I am reviewing a Form 5500 for a multiemployer holiday fund that terminated. At the termination, excess assets were reverted back to the participating employers. On the Schedule H, where should the reversion amount go?

It's my understanding that a reversion of assets is not allowed in a multiemployer plan. You might want to cross-post your question to the multiemployer forum.

If it is determined that the reversion to the participating employers is a disqualified benefit, of which each employer is subject to a tax equal to 100% and the amounts are paid from the trust, how are these payments reported on the Form 5500 Schedule H? I understand that this amount is reported on under item 5a, but where would this be reported on the income/expense section, so that the fund balances to 0?

Always appreciate any feedback. Thanks again.