3805P: Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (2024)
California · FTB · Used for tax years 2024
California Form 3805P calculates additional taxes on early distributions from qualified retirement plans, including IRAs, and certain distributions from other tax-favored accounts. It reports distributions, amounts not subject to additional tax, and the additional tax due.
Who files this form
The 2024 form identifies these situations for completing its three parts:
- Part I, early distributions: You received a taxable distribution before age 59½ from a qualified retirement plan, including an IRA, or a modified endowment contract. You may also need this part if Form 1099-R incorrectly indicates an early distribution or you received a Roth IRA distribution.
- Part II, education and ABLE accounts: You included an amount in income on Schedule CA (540 or 540NR) from a Coverdell education savings account (ESA), qualified tuition program (QTP), or ABLE account.
- Part III, medical savings accounts: You reported a taxable distribution from an Archer or Medicare Advantage medical savings account (MSA) on federal Form 8853.
What you'll need
Depending on which part you complete, the form refers to:
- Federal Form 1099-R, if it incorrectly indicates an early distribution.
- Schedule CA (540 or 540NR) for income from a Coverdell ESA, QTP, or ABLE account.
- Federal Form 8853, including line 8 for taxable Archer MSA distributions and line 13b for additional tax on Medicare Advantage MSA distributions.
- Form 540 or Form 540NR, if you are filing a California income tax return.
You will also need your name, SSN or ITIN, address, and the distribution amounts requested in the applicable parts.
How to file
- Complete the parts that apply to your distributions.
- Include the additional tax from lines 4, 8, 10b, and 11, as applicable, in the total on Form 540, line 63, or Form 540NR, line 73.
- Complete the signature section only if you are filing Form 3805P by itself, not with your tax return. If you are not required to file a California income tax return, the form tells you to sign it and refer to the instructions.
- Check the amended-form box if this is an amended form.
The supplied form does not give a mailing address or e-file directions. No instructions were supplied.
Common mistakes
- Using 2½% for every early distribution: The form warns that a SIMPLE IRA distribution may require a 6% rate instead. It directs you to the instructions.
- Leaving out the exception number on line 2: If you report early distributions that are not subject to additional tax, the form asks for the appropriate exception number from the instructions.
- Overlooking special guidance: The form directs you to the instructions for Roth IRA distributions and for Form 540NR filers completing line 11.
- Completing the signature section when filing with your return: The form says to complete this section only when filing Form 3805P by itself.
Questions people ask
How is the early-distribution tax calculated?
Subtract line 2 from line 1 to get line 3, then multiply line 3 by 2½% for line 4. For a SIMPLE IRA distribution, a 6% rate may apply instead; the form refers you to the instructions.
How is the tax on education and ABLE account distributions calculated?
Subtract distributions not subject to additional tax on line 6 from the income amount on line 5. Multiply the result on line 7 by 2½% to calculate line 8.
What rate applies to taxable Archer MSA distributions?
Line 10b uses a 12.5% rate on the amount on line 9. If you meet an exception, the form says to check line 10a and refers you to the instructions for the exceptions.
Can I file Form 3805P by itself?
The form provides for filing it by itself. If you are not required to file a California income tax return, it tells you to sign the form and refer to the instructions. Those instructions were not supplied.