IRS Releases 2026 Draft Instructions for Form 5329

The Internal Revenue Service has released 2026 tax year draft Instructions for Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. In addition to qualified plans and individual retirement accounts (IRAs), this form is used to report excise taxes applicable to 529 plans, Coverdell education savings accounts (ESAs), health savings accounts (HSAs), Archer medical savings accounts (MSAs), Achieving a Better Life Experience (ABLE) accounts, and now Trump accounts. The form can also be used to submit a penalty waiver request to the IRS.