Form 5329 is where you report extra taxes tied to retirement accounts, HSAs and other tax-favored accounts. Many people can skip it, but you may need it to claim an exception or report a missed required distribution.
This guide explains when you must file, what each part covers, how to file it by itself, the 25% missed-RMD tax and the waiver for reasonable cause, using the IRS Instructions for Form 5329 (2025).
The IRS says to use Form 5329 to report additional taxes on IRAs, other qualified retirement plans, modified endowment contracts, Coverdell ESAs, qualified tuition programs (QTPs), Archer MSAs, HSAs and ABLE accounts. The parts of the form cover early distributions (Part I), education and ABLE account distributions (Part II), and excess contributions to traditional IRAs (Part III), Roth IRAs (Part IV), Coverdell ESAs (Part V), Archer MSAs (Part VI), HSAs (Part VII) and ABLE accounts (Part VIII), plus excess accumulation, meaning missed required minimum distributions (Part IX). This page follows the instructions for the 2025 form, the latest final edition we read.
| Situation | File Form 5329? |
|---|---|
| Form 1099-R shows code 1 correctly and you owe the 10% tax on the full amount | No: enter the tax on Schedule 2 (Form 1040), line 8 |
| You meet an exception but box 7 of Form 1099-R does not show it, or it does not cover the whole distribution | Yes |
| You took a Roth IRA distribution and line 25c of Form 8606 is above zero, or it includes a recapture amount or is a first-time homebuyer distribution | Yes |
| You received taxable distributions from a Coverdell ESA, QTP or ABLE account | Yes |
| Your contributions exceeded the limit for an IRA, Coverdell ESA, Archer MSA, HSA or ABLE account | Yes |
| You did not take your full required minimum distribution | Yes |
The IRS adds that, in general, you must file Form 5329 to report an exception to the 10% additional tax on an early distribution, and that a part of a distribution you rolled over is not subject to the 10% tax. See our early withdrawal penalty guide for the exception list and our Form 1099-R guide for the box 7 codes.
File Form 5329 with your Form 1040, 1040-SR, 1040-NR or 1041 by the due date including extensions. If you do not have to file an income tax return, file it by itself at the time and place you would file a return; a form filed by itself cannot be filed electronically, and you must include your address, signature and date. For a prior year you must use that year's version of the form, filed by itself or with Form 1040-X if you have other changes.
Part IX applies if you did not receive the minimum required distribution from a qualified retirement plan, including an IRA or an eligible section 457 plan. The additional tax is 25% of the excess accumulation, the difference between the amount required and the amount actually distributed, and it is reduced to 10% if you meet certain requirements. The IRS can waive part or all of it if the shortfall was due to reasonable error and you are taking reasonable steps to remedy it: attach a statement of explanation, then enter "RC" and the amount of the shortfall you want waived, in parentheses, next to line 54a and/or 54b. See our RMD guide.
| Missed RMD | Amount |
|---|---|
| Required distribution | $10,000 |
| Actually distributed | $6,000 |
| Excess accumulation (shortfall) | $4,000 |
| Additional tax at 25% | $1,000 |
| Additional tax if the 10% reduced rate applies | $400 |
This is our illustration of the Part IX rates; the 10% rate applies only if, within the correction window, you take the missed amount out of the plan and file a return reflecting the tax. The window ends on the earliest of the deficiency-notice mailing date, the assessment date, or the last day of the second taxable year that begins after the year the tax is imposed. SIMPLE IRA distributions in the first two years of participation are multiplied by 25% instead of 10% for the early distribution tax; see our SIMPLE IRA guide.
IRS: Instructions for Form 5329 (2025), IRS Topic 558: Additional tax on early distributions from retirement plans other than IRAs.