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Instructions for Form 5329


Qualified retirement plan.(p1)
A qualified retirement plan includes:taxmap/instr2/i5329-004.htm#TXMP79e84be3
Modified endowment contracts are not qualified retirement plans.

Traditional IRAs.(p1)
For purposes of Form 5329, a traditional IRA is any IRA, including a simplified employee pension (SEP) IRA, other than a SIMPLE IRA or Roth IRA.
Early distribution.(p1)
Generally, any distribution from your IRA, other qualified retirement plan, or modified endowment contract before you reach age 591/2 is an early distribution.
Qualified retirement plan or in-plan Roth rollover.(p1)
Generally, a rollover is a tax-free distribution of assets from one qualified retirement plan that is reinvested in another plan or the same plan. Generally, you must complete the rollover within 60 days of receiving the distribution. Any taxable amount not rolled over must be included in income and may be subject to the 10% additional tax on early distributions.
You can roll over (convert) amounts from a qualified retirement plan to a Roth IRA. Any amount rolled over to a Roth IRA is subject to the same rules for converting a traditional IRA to a Roth IRA. You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them into a Roth IRA. Generally, the 10% additional tax on early distributions does not apply. For more information, see chapter 2 of Pub. 590-A.
The IRS may waive the 60-day requirement if failing to waive it would be against equity or good conscience, such as situations where a casualty, disaster, or other events beyond your reasonable control prevented you from meeting the 60-day requirement. Also, the 60-day period may be extended if you had a frozen deposit. See Time Limit for Making a Rollover Contribution under Can You Move Retirement Plan Assets? in Pub. 590-A for details. Also, see Revenue Procedure 2016-47 in Internal Revenue Bulletin 2016-37 available at for information on how to self-certify for a waiver.
In-plan Roth rollover.

If you are a participant in a 401(k), 403(b), or governmental 457(b) plan, your plan may permit you to roll over amounts from those plans to a designated Roth account within the same plan. The rollover of any untaxed amounts must be included in income. Generally, the 10% additional tax on early distributions does not apply. For more information, see In-plan Roth rollovers under Rollovers in Pub. 575.
Compensation includes wages, salaries, tips, bonuses, and other pay you receive for services you perform. It also includes sales commissions, commissions on insurance premiums, and pay based on a percentage of profits. It includes net earnings from self-employment, but only for a trade or business in which your personal services are a material income-producing factor.
For IRAs, treat nontaxable combat pay and any differential wage payments, and all taxable alimony received under a decree of divorce or separate maintenance as compensation.
Compensation does not include any amounts received as a pension or annuity and does not include any amount received as deferred compensation.
Taxable compensation is your compensation that is included in gross income reduced by any deductions on Form 1040 or Form 1040NR, lines 27 and 28, but not by any loss from self-employment.
ABLE rollover.(p2)
For an ABLE account, a rollover means a contribution to an ABLE account of a designated beneficiary (or of an eligible individual who is a member of the family of the designated beneficiary) of all or a portion of an amount withdrawn from the designated beneficiary's ABLE account. The contribution must be made within 60 days of the withdrawal date; and, if the rollover is to the designated beneficiary's ABLE account, there must have been no rollover to an ABLE account of that beneficiary within the prior 12 months.
Program-to-program transfer.

For an ABLE account, a program-to-program transfer includes the direct transfer of the entire balance of an ABLE account into a second ABLE account if both accounts have the same designated beneficiary and the first ABLE account is closed upon completion of the transfer. A program-to-program transfer also occurs when part or all of the balance in an ABLE account is transferred to the ABLE account of an eligible individual who is a member of the family of the former designated beneficiary, as long as no intervening distribution is made to the designated beneficiary.