Instructions for Form 5330

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(Rev. December 2025)

Return of Excise Taxes Related to Employee Benefit Plans

Section references are to the Internal Revenue Code

unless otherwise noted.

Future Developments

For the latest information about developments related to

Form 5330 and its instructions, such as legislation

enacted after they were published, go to IRS.gov/

Form5330.

What’s New

Financial institution that is a disqualified person. A

financial institution that is a disqualified person who

engaged in a prohibited transaction with respect to

multiple IRAs or plans should file only one Form 5330

under that financial institution’s employer identification

number (EIN), pay the appropriate tax, and attach a list of

all impacted IRAs or plans. Do not file a separate Form

5330 for each impacted IRA or plan.

Direct deposit and electronic payments. If you have

access to U.S. banking services or electronic payment

systems, you should use direct deposit for any refunds.

The IRS also recommends paying electronically,

whenever possible.

Making a payment. If there is a balance due on Part II,

line 19, go to IRS.gov/Payments for information on how to

make a payment. See the instructions for Part II, Line 19,

later, for more information.

Direct deposit. Direct deposit fields have been added

onto the form on Part II, lines 20b, 20c, and 20d. If there is

an overpayment on Part II, line 20a, enter your direct

deposit information on Part II, lines 20b, 20c, and 20d.

See Part II, Line 20a, later, for more information.

Reminders

Mandatory electronic filing. Any employer or individual

required to file an excise tax return on Form 5330 must file

the excise tax return electronically for tax years ending on

or after 2023, if the filer is required to file at least 10

returns of any type during the calendar year that the Form

5330 is due. See Regulations section 54.6011-3 and T.D.

9972 available at IRS.gov/irb/2023-11_IRB#TD-9972 for

more information.

Extension. Use Form 8868, Application for Extension of

Time To File an Exempt Organization Return or Excise

Taxes Related to Employee Benefit Plans, to request an

extension of time to file Form 5330. If approved, you may

be granted an extension of up to 6 months after the

normal due date of Form 5330.

Feb 4, 2026

General Instructions

Purpose of Form

File Form 5330 to report the tax on:

• A prohibited tax shelter transaction (section 4965(a)

(2));

• A minimum funding deficiency (section 4971(a) and

(b));

• A failure to pay liquidity shortfall (section 4971(f));

• A failure to comply with a funding improvement or

rehabilitation plan (section 4971(g)(2));

• A failure to meet requirements for plans in endangered

or critical status (section 4971(g)(3));

• A failure to adopt rehabilitation plan (section 4971(g)

(4));

• A failure to adopt funding restoration plan (section

4971(h));

• Nondeductible contributions to qualified plans (section

4972);

• Excess contributions to a section 403(b)(7)(A)

custodial account (section 4973(a)(3));

• A prohibited transaction (section 4975);

• A disqualified benefit provided by funded welfare

plans (section 4976);

• Excess fringe benefits (section 4977);

• Certain employee stock ownership plan (ESOP)

dispositions (section 4978);

• Excess contributions to plans with cash or deferred

arrangements (section 4979);

• Certain prohibited allocations of qualified securities by

an ESOP (section 4979A);

• Reversions of qualified plan assets to employers

(section 4980); and

• A failure of an applicable plan reducing future benefit

accruals to satisfy notice requirements (section

4980F).

Who Must File

A Form 5330 must be filed by any of the following.

1. A plan entity manager of a tax-exempt entity who

approves, or otherwise causes the entity to be party

to, a prohibited tax shelter transaction during the tax

year and knows or has reason to know the transaction

is a prohibited tax shelter transaction under section

4965(a)(2).

2. An employer liable for the tax under section 4971 for

failure to meet the minimum funding standards under

section 412.

3. An employer liable for the tax under section 4971(f)

for a failure to meet the liquidity requirement of section

430(j) (or section 412(m)(5) as it existed prior to

amendment by the Pension Protection Act of 2006

Instructions for Form 5330 (Rev. 12-2025) Catalog Number 11871X

Department of the Treasury Internal Revenue Service www.irs.gov

(PPA ’06)), for plans with delayed effective dates

under PPA ’06.

4. An employer with respect to a multiemployer plan

liable for the tax under section 4971(g)(2) for failure to

comply with a funding improvement or rehabilitation

plan under section 432.

5. An employer with respect to a multiemployer plan

liable for the tax under section 4971(g)(3) for failure to

meet the requirements for plans in endangered or

critical status under section 432.

6. A multiemployer plan sponsor liable for the tax under

section 4971(g)(4) for failure to adopt a rehabilitation

plan within the time required under section 432.

7. A cooperative and small employer charity (CSEC)

plan sponsor liable for the tax under section 4971(h)

for failure to adopt a funding restoration plan within

the time required under section 433(j)(3).

8. An employer liable for the tax under section 4972 for

nondeductible contributions to qualified plans.

9. An individual liable for the tax under section 4973(a)

(3) because an excess contribution to a section

403(b)(7)(A) custodial account was made for them

and that excess has not been eliminated, as specified

in sections 4973(c)(2)(A) and (B).

10. A disqualified person liable for the tax under section

4975 for participating in a prohibited transaction

(other than a fiduciary acting only as such), or an

individual or the individual’s beneficiary who engages

in a prohibited transaction with respect to the

individual’s retirement account, unless section 408(e)

(2)(A) or section 408(e)(4) applies, for each tax year

or part of a tax year in the taxable period applicable to

such prohibited transaction.

11. An employer liable for the tax under section 4976 for

maintaining a funded welfare benefit plan that

provides a disqualified benefit during any tax year.

12. An employer who pays excess fringe benefits and has

elected to be taxed under section 4977 on such

payments.

13. An employer or worker-owned cooperative, as defined

in section 1042(c)(2), that maintains an ESOP that

disposes of the qualified securities, as defined in

section 1042(c)(1), within the specified 3-year period

(see section 4978).

14. An employer liable for the tax under section 4979 on

excess contributions to plans with a cash or deferred

arrangement, etc.

15. An employer or worker-owned cooperative that made

the written statement described in section 664(g)(1)

(E) or 1042(b)(3)(B) and made an allocation

prohibited under section 409(n) of qualified securities

of an ESOP taxable under section 4979A; or, an

employer or worker-owned cooperative who made an

allocation of S corporation stock of an ESOP

prohibited under section 409(p) taxable under section

4979A.

16. An employer who receives an employer reversion

from a deferred compensation plan taxable under

section 4980.

17. An employer or multiemployer plan liable for the tax

under section 4980F for failure to give notice of a

significant reduction in the rate of future benefit

accrual.

A Form 5330 and tax payment is required for any of the

following.

• Each year any of the following under Who Must File,

earlier, apply: (1), (2), (3), (5), (6), (7), (8), (9), (10),

(11), (12), (13), (14), or (16).

• Each failure of an employer to make the required

contribution to a multiemployer plan, as required by a

funding improvement or rehabilitation plan under

section 432.

• A reversion of plan assets from a qualified plan

taxable under section 4980.

• Each year or part of a year in the taxable period in

which a prohibited transaction occurs under section

4975. See the instructions for Schedule C, Line 2,

columns (d) and (e), later, for a definition of taxable

period.

When To File

File one Form 5330 to report all excise taxes with the

same filing due date. However, if the taxes are from

separate plans, file separate forms for each plan.

Note: A financial institution that is a disqualified person

who engaged in a prohibited transaction with respect to

multiple IRAs or plans should file only one Form 5330

under that financial institution’s EIN, pay the appropriate

tax and attach a list of all impacted IRAs or plans. Do not

file a separate Form 5330 for each impacted IRA or plan.

Generally, filing Form 5330 starts the statute of

limitations running only with respect to the particular

excise tax(es) reported on that Form 5330. However,

statutes of limitations with respect to the prohibited

transaction excise tax(es) are based on the filing of the

applicable Form 5500, Annual Return/Report of Employee

Benefit Plan.

Use Table 1 to determine the due date of Form 5330.

Extension. A filer must use Form 8868, Application for

Extension of Time To File an Exempt Organization Return

or Excise Taxes Related to Employee Benefit Plans, to

request for an extension of time to file Form 5330. You

may be granted an extension of up to 6 months after the

normal due date of Form 5330 if Form 8868 is filed on or

before the normal due date (not including any extensions)

of the return. Form 5558, Application for Extension of

Time To File Certain Employee Plan Returns, is no longer

used for an extension of time to file Form 5330.

You must file a separate Form 8868 for each excise tax

that has a different filing due date for the Form 5330.

However, you can file one Form 8868 if each excise tax on

the Form 5330 has the same filing due date.

Caution: Form 8868 does not extend the time to pay your

taxes. Any tax due must be paid with this application for

an extension of time to file Form 5330. Additionally,

Instructions for Form 5330 (Rev. 12-2025)

Table 1. Excise Tax Due Dates

IF the taxes are due under

section . . .

THEN file Form 5330 by the . . .

4965

15th day of the 5th month following the close of the entity manager’s tax year during which the

tax-exempt entity becomes a party to the transaction.

4971

15th day of the 10th month after the last day of the plan year.

