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CAUTION

If you must include any amount in your gross in- come, you may have to increase your withholding or make estimated tax payments. See Pub. 505.

Rollovers to Roth IRAs. You can roll over distributions directly from a qualified retirement plan (other than a designated Roth account) to a Roth IRA. You must include in your gross income distributions from a qualified retirement plan (other than a designated Roth account) that you would have had to include in income if you hadn’t rolled them over into a Roth IRA. In addition, the 10% additional tax on early distributions doesn’t apply. You don’t include

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over your life expectancy. These special additional taxes are the taxes on:

• Early distributions, and

• Excess accumulation (not receiving minimum distributions).

These taxes are discussed in the following sections.

If you must pay either of these taxes, report them on Form 5329. However, you don’t have to file Form 5329 if you owe only the tax on early distributions and your Form 1099-R correctly shows code “1” in box 7. Instead, enter 10% of the taxable part of the distribution on Schedule 2 (Form 1040), line 8. Also check the box on line 8 to indicate that you don’t have to file Form 5329.

Even if you don’t owe any of these taxes, you may have to complete Form 5329 and attach it to your Form 1040, 1040-SR, or 1040-NR. You should complete Form 5329 if you meet an exception to the tax on early distributions but box 7 of your Form 1099-R doesn’t indicate an exception.