Do I need to calculate additional tax on my lump sum distribution? (Delaware Form 329)

You may be required to make estimated payments if you receive a lump sum distribution or a large bonus at the end of the year.

Do I have to complete Form 329 for my lump sum distribution?

If you are an employee, the tax only applies if the distribution was:

• Due to the participant's separation from employment,
• Due to the participant's death, or
• After the participant had attained age 59 1/2.

If you are self-employed, the tax only applies if the distribution was:

• After the participant had attained age 59 1/2,
• Due to the participant's death, or
• The participant was previously disabled.

The tax does not apply when the distributions is:

• Rolled over.
• An early distribution including an early distribution received for medical, education or housing exclusions; or
• Subject to the early withdrawal penalty on Line 18 of your Federal Form Schedule 1.

Can I e-file my return with form 329?

You are not able to e-file a return containing this entry. However, you can print, sign, and mail the return and include a completed Form 329. Form 329 will be generated when you enter the information into the program.

Program Entry

1. State Section
2. Edit Delaware return
3. Tax