U.S. · Form 5329 line 17
Form 5329 line 17 the 6% additional tax.
How the smaller-of rule works, where the tax goes and how the other parts compare.
Line 17 is the additional tax on excess traditional IRA contributions: enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31, 2025 (including 2025 contributions made in 2026). Include the result on Schedule 2 (Form 1040), line 8. If the amount is more than zero, line 16 also carries to line 9 of next year's Form 5329.
Compute line 17
Result
The same 6% rule in each part of Form 5329
| Part | Tax line and rate (2025 form) |
|---|---|
| Part III, traditional IRAs | Line 17: 6% of the smaller of line 16 or the value of your traditional IRAs on December 31, 2025. |
| Part IV, Roth IRAs | Line 25: 6% of the smaller of line 24 or the value of your Roth IRAs on December 31, 2025. |
| Part V, Coverdell ESAs | Line 33: 6% of the smaller of line 32 or the value of your Coverdell ESAs on December 31, 2025. |
| Part VI, Archer MSAs | Line 41: 6% of the smaller of line 40 or the value of your Archer MSAs on December 31, 2025. |
| Part VII, HSAs | Line 49: 6% of the smaller of line 48 or the value of your HSAs on December 31, 2025. |
| Part VIII, ABLE accounts | Line 51: 6% of the smaller of line 50 or the value of your ABLE account on December 31, 2025. |
Why it matters
The smaller-of rule caps the tax at 6% of what is actually in the account at year end: if the excess is larger than the account value, the value is used instead. Paying the tax does not correct the excess, so it can recur each year until the excess is withdrawn or absorbed by unused contribution room in a later year (lines 10 and 13). The form tells you to include the line 17 amount on Schedule 2 (Form 1040), line 8.
Worked example
With a $3,000 excess and traditional IRAs worth only $2,500 on December 31, 2025, the smaller of the two is $2,500, so line 17 is 6% of $2,500, or $150, not $180. With a $15,000 balance it would be $180. These figures are illustrative.
What this page does not do
The calculator also handles the line 9 to 16 build-up if you fill those fields in, but it does not decide whether you have an excess. See the line 16 page for how those lines work, and Parts IV and VII for the Roth and HSA versions.
Sources
- Instructions for Form 5329 (2025): Part III introduction and the lines 9 and 15 rules. Read November 2, 2026.
- Form 5329 (2025): The exact wording of the tax lines 17, 25, 33, 41, 49 and 51. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is Form 5329 line 17?
The 6% additional tax on excess contributions to traditional IRAs.
How do I figure line 17?
Enter 6% (0.06) of the smaller of line 16 or the value of your traditional IRAs on December 31, 2025, including 2025 contributions made in 2026.
Where does the line 17 amount go?
On Schedule 2 (Form 1040), line 8.
Is the 6% rate the same for Roth IRAs and HSAs?
Yes. Lines 25 (Roth IRAs), 33 (Coverdell ESAs), 41 (Archer MSAs), 49 (HSAs) and 51 (ABLE accounts) also use 6% of the smaller of the excess or the account value.
Does a line 17 amount carry forward?
Next year's line 9 uses line 16 of this year's form only if line 17 is more than zero.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.