Fill Out Your Delaware 329 Form
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Example - Delaware 329 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
%
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
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14.
15.
16.
ATTACH FORM 329 AND FORM 4972 TO FORM 200 OR FORM 400
REVISED 10/2/03
Delaware 329: Usage Guide
Completing the Delaware 329 form requires careful attention to detail, as it involves several calculations based on your lump-sum distribution from a qualified retirement plan. Once you have filled out the form, you will need to attach it along with Form 4972 to either Form 200 or Form 400, depending on your specific tax situation.
- Begin by entering your last name as it appears on your tax return.
- Next, write your first name.
- Provide your Social Security number.
- If applicable, enter your spouse's first name.
- If applicable, include your spouse's Social Security number.
- In Line 1, enter the capital gain portion of your distribution from Box 3 of Form 1099-R.
- For Line 2, input the ordinary income portion of your distribution from Box 2a of Form 1099-R.
- Add the amounts from Lines 1 and 2 and write the total on Line 3.
- If you are eligible, enter the death benefit exclusion allowed on Federal Form 4972 on Line 4.
- Subtract the amount on Line 4 from Line 3 and record the result on Line 5.
- If applicable, enter the current actuarial value of your annuity on Line 6.
- Add the amounts from Lines 5 and 6 to find the total taxable amount of your distribution, which you will write on Line 7.
- Calculate 10% of Line 7 and enter that amount on Line 8.
- Compute the tax on the amount from Line 8 using the Tax Rate Schedule or Table for Form 200 and write that on Line 9.
- Multiply the amount on Line 9 by ten and enter the result on Line 10.
- Calculate 10% of Line 6 and write that amount on Line 11.
- Compute the tax on Line 11 using the Tax Rate Schedule or Table for Form 200 and enter it on Line 12.
- Multiply the amount on Line 12 by ten and record the result on Line 13.
- Subtract Line 13 from Line 10 and write the result on Line 14.
- Divide the amount on Line 2 by the amount on Line 3 and enter that percentage on Line 15.
- Finally, calculate the tax on the ordinary income portion of your distribution by multiplying Line 14 by the percentage on Line 15. Enter this amount on Form 200-01, Line 7, or Form 400, Line 6.
After completing these steps, ensure that you attach the Delaware 329 form and Form 4972 to your Form 200 or Form 400. This will help ensure that your tax return is processed correctly.
Documents used along the form
The Delaware 329 form is an essential document for reporting special tax computations related to lump sum distributions from qualified retirement plans. When preparing this form, you may also need to complete several other forms and documents to ensure compliance with tax regulations. Below is a list of related documents that are often used in conjunction with the Delaware 329 form.
- Form 200: This is the Delaware Individual Income Tax Return. It is used by residents to report their income and calculate their tax liability for the year.
- Form 400: This is the Delaware Corporate Income Tax Return. Corporations use this form to report their income and calculate the taxes owed to the state.
- Form 4972: This form is the Tax on Lump-Sum Distributions. It helps taxpayers determine the tax owed on lump-sum distributions from qualified retirement plans.
- Trailer Bill of Sale Form: For those looking to formalize trailer ownership, a comprehensive Trailer Bill of Sale document is essential for proper documentation and legal compliance.
- Form 1099-R: This form reports distributions from pensions, annuities, retirement plans, or IRAs. It provides crucial information needed for filling out the Delaware 329 form.
- Federal Form 1040: This is the U.S. Individual Income Tax Return. It is used to report personal income and calculate federal tax liability.
- Schedule A (Form 1040): This schedule is for itemizing deductions. Taxpayers may need this if they are claiming deductions that affect their overall tax liability.
- Form W-2: This form reports wages and tax withholdings from employers. It is essential for accurately reporting income on the Delaware 200 or Federal 1040.
- Form 8889: This form is used for Health Savings Accounts (HSAs). If you have distributions from an HSA, this form may be necessary to report those transactions.
Each of these forms serves a specific purpose in the tax reporting process. Ensuring that you have all the necessary documentation will facilitate accurate and efficient tax filing. Always consider consulting a tax professional if you have questions about your specific situation or the forms you need to complete.
Key takeaways
Here are some key takeaways about filling out and using the Delaware 329 form:
- The Delaware 329 form is specifically for lump sum distributions from qualified retirement plans.
- This form is applicable only under certain conditions, such as the participant's death, separation from employment, or if the participant is over 59 1/2 years old.
- Self-employed individuals can use this form if the distribution is due to death, the participant being over 59 1/2, or if the participant was previously disabled.
- The form does not apply if the distribution was rolled over, was an early distribution for specific exclusions, or was subject to an early withdrawal penalty.
- It is important to accurately enter the capital gain and ordinary income portions of the distribution as indicated on Form 1099R.
- After completing the calculations, attach the Delaware 329 form and Form 4972 to either Form 200 or Form 400 for submission.
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File Details
| Fact Name | Details |
|---|---|
| Purpose | The Delaware Form 329 is used to calculate the special tax for lump sum distributions from qualified retirement plans. |
| Eligibility Criteria | This form is applicable to individuals who are not self-employed and have received a distribution due to death, separation from employment, or after reaching age 59 1/2. |
| Self-Employed Conditions | For self-employed individuals, the form applies only if the distribution was due to death, reaching age 59 1/2, or if the participant was previously disabled. |
| Exclusions | The form does not apply to distributions that were rolled over, early distributions for medical, education, or housing exclusions, or those subject to early withdrawal penalties on the Federal Form 1040. |
| Required Information | Taxpayers must provide their last name, first name, Social Security number, and, if applicable, their spouse's information. |
| Tax Computation | The form includes multiple lines for calculating taxable amounts, including capital gains and ordinary income portions of the distribution. |
| Governing Law | Delaware law governs the use and requirements of Form 329, particularly in relation to tax computations for retirement distributions. |
| Submission Requirements | Form 329 must be attached to either Form 200 or Form 400 when submitted to the state. |