On page 3 in the bulleted list in the section entitled, Part I – Additional Tax on Early Distributions, add the following note after the 7th bullet that reads as follows: Note. Any related IRA earnings withdrawn with excess IRA contributions are subject to the 10% additional tax on early distributions if you were under age 59 1/2 at the time of the distribution. On page 6 in the line 15 instructions add the following at the end of the bulleted list: Also, if you hadn't reached age 59 1/2 at the time of the withdrawal, include the earnings as an early distribution on line 1 of Form 5329 for the year in which you report the earnings. On page 6 in the line 23 instructions add the following at the end of the bulleted list: Also, if you hadn't reached age 59 1/2 at the time of the withdrawal, include the earnings as an early distribution on line 1 of Form 5329 for the year in which you report the earnings. Please note for tax year 2022, earnings on excess contributions received before reaching age 59 ½ are subject to the 10% early distribution tax. However, the income on corrective distributions of excess contributions made on or after December 29, 2022, are not subject to the 10% early distribution tax.
