Updated September 30, 2026. Quick answer: Form 5329 is the IRS form for additional taxes on IRAs and other tax-favored accounts: the 10% tax on early distributions (Part I), the tax on excess IRA contributions and the 25% tax on a missed required minimum distribution (Part IX). Exception numbers 01 to 23 on line 2 are how you show that the early-distribution tax does not apply.
What Form 5329 is for
The IRS instructions open with the purpose: “Use Form 5329 to report additional taxes on:” IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, HSAs, or ABLE accounts. Not everyone who owes the 10% tax files it. “However, if distribution code 1 is correctly shown in box 7 of all your Forms 1099-R and you owe the additional tax on the full amount shown on each Form 1099-R, you don’t have to file Form 5329.” Box 7 codes are decoded on the Code 1 page and the Code 2 page.
The nine parts
| Part | IRS heading |
|---|---|
| Part I | “Additional Tax on Early Distributions” |
| Part II | “Additional Tax on Certain Distributions From Education Accounts and ABLE Accounts” |
| Part III | “Additional Tax on Excess Contributions to Traditional IRAs” |
| Part IV | “Additional Tax on Excess Contributions to Roth IRAs” |
| Part V | “Additional Tax on Excess Contributions to Coverdell ESAs” |
| Part VI | “Additional Tax on Excess Contributions to Archer MSAs” |
| Part VII | “Additional Tax on Excess Contributions to Health Savings Accounts (HSAs)” |
| Part VIII | “Additional Tax on Excess Contributions to ABLE Accounts” |
| Part IX | “Additional Tax on Excess Accumulation in Qualified Retirement Plans (Including IRAs)” |
Part I: the 10% tax on early distributions
The base rule: “In general, if you receive an early distribution (including an involuntary cashout) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income is generally subject to the 10% additional tax.” On line 2 you enter the amount that is exempt and a number: “In the space provided, enter the applicable exception number” (01 to 23). “If more than one exception applies, enter 99.” One rate differs: “If any amount on line 3 was a distribution from a SIMPLE IRA received within 2 years from the date you first participated in the SIMPLE IRA plan, you must multiply that amount by 25% instead of 10%.” Other pages cover the broader list: early withdrawal penalty exceptions.
Exception numbers on line 2
The instructions list 23 numbered exceptions and 99 for more than one. Each description below is the first sentence the IRS prints for that number; several have conditions and limits that follow it in the instructions. Numbers 02, 12, 14, 15, 16, 18 and 21 are in the instructions and are not reproduced here.
| No. | IRS description (first sentence) |
|---|---|
| 01 | “Qualified retirement plan distributions (doesn’t apply to IRAs) you received after separation from service when the separation from service occurs in or after the year you reach age 55 (age 50 for qualified public safety employees and private sector firefighters) or 25 years of service under the plan, whichever is earlier.” |
| 03 | “Distributions due to total and permanent disability.” |
| 04 | “Distributions due to death (doesn’t apply to modified endowment contracts).” |
| 05 | “Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 7.5% of your adjusted gross income (AGI) for the year.” |
| 06 | “Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (doesn’t apply to IRAs).” |
| 07 | “IRA distributions made to certain unemployed individuals for health insurance premiums.” |
| 08 | “IRA distributions made for qualified higher education expenses.” |
| 09 | “IRA distributions made for the purchase of a first home, up to $10,000.” |
| 10 | “Qualified retirement plan distributions made due to an IRS levy.” |
| 11 | “Qualified distributions to reservists while serving on active duty for at least 180 days.” |
| 13 | “Distributions from a section 457 plan, which aren’t from a rollover from a qualified retirement plan.” |
| 17 | “Distributions that are phased retirement annuity payments made to federal employees.” |
| 19 | “Qualified birth or adoption distributions.” |
| 20 | “Distributions due to terminal illness.” |
| 22 | “Qualified distributions to victims of domestic abuse.” |
| 23 | “Distributions for eligible emergency expense distributions.” |
An exception that applies to a plan is often not available to an IRA. Numbers 01 and 06 say so in their own text: “(doesn’t apply to IRAs)”.
Parts III and IV: excess contributions
Contributing over the limit creates an excess. For a traditional IRA in the 2025 instructions: “If you aren’t married filing jointly, your contribution limit for traditional IRAs is the smaller of your taxable compensation or $7,000 ($8,000 if age 50 or older at the end of 2025).” The 2026 figures and the combined traditional-and-Roth limit are on the Roth IRA contribution limit page.
Part IX: the missed RMD
The IRS says: “The additional tax is 25% of the excess accumulation, which is the difference between the amount that was required to be distributed and the amount that was actually distributed.” “The additional tax is reduced to 10% of the excess accumulation if you meet certain requirements.” The amount itself comes from the formula on the required minimum distribution page.
Edition
These are the 2025 instructions for Form 5329, written for returns filed in 2026. Tax year 2026 figures can differ; the contribution limit, for example, is $7,500 for 2026.
Common mistakes
- Filing Form 5329 when code 1 is correct and the full amount is taxable. The IRS says you do not have to.
- Entering one exception number when two apply. The instruction is to enter 99.
- Treating a plan exception as an IRA exception. Numbers 01 and 06 do not apply to IRAs.
Related: Form 1099-R Code 7, Form 5498 Box 1, missed your own RMD, and every IRA, RMD and beneficiary guide.
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Answer againSources
- IRS Instructions for Form 5329 (2025): https://www.irs.gov/pub/irs-pdf/i5329.pdf
- IRS Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/pub/irs-pdf/p590b.pdf
Read from the IRS documents linked above on September 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.