Tim has worked for one employer his entire career. While he was working, he participated in the employers defined contribution plan [traditional 401(k)]. At the end of 2021, Tim retires. The balance in his defined contribution plan is $2,000,000 at the end of 2020. (Use Exhibit 13-3.) (Leave no answer blank. Enter zero if applicable.)
a. What is Tims required minimum distribution for 2021 that must be distributed in 2022 if he is 68 years old at the end of 2021? a: minimum required distribution =. $0
- b-1. What is Tims required minimum required for 2021 if he turns 72 during 2021?
- b-2. When must he receive this distribution?
A: b1:$78,200. b2: april 1, 2022
c. What is Tims required minimum distribution for 2021 that must be distributed in 2022 if he turns 75 years old in 2021?
a: $87,400
d. Assuming that Tim is 76 years old at the end of 2021 and his marginal tax rate is 32 percent, what amount of his distribution will he have remaining after taxes if he receives only a distribution of $50,000 for 2021?
A: $13,600
e. Complete Form 5329, page 2, to report the minimum distribution penalty in part (d).
can someone please help me by filling out the 5329 form!? I'm confused
40 Form 5329 (2021) Page 2 Part V Additional Tax on Excess Contributions to Coverdell ESAs. Complete this part if the contributions to your Coverdell ESAs for 2021 were more than is allowable or you had an amount on line 33 of your 2020 Form 5329. 26 Enter the excess contributions from line 32 of your 2020 Form 5329. See instructions. If zero, go to line 31 26 27 If the contributions to your Coverdell ESAs for 2021 were less than the maximum allowable contribution, see instructions. Otherwise, enter-O- 27 28 2021 distributions from your Coverdell ESAS (see instructions) 28 29 Add lines 27 and 28 29 30 Prior year excess contributions. Subtract line 29 from line 26. If zero or less, enter-O-. 30 31 Excess contributions for 2021 (see instructions) 31 32 Total excess contributions. Add lines 30 and 31 32 33 Additional tax. Enter 6% (0.06) of the smaller of line 32 or the value of your Coverdell ESAs on December 31, 2021 (including 2021 contributions made in 2022). Include this amount on Schedule 2 (Form 1040), line 8. 33 Part VI Additional Tax on Excess Contributions to Archer MSAs. Complete this part if you or your employer contributed more to your Archer MSAs for 2021 than is allowable or you had an amount on line 41 of your 2020 Form 5329. 34 Enter the excess contributions from line 40 of your 2020 Form 5329. See instructions. If zero, go to line 39 34 35 If the contributions to your Archer MSAs for 2021 are less than the maximum allowable contribution, see instructions. Otherwise, enter-O- 35 36 2021 distributions from your Archer MSAs from Form 8853, line 8 36 37 Add lines 35 and 36 ... 37 ene ... 38 Prior year excess contributions. Subtract line 37 from line 34. If zero or less, enter-O- 38 39 Excess contributions for 2021 (see instructions) 39 Total excess contributions. Add lines 38 and 39 40 41 Additional tax. Enter 6% (0.06) of the smaller of line 40 or the value of your Archer MSAs on December 31, 2021 (including 2021 contributions made in 2022). Include this amount on Schedule 2 (Form 1040), line 8 41 Part VII Additional Tax on Excess Contributions to Health Savings Accounts (HSAs). Complete this part if you, someone on your behalf, or your employer contributed more to your HSAs for 2021 than is allowable or you had an amount on line 49 of your 2020 Form 5329. 42 Enter the excess contributions from line 48 of your 2020 Form 5329. If zero, go to line 47 42 43 If the contributions to your HSAs for 2021 are less than the maximum allowable contribution, see instructions. Otherwise, enter-O- 43 44 2021 distributions from your HSAs from Form 8889, line 16 44 45 Add lines 43 and 44 45 46 Prior year excess contributions. Subtract line 45 from line 42. If zero or less, enter-O-. 46 47 Excess contributions for 2021 (see instructions) 47 48 Total excess contributions. Add lines 46 and 47 49 Additional tax. Enter 6% (0.06) of the smaller of line 48 or the value of your HSAs on December 31, 2021 (including 2021 contributions made in 2022). Include this amount on Schedule 2 (Form 1040), line 8 49 Part VIII Additional Tax on Excess Contributions to an ABLE Account. Complete this part if contributions to your ABLE account for 2021 were more than is allowable. 50 Excess contributions for 2021 (see instructions) 50 51 Additional tax. Enter 6% (0.06) of the smaller of line 50 or the value of your ABLE account on December 31, 2021. Include this amount on Schedule 2 (Form 1040), line 8 51 Part IX Additional Tax on Excess Accumulation in Qualified Retirement Plans (Including IRAs). Complete this part if you did not receive the minimum required distribution from your qualified retirement plan. 52 Minimum required distribution for 2021 (see instructions) 52 78200 53 Amount actually distributed to you in 2021 ... 