Form 5329: Additional Taxes on Retirement Plans and Other Tax-Favored Accounts

Code 01 – Separation From Service After Age 55

Qualified retirement plan distributions received after separation from service during or after the year you turned age 55 (age 50 for qualified public safety employees). This exception does not apply to IRAs.

Code 02 – Series of Equal Payments

Distributions made as part of a series of substantially equal periodic payments based on life expectancy.

Code 03 – Total and Permanent Disability

Distributions received because of a total and permanent disability.

Code 04 – Death

Distributions received due to the death of the account owner (does not apply to modified endowment contracts).

Code 05 – Medical Expenses

Distributions used to pay unreimbursed medical expenses exceeding 7.5% of adjusted gross income (AGI).

Code 06 – Alternate Payee Under a Qualified Domestic Relations Order (QDRO)

Qualified retirement plan distributions made to an alternate payee under a QDRO. This exception does not apply to IRAs.

Code 07 – Health Insurance During Unemployment

IRA distributions used to pay qualifying health insurance premiums while unemployed.

Code 08 – Higher Education Expenses

IRA distributions used for qualified higher education expenses.

Code 09 – First-Time Home Purchase

IRA distributions used to purchase, build, or rebuild a first home, up to a lifetime limit of $10,000.

Code 10 – IRS Levy

Qualified retirement plan distributions resulting from an IRS levy.

Code 11 – Qualified Reservist Distribution

Distributions made to military reservists called to active duty for at least 180 days.

Code 12 – Incorrectly Reported Early Distribution

Distributions incorrectly reported as early distributions using Code 1, J, or S in Box 7 of Form 1099-R.

Code 13 – Section 457 Plan Distributions

Distributions from a Section 457 plan that were not the result of a rollover from another qualified retirement plan.

Code 14 – Pre-March 1, 1986 Written Election Distribution

Certain distributions from employer plans meeting specific separation and written election requirements.

Code 15 – ESOP Dividends

Dividends paid with respect to stock described in Internal Revenue Code Section 404(k).

Code 16 – Certain Annuity Contract Distributions

Distributions from annuity contracts attributable to investments made before August 14, 1982.

Code 17 – Phased Retirement Annuity Payments

Qualified phased retirement annuity payments made to federal employees.

Code 18 – Permissible Withdrawals Under Section 414(w)

Certain permissible withdrawals from eligible retirement plans.

Code 19 – Qualified Birth or Adoption Distribution

Distributions related to a qualified birth or adoption. A statement providing the child's or adoptee's name, age, and TIN may be required.

Code 20 – Terminal Illness Distribution

Qualified distributions made due to terminal illness.

Code 21 – Corrective Distributions of Excess Contributions

Corrective distributions of earnings on excess contributions made before the tax return due date, including extensions.

Code 22 – Domestic Abuse Victim Distribution

For distributions made after December 31, 2023, certain distributions to victims of domestic abuse may qualify for an exception to the 10% additional tax.

Code 23 – Emergency Personal Expense Distribution

For distributions made after December 31, 2023, certain distributions used for emergency personal expenses may qualify for an exception.

Code 99 – Multiple Exceptions

Use this code when more than one exception applies to the distribution.

Other Exceptions

Additional exceptions may be available. Refer to the IRS Form 5329 Instructions and IRS Publication 575 for a complete list of qualifying exceptions.