4971(f)

15th day of the 10th month after the last day of the plan year.

4971(g)(2)

15th day of the 10th month after the last day of the plan year.

4971(g)(3)

15th day of the 10th month after the last day of the plan year.

4971(g)(4)

15th day of the 10th month after the last day of the plan year.

4971(h)

15th day of the 10th month after the last day of the plan year.

4972

last day of the 7th month after the end of the tax year of the employer or other person who must file this

return.

4973(a)(3)

last day of the 7th month after the end of the tax year of the individual who must file this return.

4975

last day of the 7th month after the end of the tax year of the employer or other person who must file this

return.

4976

last day of the 7th month after the end of the tax year of the employer or other person who must file this

return.

4977

last day of the 7th month after the end of the calendar year in which the excess fringe benefits were

paid to your employees.

4978

last day of the 7th month after the end of the tax year of the employer or other person who must file this

return.

4979

last day of the 15th month after the close of the plan year to which the excess contributions or excess

aggregate contributions relate.

4979A

last day of the 7th month after the end of the tax year of the employer or other person who must file this

return.

4980

last day of the month following the month in which the reversion occurred.

4980F

last day of the month following the month in which the failure occurred.

If the filing due date falls on a Saturday, Sunday, or legal holiday, the return may be filed on the next business day.

interest is charged on taxes not paid by the due date even

if an extension of time to file is granted. See the

Instructions for Form 8868.

How To File

Electronic filing. An employer or an individual required

to file an excise tax return related to employee benefit

plans can file Form 5330 electronically using the IRS

Modernized e-file (MeF) System through an IRS

Authorized e-filing Provider. All filers are encouraged to

file Form 5330 electronically because it is safe, easy to

complete, and you have an immediate record that the

return was filed.

Mandatory electronic filing. Under Regulations section

54.6011-3, any employer or individual required to file an

excise tax return on Form 5330 must file the excise tax

return electronically for tax years ending on or after

December 31, 2023, if the filer is required to file at least 10

returns of any type during the calendar year that the Form

5330 is due. See T.D. 9972 available at IRS.gov/irb/

2023-11_IRB#TD-9972 for more information. The failure

to file a return electronically when required is deemed a

failure to file the return even if the filer submits a paper

return.

Instructions for Form 5330 (Rev. 12-2025)

Returns for purposes of these instructions include

information returns (for example, Forms W-2 and Forms

1099), income tax returns, employment tax returns

(including quarterly Forms 941, Employer’s QUARTERLY

Federal Tax Return), and excise tax returns.

On a year-by-year and form-by-form basis, the IRS may

waive the requirement to file Form 5330 electronically in

cases of undue hardship. In certain circumstances, a filer

may be administratively exempt from the requirement to

file electronically. If the IRS’s systems do not support

electronic filing, the filer will not be required to file

electronically. The filer should maintain documentation

supporting their undue hardship or other applicable

reason for not filing electronically in the filer’s records. For

more information about mandatory electronic filing based

on the 10-return threshold, waivers, and exemptions, see

Regulations section 54.6011-3.

Paper forms for filing. Form 5330 can be filed on paper

if a filer is not subject to the electronic filing requirement

under Regulations section 54.6011-3. The official IRS

printed Form 5330 can be found on the IRS website and

downloaded to your computer to print and sign before

mailing to the address specified in these instructions. See

Where To File, below. You can complete paper Form 5330

by hand with pen or typewriter using only blue or black ink.

Entries should not exceed the lines provided on the form.

You can find Form 5330 and its instructions by visiting the

IRS Internet website at IRS.gov/FormsPubs.

Where To File

File the paper Form 5330 at the following address:

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201

Note: If an employer or individual required to file the Form

5330 fails to file the return electronically when required to

do so, the filer is considered not to have filed the return

even if the filer submits a paper return. See Regulations

section 301.6651-1 for more information relating to the

failure to file a tax return.

Private delivery services (PDSs). You can use certain

PDSs designated by the IRS to meet the “timely mailing as

timely filing/paying” rule for tax returns and payments. Go

to IRS.gov/PDS for the current list of designated services.

The PDS can tell you how to get written proof of the

mailing date.

For the IRS mailing address to use if you’re using a

PDS, go to IRS.gov/PDSstreetAddresses.

Caution: Private delivery services cannot deliver items to

P.O. boxes. You must use the U.S. Postal Service to mail

any item to an IRS P.O. box address.

Interest and Penalties

Interest. We are required by law to charge interest when

you do not pay your liability on time. Generally, we

calculate interest on any unpaid balance from the due

date of your return (regardless of extensions of time to file)

until you pay the amount you owe in full, including accrued

interest and any penalty charges. Interest on some

penalties accrues on any unpaid balance from the date we

notify you of the penalty until it is paid in full. Interest on

other penalties, such as failure to file a tax return, starts

from the due date or extended due date of the return.

Interest rates are variable and may change quarterly. See

section 6601.

Penalty for late filing of return. If you do not file a return

by the due date, including extensions, you may have to

pay a penalty of 5% of the unpaid tax for each month or

part of a month the return is late, up to a maximum of 25%

of the unpaid tax. The penalty will not be imposed if you

can show that the failure to file on time was due to

reasonable cause. If you file late, you may attach a

statement to Form 5330 explaining the reasonable cause.

Penalty for late payment of tax. If you do not pay the

tax when due, you may have to pay a penalty of 1/2 of 1%

of the unpaid tax for each month or part of a month the tax

is not paid, up to a maximum of 25% of the unpaid tax.

The penalty will not be imposed if you can show that the

failure to pay on time was due to reasonable cause.

Interest and penalties for late filing and late payment

will be billed separately after the return is filed.

Claim for Refund or Credit/Amended

Return

File an amended Form 5330 for any of the following.

• To claim a refund of overpaid taxes reportable on

Form 5330.

• To receive a credit for overpaid taxes.

• To report additional taxes due within the same tax year

of the filer if those taxes have the same due date as

those previously reported. Check the box in item H of

the entity section of the form and report the correct

amount of taxes on Schedule A through L, as

appropriate, and on Part I, lines 1 through 16. See the

instructions for Part II, Amended return, later.

If you file an amended return to claim a refund or credit,

the claim must state in detail the reasons for claiming the

refund. In order for the IRS to promptly consider your

claim, you must provide the appropriate supporting

evidence. See Regulations section 301.6402-2 for more

details.

Specific Instructions

Filer tax year. Enter the tax year of the employer, entity,

or individual on whom the tax is imposed by using the plan

year beginning and ending dates entered in Part I of Form

5500 or by using the tax year of the business return filed.

Item A. Name and address of filer. Enter the name and

address of the employer, individual, or other entity who is

liable for the tax.

Include the suite, room, or other unit number after the

street number. If the post office does not deliver mail to

the street address and you have a P.O. box, show the box

number instead of the street address.

If the plan has a foreign address, enter the information

in the following order: city or town, state or province,

country, and ZIP or foreign postal code. Follow the

country’s practice for entering the postal code. Do not

abbreviate the country name.

Item B. Filer’s identifying number. Enter the filer’s

identifying number in the appropriate section. The filer’s

identifying number is either the filer’s employer

identification number (EIN) or the filer’s social security

number (SSN), but not both. The identifying number of an

individual, other than a sole proprietor with an EIN, is the

individual’s SSN. The identifying number for all other filers

is their EIN. The EIN is the nine-digit number assigned to

the plan sponsor/employer, entity, or individual on whom

the tax is imposed.

Item C. Name of plan. Enter the formal name of the plan

or enough information to identify the plan.

This should be the same name indicated on the Form

5500 series return/report if that form is required to be filed

for the plan.

Item D. Name and address of plan sponsor. The term

“plan sponsor” means the following.

1. The employer, for an employee benefit plan

established or maintained by a single employer.

Instructions for Form 5330 (Rev. 12-2025)

2. The employee organization, in the case of a plan of an

employee organization.

3. The association, committee, joint board of trustees, or

other similar group of representatives of the parties

who establish or maintain the plan, if the plan is

established or maintained jointly by one or more

employers and one or more employee organizations,

or by two or more employers.

Include the suite, room, or other unit number after the

street number. If the post office does not deliver mail to

the street address and you have a P.O. box, show the box

number instead of the street address.

If the plan has a foreign address, enter the information

in the following order: city or town, state or province, and

country. Follow the country’s practice for entering the

postal code. Do not abbreviate the country name.

Item E. Plan sponsor’s EIN. Enter the nine-digit EIN

assigned to the plan sponsor. This should be the same

number used to file the Form 5500 series return/report.

Item F. Plan year ending. “Plan year” means the

calendar or fiscal year on which the records of the plan are

kept. Enter eight digits in month/date/year order. This

number assists the IRS in properly identifying the plan and

time period for which Form 5330 is being filed. For

example, a plan year ending March 31, 2024, should be

shown as 03/31/2024.

Item G. Plan number. Enter the three-digit number that

the employer or plan administrator assigned to the plan.

