If you received a qualifying lump-sum distribution from a retirement plan, Delaware may allow you to use Form 329, Special Tax Computation for Lump Sum Distribution from a Qualified Retirement Plan, to calculate the tax on that distribution.
Do I Need to Complete Form 329?
You may need to complete Form 329 if you received a qualifying lump-sum distribution from a qualified retirement plan and meet the eligibility requirements below.
If You Are an Employee
Form 329 applies only if the distribution was:
- Made due to the participant's separation from employment,
- Made due to the participant's death, or
- Made after the participant reached age 59½.
If You Are Self-Employed
Form 329 applies only if the distribution was:
- Made after the participant reached age 59½,
- Made due to the participant's death, or
- Made after the participant became disabled.
When Does Form 329 Not Apply?
Do not use Form 329 if the distribution was:
- Rolled over to another qualified retirement plan or IRA,
- An early distribution, including certain distributions for medical, education, or housing purposes, or
- Subject to the federal early withdrawal penalty.
Can I E-file My Return with Form 329?
No. Returns containing Form 329 cannot be electronically filed through the program.
After entering the information, the program will generate Form 329. You must print, sign, and mail the Delaware return with the completed form attached.
Program Entry
To enter Form 329 information in the program:
- Go to State.
- Select Edit Delaware Return.
- Select Tax.
- Select Lump Sum Distribution (Form 329).
Important
Form 329 applies only to certain qualifying lump-sum distributions from a qualified retirement plan. Most retirement distributions do not require Form 329. Review your Form 1099-R and distribution information carefully before making an entry.