA withdrawl in January 2004--what kind
of form will I get so I can properly do my taxes? Hopefully
this form will come in January!

TIA--

Jean in VA

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