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Changes to 2003 Forms

2003 Updates to Form 3805P

Revision Date: 05/03/2004

Revision Details: Revision to the Instructions for Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts: Flat Form, Page 2; Package X, Page 541.

The Internet version of the instructions has been revised due to the passage of AB 1115 in 2002. Nonresident taxpayers no longer receive a stepped-up basis for annual contributions and earnings on them simply because they were a nonresident when they made the contributions. The nonresident taxpayer's basis will be decreased and the nonresident taxpayer will owe additional tax on early distributions.

  • Instructions for FTB 3805P, page 2, column 1, paragraph 1, 4th bullet

It should read:

The part of your IRA distribution that represents a return of nondeductible contributions made before 1987 or annual contributions ( not rollover contributions from employer-sponsored plans) plus earnings made as a nonresident.

The revised internet version is available for download.


2003 Updates to Form 3805P

Revision Date: 03/30/2004

Revision Details: FTB 3805P - Instructions for Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts, for the flat 3805P and in Pkg X, pages 541 and 542.

These revisions of the FTB 3805P references are required to conform to the Federal Form 8606 and Form 5329 revisions. It could potentially affect a ROTH IRA distribution that was not a qualified distribution and give a taxpayer increased tax liability.

  • Page 2, column 2, Roth IRA Distributions, paragraph 1, 2, and bulleted items

It should read:

If you received a Roth IRA distribution you must generally include on line 1 of form FTB 3805P the amount from your 2003 federal Form 8606, line 19, even if you were age 59 1/2. However, the amount to include on line 1 of form FTB 3805P may be smaller if you have an amount on line 18c....

  • Page 2, column 2, Roth IRA Distributions, paragraph 2 and bulleted items

It should read:

In this case, you must recompute the amount to include on line 1 of form FTB 3805P by allocating the amount on your 2003 federal form 8606, line 19. The amount on your 2003 federal Form 8606, line 19, is allocable....your 1999, 2000, 2001, or 2002 federal Form 8606, line 19).

  • Your 2003 federal Form 8606, line 23.
  • Your 2003 federal Form 8606, line 20.
  • Your 1998 FTB Pub 1005A, lines 17 and 16c.
  • ...........
  • ...........
  • ...........
  • ...........
  • ...........
  • Your 2003 federal Form 8606, line 25 (completed using California amounts).
  • Page 3, column 1, paragraph 1 and bulleted items

It should read:

Any portion of your 2003 federal Form 8606, line 19, allocable to an amount on any .........line 1 of form FTB 3805P:

  • Delete this item
  • ...........
  • ...........
  • ...........
  • ...........
  • ...........
  • Your 2003 federal Form 8606, line 25 (completed using California amounts).

The revised internet version is available for download.

Back to Tax Form Changes for 2003