Form 5329 is an Internal Revenue Service (IRS) attachment used to report additional taxes on withdrawals or contributions to certain tax-advantaged retirement accounts. These accounts include IRAs, traditional 401(k) plans, Health Savings Accounts (HSAs), and Coverdell Education Savings Accounts (ESAs).
Essentially, it’s a form you file if you did something with your retirement savings that triggered an IRS penalty. Common reasons for needing Form 5329 include taking an early distribution from your IRA or exceeding contribution limits to your IRA or HSA. The form helps you calculate any taxes or penalties owed and allows you to attach it to your tax return.