This three-digit number is used with the EIN entered on

item B and is used by the IRS, the Department of Labor,

and the Pension Benefit Guaranty Corporation as a unique

12-digit number to identify the plan.

Caution: If the plan number is not provided, this will

cause a delay in processing your return.

Item H. Amended return. If you are filing an amended

Form 5330, check the box on this line, and see the

instructions for Part II, Amended return. Also, see Claim

for Refund or Credit/Amended Return, earlier.

Part I. Taxes

Line 4. Enter the total amount of the disqualified benefit

under section 4976. Section 4976 imposes an excise tax

on employers who maintain a funded welfare benefit plan

that provides a disqualified benefit during any tax year.

The tax is 100% of the disqualified benefit.

Generally, a disqualified benefit is any of the following.

• Any post-retirement medical benefit or life insurance

benefit provided for a key employee unless the benefit

is provided from a separate account established for

the key employee under section 419A(d).

• Any post-retirement medical benefit or life insurance

benefit unless the plan meets the nondiscrimination

requirements of section 505(b) for those benefits.

• Any portion of the fund that reverts to the benefit of the

employer.

Lines 5a and 5b. Section 4978 imposes an excise tax on

the sale or transfer of securities acquired in a sale or

qualified gratuitous transfer to which section 1042 or

Instructions for Form 5330 (Rev. 12-2025)

section 664(g) applied, respectively, if the sale or transfer

takes place within 3 years after the date of the acquisition

of qualified securities, as defined in section 1042(c)(1) or

a section 664(g) transfer.

The tax is 10% of the amount realized on the

disposition of the qualified securities if an ESOP or eligible

worker-owned cooperative, as defined in section 1042(c)

(2), disposes of the qualified securities within the 3-year

period described above, and either of the following

applies.

• The total number of shares held by that plan or

cooperative after the disposition is less than the total

number of employer securities held immediately after

the sale.

• Except to the extent provided in regulations, the value

of qualified securities held by the plan or cooperative

after the disposition is less than 30% of the total value

of all employer securities as of the disposition (60% of

the total value of all employer securities in the case of

any qualified employer securities acquired in a

qualified gratuitous transfer to which section 664(g)

applied).

See section 4978(b)(2) for the limitation on the amount

of tax.

The section 4978 tax must be paid by the employer or

the eligible worker-owned cooperative that made the

written statement described in section 1042(b)(3)(B) on

dispositions that occurred during their tax year.

The section 4978 tax does not apply to a distribution of

qualified securities or sale of such securities if any of the

following occurs.

• The death of the employee.

• The retirement of the employee after the employee

has reached age 591/2.

• The disability of the employee (within the meaning of

section 72(m)(7)).

• The separation of the employee from service for any

period that results in a 1-year break in service, as

defined in section 411(a)(6)(A).

For purposes of section 4978, an exchange of qualified

securities in a reorganization described in section 368(a)

(1) for stock of another corporation will not be treated as a

disposition.

Tip: For section 4978 excise taxes, the amount entered

on Part I, line 5a, is the amount realized on the disposition

of qualified securities, multiplied by 10%. Also, check the

appropriate box on line 5b.

Line 6. Section 4979A imposes a 50% excise tax on

allocated amounts involved in any of the following.

1. A prohibited allocation of qualified securities by any

ESOP or eligible worker-owned cooperative.

2. A prohibited allocation described in section 664(g)(5)

(A). Section 664(g)(5)(A) prohibits any portion of the

assets of the ESOP attributable to securities acquired

by the plan in a qualified gratuitous transfer to be

allocated to the account of:

a. Any person related to the decedent within the

meaning of section 267(b) or a member of the

decedent’s family within the meaning of section

2032A(e)(2); or

b. Any person who, at the time of the allocation or at

any time during the 1-year period ending on the

date of the acquisition of qualified employer

securities by the plan, is a 5% shareholder of the

employer maintaining the plan.

3. The accrual or allocation of S corporation shares in an

ESOP during a nonallocation year constituting a

prohibited allocation under section 409(p).

4. A synthetic equity owned by a disqualified person in

any nonallocation year.

Prohibited allocations for ESOP or worker-owned

cooperative. For purposes of items 1 and 2 above, a

“prohibited allocation of qualified securities by any ESOP

or eligible worker-owned cooperative” is any allocation of

qualified securities acquired in a nonrecognition-of-gain

sale under section 1042, which violates section 409(n),

and any benefit that accrues to any person in violation of

section 409(n).

Under section 409(n), an ESOP or worker-owned

cooperative cannot allow any portion of assets attributable

to employer securities acquired in a section 1042 sale to

accrue or be allocated, directly or indirectly, to the

taxpayer, or any person related to the taxpayer, involved in

the transaction during the nonallocation period. For

purposes of section 409(n), relationship to the taxpayer is

defined under section 267(b).

The nonallocation period is the period beginning on the

date the qualified securities are sold and ending on the

later of:

• 10 years after the date of sale, or

• The date on which the final payment is made if

acquisition indebtedness was incurred at the time of

sale.

The employer sponsoring the plan or the eligible

worker-owned cooperative is responsible for paying the

tax.

For purposes of items 3 and 4, under Line 6, earlier, the

excise tax on these transactions under section 4979A is

50% of the amount involved. The amount involved

includes the following.

1. The value of any synthetic equity owned by a

disqualified person in any nonallocation year.

“Synthetic equity” means any stock option, warrant,

restricted stock, deferred issuance stock right, or

similar interest or right that gives the holder the right

to acquire or receive stock of the S corporation in the

future. Synthetic equity may also include a stock

appreciation right, phantom stock unit, or similar right

to a future cash payment based on the value of the

stock or appreciation; and nonqualified deferred

compensation as described in Regulations section

1.409(p)-1(f)(2)(iv). The value of a synthetic equity is

the value of the shares on which the synthetic equity

is based or the present value of the nonqualified

deferred compensation.

2. The value of any S corporation shares in an ESOP

accruing during a nonallocation year or allocated

directly or indirectly under the ESOP or any other plan

of the employer qualified under section 401(a) for the

benefit of a disqualified person. For additional

information, see Regulations section 1.409(p)-1(b)(2).

3. The total value of all deemed-owned shares of all

disqualified persons.

For purposes of determining a nonallocation year, the

attribution rules of section 318(a) will apply; however, the

option rule of section 318(a)(4) will not apply. Additionally,

the attribution rules defining family member are modified

to include the individual’s:

• Spouse,

• Ancestor or lineal descendant of the individual or the

individual’s spouse, and

• A brother or sister of the individual or of the

individual’s spouse and any lineal descendant of the

brother or sister.

A spouse of an individual legally separated from an

individual under a decree of divorce or separate

maintenance is not treated as the individual’s spouse.

An individual is a disqualified person if:

• The total number of shares owned by the person and

the members of the person’s family, as defined in

section 409(p)(4)(D), is at least 20% of the

deemed-owned shares, as defined in section 409(p)

(4)(C), in the S corporation; or

• The person owns at least 10% of the deemed-owned

shares, as defined in section 409(p)(4)(C), in the S

corporation.

Caution: Under section 409(p)(7), the Secretary of the

Treasury may, through regulations or other guidance of

general applicability, provide that a nonallocation year

occurs in any case in which the principal purpose of the

ownership structure of an S corporation constitutes an

avoidance or evasion of section 409(p). See Regulations

section 1.409(p)-1.

For section 4979A excise taxes, the amount entered on

Part I, line 6, is 50% of the amount involved in the

prohibited allocations described in items 1 through 4,

earlier, under Line 6.

Line 10a. Under section 4971(g)(2), each employer who

contributes to a multiemployer plan and fails to comply

with a funding improvement or rehabilitation plan will be

liable for an excise tax for each failure to make a required

contribution within the time frame under such plan. Enter

the amount of each contribution the employer failed to

make in a timely manner.

A funding improvement plan is a plan which consists of

the actions, including options or a range of options to be

proposed to the bargaining parties, formulated to provide,

based on reasonably anticipated experience and

reasonable actuarial assumptions, for the attainment of

the following requirements by the plan during the funding

improvement period.

1. The plan’s funded percentage as of the close of the

funding improvement period equals or exceeds a

percentage equal to the sum of:

a. The percentage as of the beginning of the funding

improvement period, plus

Instructions for Form 5330 (Rev. 12-2025)

b. 33% of the difference between 100% and the

percentage as of the beginning of the funding

improvement period (or 20% of the difference if

the plan is in seriously endangered status).

2. No accumulated funding deficiency for any plan year

during the funding improvement period, taking into

account any extension of the amortization period

under section 431(d).

A rehabilitation plan is a plan which consists of actions,

including options or a range of options to be proposed to

the bargaining parties, formulated to enable the plan to

cease to be in critical status by the end of the

rehabilitation period.

All or part of this excise tax may be waived under

section 4971(g)(5).

Line 16. If a tax-exempt entity manager approves or

otherwise causes the entity to be a party to a prohibited

tax shelter transaction during the year and knows or has

reason to know that the transaction is a prohibited tax

shelter transaction, the entity manager must pay an excise

tax under section 4965(b)(2).

