3805P: Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (2025)
California · FTB · Used for tax years 2025
California Form 3805P calculates additional taxes on early distributions from qualified retirement plans, including IRAs, and modified endowment contracts. It also reports additional taxes on certain distributions from education accounts, ABLE accounts, and Archer and Medicare Ad
Who files this form
The 2025 form tells you to complete the applicable parts in these situations:
- Part I: 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: You included income on Schedule CA (540 or 540NR) from a Coverdell education savings account (ESA), qualified tuition program (QTP), or ABLE account.
- Part III: 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 parts apply to you, the form refers to:
- Federal Form 1099-R: Part I mentions this form when it incorrectly indicates an early distribution.
- Schedule CA (540 or 540NR): Part II applies to certain education and ABLE account distributions included in income on this schedule.
- Federal Form 8853: Part III uses line 8 for taxable Archer MSA distributions and line 13b for additional tax on Medicare Advantage MSA distributions.
- Form 540 or Form 540NR: These returns are used to report the additional tax if you file a California income tax return.
The form also refers to instructions for exceptions and special rules. Those instructions were not provided here.
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 file Form 3805P by itself, rather than with your tax return. If you are not required to file a California income tax return, the form says to sign it and refer to the instructions.
The supplied form does not give a mailing address or e-filing directions, and the instructions are not available here.
Common mistakes
- Overlooking the SIMPLE IRA rule: If any amount on line 3 came from a SIMPLE IRA, the form warns that you may need to use 6% instead of 2½% for that amount. It refers you to the instructions.
- Leaving out the exception number: When reporting early distributions not subject to additional tax on line 2, enter the appropriate exception number from the instructions.
- Completing the signature section unnecessarily: Complete it only when filing this form by itself, not with your tax return.
- Missing special guidance: The form directs Roth IRA recipients and Form 540NR filers reporting Medicare Advantage MSA tax to the instructions.
Questions people ask
What rate does Part I use for early distributions?
Line 4 generally calculates the tax as 2½% of line 3. For a SIMPLE IRA distribution included on line 3, the form says you may need to use 6% instead and refers you to the instructions.
How does Part II calculate tax on education and ABLE account distributions?
Subtract the distributions not subject to additional tax on line 6 from the amount on line 5. Multiply the result on line 7 by 2½% to calculate the tax on line 8.
What does the form say about Archer MSA distributions?
Enter the taxable distribution from federal Form 8853, line 8, on line 9. If you meet an exception to the 12.5% tax, check line 10a. Otherwise, multiply line 9 by 12.5% and enter the tax on line 10b. The form refers to the instructions for exceptions.
Can Form 3805P be filed by itself?
The form provides for filing it by itself. It says to complete the signature section only in that case. If you are not required to file a California income tax return, it directs you to sign the form and refer to the instructions.