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Figure the early withdrawal penalty using Form 5329 if any of your non-qualified Roth IRA distribution is taxable. This only occurs if you are taking out earnings from your Roth IRA because withdrawing contributions isn't taxable. Also, if you have an exception to the penalty, such as higher education expenses, document it on Form 5329. Step 5
An individual retirement arrangement (IRA) is a tax-favored personal savings arrangement, which allows you to set aside money for retirement. There are several different types of IRAs, including traditional IRAs and Roth IRAs.f you made nondeductible contributions to a traditional IRA, you need to attach Form 8606 (PDF), Nondeductible IRAs. Use Form 8880 (PDF), Credit for Qualified Retirement Savings Contributions, to determine whether you are also eligible for a tax credit. Enter the amount of the credit on either Form 1040A or Form 1040.