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IRS Form 5329: Reporting Taxes on Retirement Plans

Source: finance.yahoo.com - Jul 9, 2019

When filing taxes, it’s important to make sure you’re reporting all of your income correctly. That includes making note of early distributions from qualified retirement plans or other tax-favored accounts that may be subject to a 10% early withdrawal penalty. Failing to report those distributions could result in a major tax headache if the IRS determines you owe additional taxes or penalties later.

If you’ve taken a withdrawal from an individual retirement account (IRA) or another account with tax-advantaged status, you may need to file IRS Form 5329 with your regular income tax return. Here’s what you need to know about when you’re required to submit this form and how to fill it out to avoid any tax snafus. If you need some hands-on expert advice as you navigate your retirement withdrawals, consider enlisting the help of a trusted financial advisor.

Category: General Business