Navigating tax implications for lump sum distributions from qualified retirement plans can be complex, especially in Delaware. The Delaware Form 329 is specifically designed to assist taxpayers in calculating special tax computations for such distributions. Applicable under certain conditions, this form is crucial for individuals not self-employed receiving distributions due to death, separation from employment, or after reaching the age of 59 1/2, as well as for self-employed individuals under similar circumstances plus instances of prior disability. It precisely outlines how to separate capital gain portions from ordinary income portions of the distribution, provides guidance on applying death benefit exclusions, and explains the calculation of the current actuarial value of an annuity where relevant. However, it's important to note the limitations of Form 329; it is not applicable for distributions that have been rolled over, distributed early for reasons such as medical, education, or housing expenses, or distributions that are subject to the early withdrawal penalty. This form, alongside Form 4972, must be attached to either Form 200 or Form 400, making it a critical step in ensuring compliance with Delaware tax laws for individuals navigating these specific retirement distribution scenarios.
| Question | Answer |
|---|---|
| Form Name | Delaware Form 329 |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | fde329[1003] fourm329 form |
DELAWARE
FORM 329
TAX YEAR
SPECIAL TAX COMPUTATION FOR LUMP SUM
DISTRIBUTION FROM QUALIFIED RETIREMENT PLAN
Lump Sum Distributions
This form applies, in the case of someone who is not
In the case of a
THIS FORM DOES NOT APPLY WHEN YOUR DISTRIBUTION WAS:
LAST NAME(S) AS SHOWN ON RETURN
YOUR FIRST NAME
YOUR SOCIAL SECURITY NUMBER
SPOUSE'S FIRST NAME (IF APPLICABLE)
SPOUSE'S SOCIAL SECURITY NUMBER (IF APPLICABLE)
1.Enter capital gain portion of distribution from Box 3 of Form 1099R...............................
2.Enter ordinary income portion of distribution from Box 2a of Form 1099R......................
3.Add Lines 1 and 2............................................................................................................
4.Death benefit exclusion allowed on Federal Form 4972..................................................
5.Subtract Line 4 from Line 3..............................................................................................
6.Current actuarial value of annuity (if applicable, see Federal instructions).....................
7.Total taxable amount of distribution. Add Lines 5 and 6.................................................
8.Enter 10% of Line 7 (Multiply Line 7 by .1)......................................................................
9.Compute the tax on Line 8 (use Tax Rate Schedule or Table for Form 200)..................
10.Multiply the amount on Line 9 by ten...............................................................................
11.Enter 10% of Line 6 (Multiply Line 6 by .1)......................................................................
12.Compute the tax on Line 11 (use Tax Rate Schedule or Table for Form 200)................
13.Multiply the amount on Line 12 by ten.............................................................................
14.Subtract Line 13 from Line 10..........................................................................................
15.Divide Line 2 by Line 3....................................................................................................
16.Tax on ordinary income portion of distribution (Multiply Line 14 by percentage on Line 15 and enter on Form
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ATTACH FORM 329 AND FORM 4972 TO FORM 200 OR FORM 400
REVISED 10/2/03