For purposes of section 4965, plan entities are:

• Qualified pension, profit-sharing, and stock bonus

plans described in section 401(a);

• Annuity plans described in section 403(a);

• Annuity contracts described in section 403(b);

• Qualified tuition programs described in section 529;

• Retirement plans maintained by a governmental

employer described in section 457(b);

• Individual retirement accounts within the meaning of

section 408(a);

• Individual retirement annuities within the meaning of

section 408(b);

• Archer medical savings accounts (MSAs) within the

meaning of section 220(d);

• Coverdell education savings accounts described in

section 530; and

• Health savings accounts (HSAs) within the meaning of

section 223(d).

An entity manager is the person who approves or

otherwise causes the entity to be a party to a prohibited

tax shelter transaction.

The excise tax under section 4965(a)(2) is $20,000 for

each approval or other act causing the organization to be

a party to a prohibited tax shelter transaction.

A prohibited tax shelter transaction is any listed

transaction and any prohibited reportable transaction, as

defined later.

1. A listed transaction is a reportable transaction that is

the same as, or substantially similar to, a transaction

specifically identified by the Secretary of the Treasury

as a tax avoidance transaction for purposes of section

6011.

2. A prohibited reportable transaction is:

a. Any confidential transaction within the meaning of

Regulations section 1.6011-4(b)(3), or

b. Any transaction with contractual protection within

the meaning of Regulations section 1.6011-4(b)

(4).

Instructions for Form 5330 (Rev. 12-2025)

Part II. Tax Due

Amended return. If you’re filing an amended Form 5330

and you paid taxes with your original return and those

taxes have the same due date as those previously

reported, check the box in item H and enter the tax

reported on your original return on line 18. If you file Form

5330 for a claim for refund or credit, show the amount of

overreported tax on line 20a. Otherwise, show the amount

of additional tax due on line 19 and include the payment

with the amended Form 5330.

Line 19. The IRS recommends paying electronically

whenever possible. Options to pay electronically are

included in the list below. Payments to U.S. tax must be

remitted to the IRS in U.S. dollars. Digital assets are not

accepted. Go to IRS.gov/Payments for information on how

to make a payment using any of the following options.

• IRS direct pay: Pay taxes from your bank account. It’s

free and secure, and no sign-in is required. You can

change or cancel within 2 days of scheduled

payments.

• Debit card, credit card, or digital wallet: Choose an

approved payment processor to pay online or by

phone.

• Electronic funds withdrawal: Schedule a payment

when filing your federal taxes using tax return

preparation software or through a tax professional.

• Electronic federal tax payments system (EFTPS): This

is the best option for businesses. Enrollment is

required.

• Check or money order: If you file Form 5330 on paper,

make your check or money order payable to the

“United States Treasury” for the full amount due.

Attach the payment to your return. Write your name,

identifying number, plan number, and “Form 5330,

Section ____” on your payment. File at the address

shown under Where To File, earlier.

• Cash: You may be able to pay your taxes with cash at

a participating retail store.

• Same-day wire: You may be able to do same-day wire

from your financial institution. Contact your financial

institution for availability, cost, and time frames.

Note: The IRS uses the latest encryption technology to

ensure that the electronic payments you make online, by

phone, or from a mobile devise using the IRS2Go app are

safe and secure. Paying electronically is quick and easy.

Line 20a. If line 20a is under $1, we will send a refund

only on written request.

If you have access to U.S. banking services, you should

use direct deposit for any refunds, whenever possible.

Direct deposit is available for this form. If there is an

overpayment when filing your return, complete Part II,

lines 20b, 20c, and 20d to input your direct deposit

information.

Tip: The safest and easiest way to receive a tax refund is

to e-file and choose direct deposit, which securely and

electronically transfers your refund directly into your

financial account. Direct deposit also avoids the possibility

that your check could be lost, stolen, destroyed, or

returned undeliverable to the IRS. Eight in 10 taxpayers

use direct deposit to receive their refunds. If you don’t

have a bank account, go to IRS.gov/DirectDeposit for

more information on where to find a bank or credit union

that can open an account online.

For purposes of section 4972, nondeductible

contributions for the employer’s current tax year are the

sum of:

Line 20b. The routing number must be nine digits. The

first two digits must be 01 through 12 or 21 through 32.

Ask your financial institution for the correct routing number

to enter on line 20b if:

• The routing number on a deposit slip is different from

the routing number on your checks,

• Your deposit is to a savings account that doesn’t allow

you to write checks, or

• Your checks state they are payable through a financial

institution different from the one at which you have

your checking account.

1. The excess (if any) of the employer’s contribution for

the tax year less the amount allowable as a deduction

under section 404 for that year; and

Line 20c. Check the appropriate box for the type of

account. Don’t check more than one box. You must check

the correct box to ensure your deposit is accepted.

Line 20d. The account number can be up to 17

characters (both numbers and letters). Include hyphens

but omit spaces and special symbols. Enter the number

from left to right and leave any unused boxes blank. Don’t

include the check number.

Filer’s signature. To reduce the possibility of

correspondence and penalties, please sign and date the

form. Also, enter a daytime phone number where you can

be reached.

Preparer’s signature. Anyone who prepares your return

and does not charge you should not sign your return. For

example, a regular full-time employee or your business

partner who prepares the return should not sign.

Generally, anyone who is paid to prepare the return

must sign the return in the space provided and fill in the

Paid Preparer’s Use Only area. See section 7701(a)(36)

(B) for exceptions.

In addition to signing and completing the required

information, the paid preparer must give a copy of the

completed return to the taxpayer.

Note: If Form 5330 is filed on paper, a paid preparer may

sign original or amended returns by rubber stamp,

mechanical device, or computer software program.

Schedule A. Tax on Nondeductible

Employer Contributions to Qualified

Employer Plans (Section 4972)

Section 4972. Section 4972 imposes an excise tax on

employers who make nondeductible contributions to their

qualified plans. The excise tax is equal to 10% of the

nondeductible contributions in the plan as of the end of

the employer’s tax year.

A “qualified employer plan” for purposes of this section

means any plan qualified under section 401(a), any

annuity plan qualified under section 403(a), and any

simplified employee pension plan qualified under section

408(k) or any simple retirement account under section

408(p). The term qualified plan does not include certain

governmental plans and certain plans maintained by

tax-exempt organizations.

2. The total amount of the employer’s contributions for

each preceding tax year that was not allowable as a

deduction under section 404 for such preceding year,

reduced by the sum of:

a. The portion of that amount available for return

under the applicable qualification rules and

actually returned to the employer prior to the close

of the current tax year; and

b. The portion of such amount that became

deductible for a preceding tax year or for the

current tax year.

Although pre-1987 nondeductible contributions are not

subject to this excise tax, they are taken into account to

determine the extent to which post-1986 contributions are

deductible. See section 4972 and Pub. 560, Retirement

Plans for Small Business, for details.

Defined benefit plans exception. For purposes of

determining the amount of nondeductible contributions

subject to the 10% excise tax, the employer may elect not

to include any contributions to a defined benefit plan

except, in the case of a multiemployer plan, to the extent

those contributions exceed the full-funding limitation (as

defined in section 431(c)(6)). This election applies to

terminated and ongoing plans. An employer making this

election cannot also benefit from the exceptions for

terminating plans and for certain contributions to defined

contribution plans under section 4972(c)(6). When

determining the amount of nondeductible contributions,

the deductible limits under section 404(a)(7) must be

applied first to contributions to defined contribution plans

and then to contributions to defined benefit plans.

Defined contribution plans exception. In

determining the amount of nondeductible contributions

subject to the 10% excise tax, do not include any of the

following.

• Employer contributions to one or more defined

contribution plans that are nondeductible solely

because of section 404(a)(7) that do not exceed the

matching contributions described in section 401(m)(4)

(A).

• Contributions to a SIMPLE 401(k) or a SIMPLE IRA

considered nondeductible because they are not made

in connection with the employer’s trade or business.

However, this provision pertaining to SIMPLEs does

not apply to contributions made on behalf of the

employer or the employer’s family.

For purposes of this exception, the combined plan

deduction limits are first applied to contributions to the

defined benefit plan and then to the defined contribution

plan.

Restorative payments to a defined contribution plan are

not considered nondeductible contributions if the

payments are made to restore some or all of the plan’s

losses due to an action (or a failure to act) that creates a

Instructions for Form 5330 (Rev. 12-2025)

reasonable risk of liability for breach of fiduciary duty.

Amounts paid in excess of the loss are not considered

restorative payments.

For these purposes, multiemployer plans are not taken

into consideration in applying the overall limit on

deductions where there is a combination of defined

benefit and defined contribution plans.

4975. This also applies to the tax on minimum funding

deficiencies under section 4971.

Disqualified person. A disqualified person is a person

who is any of the following.

Schedule B. Tax on Excess

Contributions to Section 403(b)(7)(A)

Custodial Accounts (Section 4973(a)

(3))

3. An employer, any of whose employees are covered by

the plan.

Section 4973(a) imposes a 6% excise tax on excess

contributions to section 403(b)(7)(A) custodial accounts at

the close of the tax year. The tax is paid by the individual

account holder.