53 54 Subtract line 53 from line 52. If zero or less, enter-O- 54 55 Additional tax. Enter 50% (0.50) of line 54. Include this amount on Schedule 2 (Form 1040), line 8 55 Sign Here Only if You Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Are Filing This Form by Itself and Not With Your Tax Return Your signature Date Preparer's signature Print/Type preparer's name Date Paid PTIN Check if self-employed Preparer Firm's EIN Firm's address Phone no. Form 5329 (2021) 48 Use Only Firm's name OMB No. 1545-0074 Form 5329 2021 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Internal Revenue Service (99) Go to www.irs.gov/Form5329 for instructions and the latest information. Name of individual subject to additional tax. If married filing jointly, see instructions. Tim Home address (number and street), or P.O. box if mail is not delivered to your home Attachment Sequence No. 29 Your social security number Apt.no Fill in Your Address Only if You Are Filing This Form by Itself and Not With Your Tax Return City, town or post office, state, and ZIP code. If you have a foreign address, also complete the spaces below. See instructions. If this is an amended retum, check here Foreign postal code Foreign country name Foreign province/state/county 2 3 4 2 3 4 - 5 6 ser 8 8 If you only owe the additional 10% tax on the full amount of the early distributions, you may be able to report this tax directly on Schedule 2 (Form 1040), line 8, without filing Form 5329. See instructions. Part 1 Additional Tax on Early Distributions. Complete this part if you took a taxable distribution (other than a qualified disaster distribution) before you reached age 5942 from a qualified retirement plan (including an IRA) or modified endowment contract (unless you are reporting this tax directly on Schedule 2 (Form 1040) -see above). You may also have to complete this part to indicate that you qualify for an exception to the additional tax on early distributions or for certain Roth IRA distributions. See instructions. 1 Early distributions includible in income (see instructions). For Roth IRA distributions, see instructions. 1 Early distributions included on line 1 that are not subject to the additional tax (see instructions). Enter the appropriate exception number from the instructions: Amount subject to additional tax. Subtract line 2 from line 1 Fore.. 4 Additional tax. Enter 10% (0.10) of line 3. Include this amount on Schedule 2 (Form 1040), line 8 4 Caution: any part of the amount on line 3 was a distribution from a SIMPLE IRA, you may have to include 25% of that amount on line 4 instead of 10%. See instructions. Part II Additional Tax on Certain Distributions From Education Accounts and ABLE Accounts. Complete this part f you included an amount in income, on Schedule 1 (Form 1040), line 8z, from a Coverdell education savings account (ESA) or a qualified tuition program (QTP), or on Schedule 1 (Form 1040), line 8p, from an ABLE account. Distributions included in income from a Coverdell ESA, a QTP, or an ABLE account 5 6 Distributions included on line 5 that are not subject to the additional tax (see instructions) mu 7 Amount subject to additional tax. Subtract line 6 from line 5 7 Additional tax. Enter 10% (0.10) of line 7. Include this amount on Schedule 2 (Form 1040), line 8 Part II Additional Tax on Excess Contributions to Traditional IRAs. Complete this part if you contributed more to your traditional IRAs for 2021 than is allowable or you had an amount on line 17 of your 2020 Form 5329. 9 Enter your excess contributions from line 16 of your 2020 Form 5329. See instructions. If zero, go to line 15 9 2000000 10 If your traditional IRA contributions for 2021 are less than your maximum allowable contribution, see instructions. Otherwise, enter-O- 10 2021 traditional IRA distributions included in income (see instructions) 11 5000 2021 distributions of prior year excess contributions (see instructions) 12 prior year excess Add lines 10, 11, and 12 . 2000000 14 Prior year excess contributions. Subtract line 13 from line 9. If zero or less, enter- 15 Excess contributions for 2021 (see instructions) 15 16 Total excess contributions. Add lines 14 and 15 16 17 Additional tax. Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31, 2021 (including 2021 contributions made in 2022). Include this amount on Schedule 2 (Form 1040), line 8 17 Part IV Additional Tax on Excess Contributions to Roth IRAs. Complete this part if you contributed more to your Roth IRAs for 2021 than is allowable or you had an amount on line 25 of your 2020 Form 5329. 18 Enter your excess contributions from line 24 of your 2020 Form 5329. See instructions. If zero, go to line 23 18 19 If your Roth IRA contributions for 2021 are less than your maximum allowable contribution, see instructions. Otherwise, enter-O- 19 20 2021 distributions from your Roth IRAs (see instructions) 20 Add lines 19 and 20 22 Prior year excess contributions. Subtract line 21 from line 18. If zero or less, enter-O- 22 Excess contributions for 2021 (see instructions) 24 Total excess contributions. Add lines 22 and 23 25 Additional tax. Enter 6% (0.06) of the smaller of line 24 or the value of your Roth IRAs on December 31, 2021 (including 2021 contributions made in 2022). Include this amount on Schedule 2 (Form 1040), line 8 25 For Privacy Act and Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 133290 Form 5329 (2021) 9 0 11 0 12 13 13 14 21 21 23 23 24 EXHIBIT 13-3 Abbreviated Uniform Lifetime Table Age of Participant Distribution Period Applicable Percentage* 70 27.4 3.65% 71 26.5 3.77 72 25.6 3.91 73 24.7 4.05 74 23.8 4.20 75 22.9 4.37 76 22.0 4.54 77 21.2 4.72 *The applicable percentage is calculated by dividing 1 by the relevant distribution period. Source: See Reg. $1.401(a)(9)-9
