{"id":20389,"date":"2020-06-14T12:00:00","date_gmt":"2020-06-14T17:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2023-01-12T17:15:22","modified_gmt":"2023-01-12T23:15:22","slug":"when-to-use-form-5329","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/irs\/forms\/when-to-use-form-5329\/","title":{"rendered":"When Should You Use Form 5329?"},"content":{"rendered":"<p><em><strong>Editor&#8217;s Note: <\/strong>How much of an early distribution can I take from my IRA without having to pay the 10% penalty? This post explains the answer.<\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-51639 alignright\" src=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/IRA-withdrawl-300x200.jpg\" alt=\"IRA withdrawl\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/IRA-withdrawl-300x200.jpg 300w, https:\/\/www.hrblock.com\/tax-center\/wp-content\/uploads\/2017\/06\/IRA-withdrawl.jpg 500w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Unless you qualify for a retirement-plan early-distribution penalty exception, you must pay the 10% additional tax for IRA amounts you withdrew before age 59 1\/2.<\/p>\n<p>You\u2019ll claim the exception on form 5329.<\/p>\n<h2>IRS Form 5329 Exceptions<\/h2>\n<p>Form 5329 exceptions and their codes for IRAs are:<\/p>\n<ul>\n<li>02 \u2014 Distributions made as part of a series of substantially equal periodic payments \u2014 made at least annually. These distributions must be for:\n<ul>\n<li>Your life or life expectancy<\/li>\n<li>The joint lives or joint life expectancies of you and your designated beneficiary<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>If the distributions are from an employer plan, payments must begin after separation from service.<\/p>\n<ul>\n<li>03 \u2014 Distributions due to total and permanent disability<\/li>\n<li>04 \u2014 Distributions due to death. This doesn\u2019t apply to modified endowment contracts.<\/li>\n<li>05 \u2014 Qualified retirement plan distributions that:\n<ul>\n<li>Were used to pay deductible unreimbursed medical expenses<\/li>\n<li>Exceed 7.5% of your adjusted gross income (AGI)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>You don\u2019t have to itemize your deductions to claim the exception.<\/p>\n<ul>\n<li>07 \u2014 IRA distributions made to individuals who were on unemployment compensation for 12 consecutive weeks to pay for health insurance premiums<\/li>\n<li>08 \u2014 IRA distributions made for qualified higher-education expenses<\/li>\n<li>09 \u2014 IRA distributions made to purchase your first home, up to $10,000<\/li>\n<li>10 \u2014 Distributions due to an\u00a0<a href=\"https:\/\/www.hrblock.com\/tax-center\/irs\/audits-and-tax-notices\/tax-dictionary-levy\/\">IRS levy<\/a>\u00a0on the qualified retirement plan or IRA account<\/li>\n<li>11 \u2014 Qualified distributions to reservists while serving on active duty for at least 180 days<\/li>\n<li>12 \u2014 Other \u2014 see Form 5329 instructions. Also, use this code if more than one exception applies.<\/li>\n<\/ul>\n<h2>Form 5329 Instructions<\/h2>\n<p>To view Form <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/i5329.pdf\">5329 instructions<\/a>, visit IRS.gov.<\/p>\n<h2>Want More Help With Form 5329?<\/h2>\n<p>If you\u2019re looking for more help with tax reporting using Form 5329, get the help of H&amp;R Block. <a href=\"https:\/\/www.hrblock.com\/tax-offices\/\">Drop off<\/a>, <a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">file online<\/a>, or work with a tax pro remotely\u2014it\u2019s up to you!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Editor&#8217;s Note: How much of an early distribution can I take from my IRA without having to pay the 10% penalty? This post explains the answer. Unless you qualify for a retirement-plan early-distribution penalty exception, you must pay the 10% additional tax for IRA amounts you withdrew before age 59 1\/2. You\u2019ll claim the exception [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":51639,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,55],"tags":[],"class_list":["post-20389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-irs","category-forms"],"acf":[],"yoast_head":"<title>When To Use Form 5329 | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"You can claim an exemption on IRA withdrawals with Form 5329, but how do you know if you&#039;re eligible? 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