Line 1. Enter total current year contributions, less any

rollover contributions described in section 403(b)(8) or

408(d)(3)(A).

Line 2. Enter the amount excludable under section

415(c) (limit on annual additions).

Tip: To determine the amount excludable for a specific

year, see Pub. 571, Tax-Sheltered Annuity Plans (403(b)

Plans), for that year.

The limit on annual additions under section 415(c)(1)

(A) is subject to cost-of-living adjustments as described in

section 415(d). The dollar limit for a calendar year, as

adjusted annually, is published during the fourth quarter of

the prior calendar year in the Internal Revenue Bulletin.

Schedule C. Tax on Prohibited

Transactions (Section 4975)

Section 4975. Section 4975 imposes an excise tax on a

disqualified person who engages in a prohibited

transaction with the plan.

Plan. For purposes of this section, the term “plan”

means any of the following.

• A trust described in section 401(a) that forms part of a

plan.

• A plan described in section 403(a) that is exempt from

tax under section 501(a).

• An individual retirement account described in section

408(a).

• An individual retirement annuity described in section

408(b).

• An Archer MSA described in section 220(d).

• A Coverdell education savings account described in

section 530.

• A Health Savings Account (HSA) described in section

223(d).

• A trust described in section 501(c)(22).

Note: For purposes of section 4975, the term “plan” does

not include a section 403(b) tax-sheltered annuity plan.

See section 4975(e).

Caution: If the IRS determined at any time that your plan

was a plan as defined above, it will always remain subject

to the excise tax on prohibited transactions under section

Instructions for Form 5330 (Rev. 12-2025)

1. A fiduciary.

2. A person providing services to the plan.

4. An employee organization, any of whose members

are covered by the plan.

5. A direct or indirect owner of 50% or more of:

a. The combined voting power of all classes of stock

entitled to vote, or the total value of shares of all

classes of stock of a corporation;

b. The capital interest or the profits interest of a

partnership; or

c. The beneficial interest of a trust or unincorporated

enterprise in (a), (b), or (c), which is an employer

or an employee organization described in (3) or (4)

above. A limited liability company should be

treated as a corporation or a partnership,

depending on how the organization is treated for

federal tax purposes.

6. A member of the family of any individual described in

(1), (2), (3), or (5). A member of a family is the

spouse, ancestor, lineal descendant, and any spouse

of a lineal descendant.

7. A corporation, partnership, or trust or estate of which

(or in which) any direct or indirect owner holds 50% or

more of the interest described in (5a), (5b), or (5c) of

such entity. For this purpose, the beneficial interest of

the trust or estate is owned, directly or indirectly, or

held by persons described in (1) through (5).

8. An officer, director (or an individual having powers or

responsibilities similar to those of officers or

directors), a 10% or more shareholder or highly

compensated employee (earning 10% or more of the

yearly wages of an employer) of a person described in

(3), (4), (5), or (7).

9. A 10% or more (in capital or profits) partner or joint

venturer of a person described in (3), (4), (5), or (7).

10. Any disqualified person, as described in (1) through

(9) above, who is a disqualified person with respect to

any plan to which a section 501(c)(22) trust applies,

that is permitted to make payments under section

4223 of the Employee Retirement Income Security

Act (ERISA).

Prohibited transaction. A prohibited transaction is

any direct or indirect:

1. Sale or exchange, or leasing of any property between

a plan and a disqualified person; or a transfer of real

or personal property by a disqualified person to a plan

where the property is subject to a mortgage or similar

lien placed on the property by the disqualified person

within 10 years prior to the transfer, or the property

transferred is subject to a mortgage or similar lien

which the plan assumes;

2. Lending of money or other extension of credit

between a plan and a disqualified person;

3. Furnishing of goods, services, or facilities between a

plan and a disqualified person;

4. Transfer to, or use by or for the benefit of, a

disqualified person of income or assets of a plan;

5. Act by a disqualified person who is a fiduciary dealing

with the income or assets of a plan in the disqualified

person’s own interest or account; or

6. Receipt of any consideration for a disqualified

person’s own personal account by any disqualified

person who is a fiduciary from any party dealing with

the plan connected with a transaction involving the

income or assets of the plan.

Exemptions. See sections 4975(d), 4975(f)(6)(B)(ii),

and 4975(f)(6)(B)(iii) for specific exemptions to prohibited

transactions. Also, see section 4975(c)(2) for certain other

transactions or classes of transactions that may become

exempt.

Line 1. Check the box that best characterizes the

prohibited transaction for which an excise tax is being

paid. A prohibited transaction is discrete unless it is of an

ongoing nature. Transactions involving the use of money

(loans, etc.) or other property (rent, etc.) are of an ongoing

nature and will be treated as a new prohibited transaction

on the first day of each succeeding tax year or part of a

tax year that is within the taxable period.

Line 2, column (b). List the date of all prohibited

transactions that took place in connection with a particular

plan during the current tax year. Also, list the date of all

prohibited transactions that took place in prior years

unless either the transaction was corrected in a prior tax

year or the section 4975(a) tax was assessed in the prior

tax year. A disqualified person who engages in a

prohibited transaction must file a separate Form 5330 to

report the excise tax due under section 4975 for each tax

year.

Line 2, columns (d) and (e). The “amount involved in a

prohibited transaction” means the greater of the amount of

money and the fair market value (FMV) of the other

property given, or the amount of money and the FMV of

the other property received. However, for services

described in sections 4975(d)(2) and (10), the amount

involved only applies to excess compensation. For

purposes of section 4975(a), FMV must be determined as

of the date on which the prohibited transaction occurs. If

the use of money or other property is involved, the amount

involved is the greater of the amount paid for the use or

the FMV of the use for the period for which the money or

other property is used. In addition, transactions involving

the use of money or other property will be treated as

giving rise to a prohibited transaction occurring on the

date of the actual transaction, plus a new prohibited

transaction on the first day of each succeeding tax year or

portion of a succeeding tax year which is within the

taxable period. The “taxable period” for this purpose is the

period of time beginning with the date of the prohibited

transaction and ending with the earliest of:

1. The date the correction is completed,

2. The date of the mailing of a notice of deficiency, or

3. The date on which the tax under section 4975(a) is

assessed.

See the instructions for Schedule C, under Additional

tax for failure to correct the prohibited transaction (section

4975(b)), for the definition of correction.

Caution: Temporary Regulations section 141.4975-13

states that, until final regulations are written under section

4975(f), the definitions of amount involved and correction

found in Regulations section 53.4941(e)-1 will apply.

Failure to transmit participant contributions. For

purposes of calculating the excise tax on a prohibited

transaction where there is a failure to transmit participant

contributions (elective deferrals) or amounts that would

have otherwise been payable to the participant in cash,

the amount involved is based on interest on those elective

deferrals. See Rev. Rul. 2006-38.

Column (e). The initial tax on a prohibited transaction

is 15% of the amount involved in each prohibited

transaction for each year or part of a year in the taxable

period. Multiply the amount in column (d) by 15%.

Example. The example of a prohibited transaction

below does not cover all types of prohibited transactions.

For more examples, see Regulations section

53.4941(e)-1(b)(4).

A disqualified person borrows money from a plan in a

prohibited transaction under section 4975. The FMV of the

use of the money and the actual interest on the loan is

$1,000 per month (the actual interest is paid in this

example). The loan was made on July 1, 2024 (date of

transaction), and repaid on December 31, 2025 (date of

correction). The disqualified person’s tax year is the

calendar year. On July 31, 2026, the disqualified person

files a delinquent Form 5330 for the 2024 plan year (which

in this case is the calendar year) and a timely Form 5330

for the 2025 plan year (which in this case is the calendar

year). No notice of deficiency with respect to the tax

imposed by section 4975(a) has been mailed to the

disqualified person and no assessment of such excise tax

has been made by the IRS before the time the disqualified

person filed the Forms 5330.

Each prohibited transaction has its own separate

taxable period that begins on the date the prohibited

transaction occurred or is deemed to occur and ends on

the date of the correction. The taxable period that begins

on the date the loan occurs runs from July 1, 2024 (date of

loan), through December 31, 2025 (date of correction).

