How to fill out form 5329
L1: How to fill out form 5329I did a 1035 exchange last year from one annuity company to another. I have previously started a SEPP withdrawal program thus avoiding the pre-59 1/2 10% penalty. I restarted (continued) it with the new annuity company. Unfortunately it’s “normal” for these insurance companies to INCORRECTLY code a past SEPP withdrawal as a (1) early withdrawal. That’s what they did. I am told that I need to include a form 5329 with my tax return this year. So I am looking at this form trying to figure out how to fill it out. Is it just the 3 lines below that I fill out (in addition to the usual personal information and signature)?
PART 1 – Additional tax on early distributions
1. Early distributions included in income. __$5,000__
2. Early distributions included on line 1 that are not subject to the additional tax. __$5,000__
3. Amount subject to additional tax. Subtract line 2 from line 1. ___0__
4. Additional tax. Enter 10%(.10) of line 3. Include this amount on Form 1040, line 58, or Form 1040NR, line 56 _____2014-03-01 19:26, By: Bickerstaff, IP: [188.8.131.52]
L2: How to fill out form 5329You left out the critical exception codewhich goes online 2. The SEPP exception code is “02”.2014-03-02 18:06, By: Alan S, IP: [184.108.40.206]