[10508]
November 24, 1998
TO: PENSION MEMBERS No. 70-98
PENSION OPERATIONS ADVISORY COMMITTEE No. 64-98
TRANSFER AGENT ADVISORY COMMITTEE No. 78-98
RE: IRS PUBLISHES REVISED FORM 5329 AND INSTRUCTIONS
______________________________________________________________________________
The Internal Revenue Service has issued the 1998 Form 5329 and accompanying instructions.
This form is used to report certain additional income or excise taxes owed in connection with qualified
retirement plans, IRAs, annuities, Medical Savings Accounts (MSAs) and Education IRAs.
The form and instructions have been revised to include the taxes owed on early distributions
from Roth IRAs, excess contributions to Roth and Education IRAs and non-qualified distributions from
Education IRAs. Additionally, the instructions now address excess contributions to Medical Savings
Accounts (MSAs) and the new exceptions to the early distribution taxes imposed on IRAs, including the
exceptions for distributions used to pay for higher education expenses and first time home purchases.
Russell G. Galer
Senior Counsel
Attachment