When a loan is a prohibited transaction, the loan is treated

as giving rise to a prohibited transaction on the date the

transaction occurs, and an additional prohibited

transaction on the first day of each succeeding tax year

(or portion of a tax year) within the taxable period that

begins on the date the loan occurs. Therefore, in this

example, there are two prohibited transactions, the first

occurring on July 1, 2024, and ending on December 31,

Instructions for Form 5330 (Rev. 12-2025)

Figure 1. Example for the Calendar 2024 Plan Year Used When Filing for the 2024 Tax Year

Schedule C. Tax on Prohibited Transactions (Section 4975) (see instructions) Reported by the last day of the

7th month after the end of the tax year of the employer (or other person who must file the return)

(a)

Transaction

number

(b) Date of

transaction

(see

instructions)

(i)

7-1-24

(d) Amount involved in prohibited

transaction (see instructions)

(e) Initial tax on prohibited

transaction (multiply each

transaction in column (d) by the

appropriate rate (see instructions))

Loan

$6,000

$900

(ii)

(iii)

3 Add amounts in column (e); enter here and on Part I, line 3a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$900

Figure 2. Example for the Calendar 2025 Plan Year Used When Filing for the 2025 Tax Year

Schedule C. Tax on Prohibited Transactions (Section 4975) (see instructions) Reported by the last day of the 7th

month after the end of the tax year of the employer (or other person who must file the return)

(a)

Transaction

number

(b) Date of

transaction

(see

instructions)

(i)

7-1-24

Loan

$6,000

$900

(ii)

1-1-25

Loan

$12,000

$1,800

(d) Amount involved in prohibited

transaction (see instructions)

(e) Initial tax on prohibited

transaction (multiply each

transaction in column (d) by the

appropriate rate (see instructions))

(iii)

3 Add amounts in column (e); enter here and on Part I, line 3a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2024, and the second occurring on January 1, 2025, and

ending on December 31, 2025.

Section 4975(a) imposes a 15% excise tax on the

amount involved for each tax year or part thereof in the

taxable period of each prohibited transaction.

The Form 5330 for the year ending December 31,

2024. The amount involved to be reported in Form 5330,

Schedule C, line 2, column (d), for the 2024 plan year, is

$6,000 (6 months x $1,000). The tax due is $900 ($6,000

x 15%). (See Figure 1 above.) (Any interest and penalties

imposed for the delinquent filing of Form 5330 and the

delinquent payment of the excise tax for 2024 will be billed

separately to the disqualified person.)

The Form 5330 for the year ending December 31,

2025. The excise tax to be reported on the 2025 Form

5330 would include both the prohibited transaction of July

1, 2024, with an amount involved of $6,000, resulting in a

tax due of $900 ($6,000 x 15%), and the second

prohibited transaction of January 1, 2025, with an amount

involved of $12,000 (12 months x $1,000), resulting in a

tax due of $1,800 ($12,000 x 15%). (See Figure 2, above.)

The taxable period for the second prohibited transaction

runs from January 1, 2025, through December 31, 2025

(date of correction). Because there are two prohibited

transactions with taxable periods running during 2025, the

section 4975(a) tax is due for the 2025 tax year for both

prohibited transactions.

Tip: When a loan from a qualified plan that is a prohibited

transaction spans successive tax years, constituting

multiple prohibited transactions, and during those years

the first tier prohibited transaction excise tax rate changes,

Instructions for Form 5330 (Rev. 12-2025)

$2,700

the first tier excise tax liability for each prohibited

transaction is the sum of the products resulting from

multiplying the amount involved for each year in the

taxable period for that prohibited transaction by the excise

tax rate in effect at the beginning of that taxable period.

For more information, see Rev. Rul. 2002-43, 2002-28

I.R.B. 85 at IRS.gov/pub/irs-irbs/irb02-28.pdf. Unlike the

previous example, the example in Rev. Rul. 2002-43

contains unpaid interest.

Additional tax for failure to correct the prohibited

transaction (section 4975(b)). To avoid liability for

additional taxes and penalties, and in some cases further

initial taxes, a correction must be made within the taxable

period. The term “correction” is defined as undoing the

prohibited transaction to the extent possible, but in any

case placing the plan in a financial position not worse than

that in which it would be if the disqualified person were

acting under the highest fiduciary standards.

If the prohibited transaction is not corrected within the

taxable period, an additional tax equal to 100% of the

amount involved will be imposed under section 4975(b).

Any disqualified person who participated in the prohibited

transaction (other than a fiduciary acting only as such)

must pay this tax imposed by section 4975(b). Report the

additional tax on Part I, Section A, line 3b.

Line 4. Check “No” if there has not been a correction of

all of the prohibited transactions by the end of the tax year

for which this Form 5330 is being filed. Attach a statement

including the item number from line 2a and description

indicating when the correction will be made.

Line 5. If more than one disqualified person participated

in the same prohibited transaction, list on this schedule

the name, address, and EIN or SSN of each disqualified

person, other than the disqualified person who files this

return.

For all transactions, complete columns (a), (b), and (c).

If the transaction has been corrected, complete columns

(a) through (e). If additional space is needed, you may

attach a statement fully explaining the correction and

identifying persons involved in the prohibited transaction.

Prohibited transactions and investment advice. The

prohibited transaction rules of section 4975(c) will not

apply to any transaction in connection with investment

advice if the investment advice provided by a fiduciary

adviser is provided under an eligible investment advice

arrangement.

For this purpose, an eligible investment advice

arrangement is an arrangement that either:

• Provides that any fees, including any commission or

other compensation, received by the fiduciary adviser

for investment advice or with respect to the sale,

holding, or acquisition of any security or other property

for the investment of plan assets do not vary

depending on the basis of any investment option

selected; or

• Uses a computer model under an investment advice

program, described in section 4975(f)(8)(C), in

connection with investment advice provided by a

fiduciary adviser to a participant or beneficiary.

Additionally, the eligible investment advice arrangement

must meet the provisions of sections 4975(f)(8)(D), (E),

(F), (G), (H), and (I).

For purposes of the statutory exemption on investment

advice, a fiduciary adviser is defined in section 4975(f)(8)

(J).

Correcting certain prohibited transactions.

Generally, if a disqualified person enters into a direct or

indirect prohibited transaction, listed in (1) through (4)

below, in connection with the acquisition, holding, or

disposition of certain securities or commodities, and the

transaction is corrected within the correction period, it will

not be treated as a prohibited transaction and no tax will

be assessed.

1. Sale or exchange, or leasing of any property between

a plan and a disqualified person.

2. Lending of money or other extension of credit

between a plan and a disqualified person.

3. Furnishing of goods, services, or facilities between a

plan and a disqualified person.

4. Transfer to, or use by or for the benefit of, a

disqualified person of income or assets of a plan.

However, if, at the time the transaction was entered

into, the disqualified person knew or had reason to know

that the transaction was prohibited, the transaction would

be subject to the tax on prohibited transactions.

For purposes of section 4975(d)(23), the term “correct”

means to:

• Undo the transaction to the extent possible and in all

cases to make good to the plan or affected account

any losses resulting from the transaction, and

• Restore to the plan or affected account any profits

made through the use of assets of the plan.

The correction period is the 14-day period beginning on

the date on which the disqualified person discovers or

reasonably should have discovered that the transaction

constitutes a prohibited transaction.

Schedule D. Tax on Failure To Meet

Minimum Funding Standards (Section

4971(a))

In the case of a single-employer plan, section 4971(a)

imposes a 10% tax on the aggregate unpaid minimum

required contributions for all plan years remaining unpaid

as of the end of any plan year. In the case of a

multiemployer plan, section 4971(a) imposes a 5% tax on

the amount of the accumulated funding deficiency

determined as of the end of the plan year.

If a plan fails to meet the funding requirements under

section 412, the employer and all controlled group

members will be subject to excise taxes under sections

4971(a) and (b).

Except in the case of a multiemployer plan, all

members of a controlled group are jointly and severally

liable for this tax. A “controlled group” in this case means

a controlled group of corporations under section 414(b), a

group of trades or businesses under common control

under section 414(c), an affiliated service group under

section 414(m), and any other group treated as a single

employer under section 414(o).

Caution: If the IRS determined at any time that your plan

was a plan as defined on Schedule C, it will always remain

subject to the excise tax on failure to meet minimum

funding standards.

Line 1. Enter the amount (if any) of the aggregate unpaid

minimum required contributions (or in the case of a

multiemployer plan, an accumulated funding deficiency as

defined in section 431(a) (or section 418B if a

multiemployer plan in reorganization)).

Line 2. Multiply line 1 by the applicable tax rate shown

below and enter the result.

• 10% for plans other than multiemployer plans.

• 5% for all multiemployer plans.

Additional tax for failure to correct. For

single-employer plans, when an initial tax is imposed

under section 4971(a) on any unpaid minimum required

contribution and the unpaid minimum required

contribution remains unpaid as of the close of the taxable

period, an additional tax of 100% of the amount that

remains unpaid is imposed under section 4971(b).

For multiemployer plans, when an initial tax is imposed

under section 4971(a)(2) on an accumulated funding

deficiency and the accumulated funding deficiency is not

corrected within the taxable period, an additional tax equal

to 100% of the accumulated funding deficiency, to the

extent not corrected, is imposed under section 4971(b).

For this purpose, the taxable period is the period

beginning with the end of the plan year where there is an

Instructions for Form 5330 (Rev. 12-2025)

unpaid minimum required contribution or an accumulated

funding deficiency and ending on the earlier of:

• The date the notice of deficiency for the section

4971(a) excise tax is mailed, or

• The date the section 4971(a) excise tax is assessed.

Report the tax for failure to correct the unpaid minimum

required contribution or the accumulated funding

deficiency on Part I, Section B, line 8b.

Schedule E. Tax on Failure To Pay

Liquidity Shortfall (Section 4971(f)(1))

If your plan has a liquidity shortfall for which an excise tax

under section 4971(f)(1) is imposed for any quarter of the

plan year, complete lines 1 through 4.

