Form 5329
What is Form 5329?
Form 5329 is the IRS form used to report additional taxes on qualified plans and IRAs, including the 6% excess contribution penalty, the 10% early-withdrawal penalty, and the 25% missed-RMD excise tax (reducible to 10% with timely correction under SECURE 2.0). You file Form 5329 with your annual tax return when any of these penalties apply.
Why does form 5329 matter for Gold IRA investors?
Form 5329 is how you correct missed Gold IRA RMDs to qualify for the reduced 10% penalty rather than the full 25% excise tax. Filing the form correctly within the IRS correction window can save thousands of dollars on a missed distribution. Skipping the form when a penalty applies invites IRS notices and additional interest.