The table below explains exceptions to Form 5329, Additional Tax on Early Distributions, to assist you with entering this information in ProSeries.
Refer to the IRS Instructions for Form 5329 for more information.
|Exception no.||IRS description of exception|
|01||Qualified retirement plan distributions (does not apply to IRAs including SIMPLES) if you separated from service in or after the year you reach age 55 (age 50 for qualified public safety employees).|
|02||Distributions made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from an employer plan, payments must begin after separation from service).|
|03||Distributions due to total and permanent disability. You are considered disabled if you can furnish proof that you can’t do any substantial gainful activity because of your physical or mental condition. A medical determination that your condition can be expected to result in death or to be of long, continued, and indefinite duration must be made.|
|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 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.|
|12||Other (see Other next). Also, enter this code if more than one exception applies.|