Line 1. Enter the amount of the liquidity shortfall(s) for

each quarter of the plan year.

Line 2. Enter the amount of any contributions made to the

plan by the due date of the required quarterly

installment(s) that partially corrected the liquidity

shortfall(s) reported on line 1.

Line 3. Enter the net amount of the liquidity shortfall.

Subtract line 2 from line 1.

Additional tax for failure to correct liquidity

shortfall. If the plan has a liquidity shortfall as of the

close of any quarter and as of the close of the following 4

quarters, an additional tax will be imposed under section

4971(f)(2) equal to the amount on which tax was imposed

by section 4971(f)(1) for such quarter. Report the

additional tax on Part I, Section B, line 9b.

Schedule F. Tax on Multiemployer

Plans in Endangered or Critical

Status (Sections 4971(g)(3) and

4971(g)(4))

For years beginning after 2007, section 4971(g) imposes

an excise tax on employers who contribute to

multiemployer plans for failure to comply with a funding

improvement or rehabilitation plan, failure to meet

requirements for plans in endangered or critical status, or

failure to adopt a rehabilitation plan. See Line 10a, earlier.

Line 1. Under section 4971(g)(3), a multiemployer plan

that is in seriously endangered status when it fails to meet

its applicable benchmarks by the end of the funding

improvement period will be treated as having an

accumulated funding deficiency for the last plan year in

such period and each succeeding year until the funding

benchmarks are met.

Similarly, a plan that is in critical status and either fails

to meet the requirements of section 432 by the end of the

rehabilitation period, or has received certification under

section 432(b)(3)(A)(ii) for 3 consecutive plan years that

the plan is not making the scheduled progress in meeting

its requirements under the rehabilitation plan, will be

treated as having an accumulated funding deficiency for

the last plan year in such period and each succeeding

plan year until the funding requirements are met.

In both cases, the accumulated funding deficiency is an

amount equal to the greater of the amount of the

contributions necessary to meet the benchmarks or

Instructions for Form 5330 (Rev. 12-2025)

requirements, or the amount of the accumulated funding

deficiency without regard to this rule. The existence of an

accumulated funding deficiency triggers the initial 5%

excise tax under section 4971(a).

A plan is in endangered status if either of the following

occurs.

• The plan’s actuary timely certifies that the plan is not

in critical status for that plan year and at the beginning

of that plan year the plan’s funded percentage for the

plan year is less than 80%.

• The plan has an accumulated funding deficiency for

the plan year or is projected to have such an

accumulated funding deficiency for any of the 6

succeeding plan years, taking into account any

extension of amortization periods under section

431(d).

A plan is in critical status if it is determined by the

multiemployer plan’s actuary that one of the four formulas

in section 432(b)(2) is met for the applicable plan year.

All or part of this excise tax may be waived due to

reasonable cause.

Line 2. Under section 4971(g)(4), the plan sponsor of a

multiemployer plan in critical status, as defined above, will

be liable for an excise tax for failure to adopt a

rehabilitation plan within the time prescribed under section

432. The tax is equal to the greater of:

• The amount of tax imposed under section 4971(a)(2);

• An amount equal to $1,100, multiplied by the number

of days in the tax year which are included in the period

that begins on the first day following the close of the

240-day period that a multiemployer plan has to adopt

a rehabilitation plan once it has entered critical status

and that ends on the day the rehabilitation plan is

adopted. Section 432(e)(1)(A) allows the plan sponsor

to adopt a rehabilitation plan within the 240-day period

following the required date for the actuarial

certification of critical status in section 432(b)(3)(A).

Liability for this tax is imposed on each plan sponsor.

This excise tax may not be waived.

Caution: Follow the instructions as defined above for

counting days and completing line 2b.

Complete line 2b as instructed below. Enter the number

of days during the tax year that are included in the period

beginning on the first day following the close of the

240-day period and ending on the day the rehabilitation

plan is adopted.

Schedule G. Tax on Excess Fringe

Benefits (Section 4977)

If you made an election to be taxed under section 4977 to

continue your nontaxable fringe benefit policy that was in

existence on or after January 1, 1984, check “Yes” on

line 1 and complete lines 2 through 4.

Line 3. Excess fringe benefits are calculated by

subtracting 1% of the aggregate compensation paid by

you to your employees during the calendar year that was

includible in their gross income from the aggregate value

of the nontaxable fringe benefits under sections 132(a)(1)

and (2).

Schedule H. Tax on Excess

Contributions to Certain Plans

(Section 4979)

Any employer who maintains a plan described in section

401(a), 403(a), 403(b), 408(k), or 501(c)(18) may be

subject to an excise tax on excess aggregate

contributions made on behalf of highly compensated

employees. The employer may also be subject to an

excise tax on excess contributions to a cash or deferred

arrangement connected with the plan.

The tax is on the excess contributions and the excess

aggregate contributions made to or on behalf of the highly

compensated employees as defined in section 414(q).

Generally, a highly compensated employee is an

employee who:

1. Was a 5% owner at any time during the year or the

preceding year; or

2. For the preceding year, had compensation from the

employer in excess of a dollar amount for the year

($160,000 for 2025 or 2026) and, if the employer so

elects, was in the top paid group for the preceding

year.

An employee is in the top-paid group for any year if the

employee is in the group consisting of the top 20% of

employees when ranked on the basis of compensation

paid. An employee (who is not a 5% owner) who has

compensation in excess of $160,000 is not a highly

compensated employee if the employer elects the

top-paid group limitation and the employee is not a

member of the top-paid group.

The excess contributions subject to the section 4979

excise tax are equal to the amount by which employer

contributions actually paid over to the trust exceed the

employer contributions that could have been made

without violating the special nondiscrimination

requirements of section 401(k)(3) or section 408(k)(6) in

the instance of certain SEPs.

The excess aggregate contributions subject to the

section 4979 excise tax are equal to the amount by which

the aggregate matching contributions of the employer and

the employee contributions (and any qualified nonelective

contribution or elective contribution taken into account in

computing the contribution percentage under section

401(m)) actually made on behalf of the highly

compensated employees for each plan year exceed the

maximum amount of contributions permitted in the

contribution percentage computation under section

401(m)(2)(A).

However, there is no excise tax liability if the excess

contributions or the excess aggregate contributions and

any income earned on the contributions are distributed

(or, if forfeitable, forfeited) to the participants for whom the

excess contributions were made within 21/2 months after

the end of the plan year.

Schedule I. Tax on Reversion of

Qualified Plan Assets to an Employer

(Section 4980)

Section 4980 imposes an excise tax on an employer

reversion of qualified plan assets to an employer.

Generally, the tax is 20% of the amount of the employer

reversion. The excise tax rate increases to 50% if the

employer does not establish or maintain a qualified

replacement plan following the plan termination or provide

certain pro-rata benefit increases in connection with the

plan termination. See section 4980(d)(1)(A) or (B) for

more information.

An employer reversion is the amount of cash and the

FMV of property received, directly or indirectly, by an

employer from a qualified plan. For exceptions to this

definition, see section 4980(c)(2)(B) and section 4980(c)

(3).

A qualified plan is:

• Any plan meeting the requirements of section 401(a)

or 403(a), other than a plan maintained by an

employer if that employer has at all times been exempt

from federal income tax; or

• A governmental plan within the meaning of section

414(d).

Terminated defined benefit plan. If a defined benefit

plan is terminated, and an amount in excess of 25% of the

maximum amount otherwise available for reversion is

transferred from the terminating defined benefit plan to a

defined contribution plan, the amount transferred is not

treated as an employer reversion for purposes of section

4980. However, the amount the employer receives is

subject to the 20% excise tax. For additional information,

see Rev. Rul. 2003-85, 2003-32 I.R.B. 291 at IRS.gov/irb/

2003-32_IRB#RR-2003-85.

Lines 1 through 4. Enter the date of reversion on line 1.

Enter the reversion amount on line 2a and the applicable

excise tax rate on line 2b. If you use a tax percentage

other than 50% on line 2b, explain on line 4 why you

qualify to use a rate other than 50%.

Schedule J. Tax on Failure To Provide

Notice of Significant Reduction in

Future Accruals (Section 4980F)

Section 204(h) notice. Section 4980F imposes an

excise tax on an employer (or, in the case of a

multiemployer plan, the plan) for failure to give section

204(h) notice of plan amendments that provide for a

significant reduction in the rate of future benefit accrual or

the elimination or significant reduction of an early

retirement benefit or retirement-type subsidy. The tax is

$100 per day per each applicable individual and each

employee organization representing participants who are

applicable individuals for each day of the noncompliance

period. This notice is called a “section 204(h) notice”

because section 204(h) of ERISA has parallel notice

requirements.

An applicable individual is a participant in the plan, or

an alternate payee of a participant under a qualified

domestic relations order, whose rate of future benefit

Instructions for Form 5330 (Rev. 12-2025)

accrual (or early retirement benefit or retirement-type

subsidy) under the plan may reasonably be expected to

be significantly reduced by a plan amendment. (For plan

years beginning after December 31, 2007, the

requirement to give 204(h) notice was extended to an

employer who has an obligation to contribute to a

multiemployer plan.)

