Who Must File Form 5329

Form 5329, entitled “Additional Taxes on Qualified Retirement Plans (including IRAs) and Other Tax-Favored Accounts,” is filed when an individual with a retirement plan or education savings account (ESA) needs to indicate whether they owe the Internal Revenue Service (IRS

Who needs to fill out Form 5329?

The IRS requires individuals to complete Form 5329 if they receive a retirement account distribution before the age of 59½. The early distribution penalty is 10 percent of the distributed amount, but some exceptions apply.

Can Form 5329 be filed separately?

In most cases, this form must be filed as part of an amended tax return for the year the distribution should have been made. However, if a tax return wasn’t previously filed for that year and there are no other changes to be made, the Form 5329 can be submitted on its own.