In this situation, Form 5329 would not be required. The 10% excise tax/penalty of $2 can be listed directly on the 1040 on Schedule 2 line 8 with the box next to the line checked indicating no Form 5329 being filed.Do what retiredjg said and avoid the penalty. That'll save you the effort of dealing with Form 5329 to document the tiny penalty.
+1
How much time and effort do you want to spend for $2? I wouldn't spend the effort.
Statistics: Posted by MarkNYC — Thu Dec 12, 2024 10:54 am