Whether a participant, alternate payee, or an employer

(as described in the above paragraph) is an applicable

individual is determined on a typical business day that is

reasonably approximate to the time the section 204(h)

notice is provided (or on the latest date for providing

section 204(h) notice, if earlier), based on all relevant facts

and circumstances. For more information in determining

whether an individual is a participant or alternate payee,

see Regulations section 54.4980F-1, Q&A 10.

The noncompliance period is the period beginning on

the date the failure first occurs and ending on the date the

notice of failure is provided or the failure is corrected.

Exceptions. The section 4980F excise tax will not be

imposed for a failure during any period in which the

following occurs.

1. Any person subject to liability for the tax did not know

that the failure existed and exercised reasonable

diligence to meet the notice requirement. A person is

considered to have exercised reasonable diligence

but did not know the failure existed only if:

a. The responsible person exercised reasonable

diligence in attempting to deliver section 204(h)

notice to applicable individuals by the latest date

permitted; or

b. At the latest date permitted for delivery of section

204(h) notice, the person reasonably believed that

section 204(h) notice was actually delivered to

each applicable individual by that date.

2. Any person subject to liability for the tax exercised

reasonable diligence to meet the notice requirement

and corrects the failure within 30 days after the

employer (or other person responsible for the tax)

knew, or exercising reasonable diligence would have

known, that the failure existed.

Example. There are 1,000 AIs. The plan administrator

fails to give section 204(h) notice to 100 AIs for 60 days,

and to 50 of those AIs for an additional 30 days. In this

case, there are 7,500 failures ((100 AIs x 60 days) + (50

AIs x 30 days) = 7,500).

Schedule K. Tax on Prohibited Tax

Shelter Transactions (Section 4965)

Section 4965 provides that an entity manager of a

tax-exempt organization may be subject to an excise tax

on prohibited tax shelter transactions under section 4965.

In the case of a plan entity, an entity manager is any

person who approves or otherwise causes the tax-exempt

entity to be a party to a prohibited tax shelter transaction.

The excise tax is $20,000 and is assessed for each

approval or other act causing the organization to be a

party to the prohibited tax shelter transaction.

Schedule L. Tax on Failure of a

Cooperative and Small Employer

Charity (CSEC) Plan Sponsor To

Adopt Funding Restoration Plan

(Section 4971(h))

A CSEC plan is:

• A defined benefit plan (other than a multiemployer

plan) including an eligible cooperative plan (as defined

in section 104 of the PPA ‘06);

• A plan that, as of June 25, 2010, was maintained by

more than one section 501(c)(3) organization;

• A plan that, as of June 25, 2010, was maintained by a

single employer that was a 501(c)(3) organization

chartered under Part B, Subtitle II, Title 36 of the

U.S.C., whose primary exempt purpose is to provide

services with respect to children, and which has

employees in at least 40 states; or

• Any plan that, as of January 1, 2000, was maintained

by an employer that is a 501(c)(3) organization, has

been in existence since at least 1938, conducts

medical research directly or indirectly through grant

making, and has a primary exempt purpose to provide

services with respect to mothers and children (section

414(y)(1), amended by section 3609 of the

Coronavirus Aid, Relief, and Economic Security

(CARES) Act (P.L. 116-136)).

Generally, section 204(h) notice must be provided at

least 45 days before the effective date of the section

204(h) amendment. For exceptions to this rule, see

Regulations section 54.4980F-1, Q&A 9.

If the person subject to liability for the excise tax

exercised reasonable diligence to meet the notice

requirement, the total excise tax imposed during a tax year

of the employer will not exceed $500,000. Furthermore, in

the case of a failure due to reasonable cause and not to

willful neglect, the Secretary of the Treasury is authorized

to waive the excise tax to the extent that the payment of

the tax would be excessive relative to the failure involved.

See Rev. Proc. 2013-4, 2013-1 I.R.B. 126, as revised by

subsequent documents, available at IRS.gov/irb/

2013-01_IRB#RP-2013-4, for procedures to follow in

applying for a waiver of part or all of the excise tax due to

reasonable cause.

A CSEC plan is treated as being in funding restoration

status for a plan year if the plan’s funded percentage as of

the beginning of such plan year is less than 80%. Funded

percentage means the ratio that the value of plan assets

bears to the plan’s funding liability.

Line 4. A failure occurs on any day that any applicable

individual (AI) is not provided section 204(h) notice.

Line 1. Under section 4971(h)(2), the excise tax amount

with respect to any CSEC plan sponsor for any tax year

Instructions for Form 5330 (Rev. 12-2025)

Section 433(j)(3) requires a CSEC plan sponsor to

establish a written funding restoration plan within 180

days of the receipt by the plan sponsor of a certification

from the plan actuary that the plan is in funding restoration

status for a plan year. Section 4971(h) imposes an excise

tax on the CSEC plan sponsor for the plan in funding

restoration status for the failure to adopt a funding

restoration plan within the time prescribed under section

433(j)(3).

should be the amount equal to $100 multiplied by the

number of days during the tax year that are included in the

period beginning on the day following the close of the

180-day period described in section 433(j)(3) and ending

on the day on which the funding restoration plan is

adopted.

Line 2. Calculate the excise tax amount by multiplying

days entered on line 1 by $100. Enter the excise tax

amount on line 2 and on Part I, line 10d.

All or part of this excise tax may be waived if the IRS

determines that a failure is due to reasonable cause and

not to willful neglect.

Privacy Act and Paperwork Reduction Act Notice. We

ask for the information on this form to carry out the Internal

Revenue laws of the United States. This form is required

to be filed under sections 4965, 4971, 4972, 4973, 4975,

4976, 4977, 4978, 4979, 4979A, 4980, and 4980F of the

Internal Revenue Code. Section 6109 requires you to

provide your identifying number. If you fail to provide this

information in a timely manner, you may be liable for

penalties and interest. Routine uses of this information

include giving it to the Department of Justice for civil and

criminal litigation, and to cities, states, and the District of

Columbia for use in administering their tax laws. We may

also disclose this information to federal and state or local

agencies to enforce federal nontax criminal laws and to

combat terrorism.

You are not required to provide the information

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

control number. Books or records relating to a form or its

instructions must be retained as long as their contents

may become material in the administration of any Internal

Revenue law. Generally, tax returns and return information

are confidential, as required by section 6103.

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

average time is:

Recordkeeping . . . . . . . . . . . . . . . . . . . . . . 30 hr., 22 min.

Learning about the law or the form. . . . . . . 15 hr., 45 min.

Preparing and sending the form to the

IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 hr., 08 min.

If you have comments concerning the accuracy of

these time estimates or suggestions for making this form

simpler, we would be happy to hear from you. You can

send us comments from IRS.gov/FormsComments. Or

you can write to the Internal Revenue Service, Tax Forms

and Publications Division, 1111 Constitution Ave. NW,

IR-6526, Washington, DC 20224. Do not send Form 5330

to this address. Instead, see Where To File, earlier.

Instructions for Form 5330 (Rev. 12-2025)

Index

Amended return 4, 7

Amount involved 6

Claim for refund 4

Disqualified benefit, funded

welfare plans 5

Disqualified person 11

Due dates 3

Eligible investment advice

arrangement 12

Employer reversion 14

Entity manager 7

ESOP 6

Prohibited allocations 5

ESOP dispositions 5

Excess contributions:

403(b)(7) plans 9

Section 4979 14

Excise tax due dates 3, 5

Extension 2

Form 5558 2

Funded welfare plans 5

How to file 3

Interest 4

Investment advice 12

Late filing 4

Interest 4

Penalty 4

Late payment 4

Liquidity shortfall:

Additional tax 13

Listed transaction 7

Minimum funding standards,

failure 12

Nonallocation period 6

Nondeductible employer

contributions 8

Exception, defined benefit plan 8

Exception, defined contribution

plan 8

Nondeductible contributions 8

Qualified plan 8

Notice of significant reduction in

future accruals 14

Applicable individual 14

Payment of taxes 7

Penalty 4

Late payment 4

Private delivery services 4

Prohibited allocation:

Disqualified person 6

ESOP 5, 6

Nonallocation period 6

Synthetic equity 6

Worker-owned cooperative 6

Prohibited reportable

transaction 7

Prohibited tax shelter

transaction 7

Entity manager 7

Prohibited transaction 9

Correcting 12

Correction period 12

Definition 9

Disqualified person 9

Exemptions 10

Failure to correct 11

Investment advice 12

Purpose of form 1

Qualified ESOP securities 5

Reversion of qualified plan

assets 14

Qualified plan 14

Terminated defined benefit

plan 14

Section 403(b) plan 9

Section 4965 7, 15

Section 4971(a) 12

Section 4971(b) 12

Section 4971(f) 13

Section 4971(g) 13

Section 4971(g)(2) 6

Section 4971(g)(3) 13

Section 4971(g)(4) 13

Section 4971(h) 15

Section 4972 8

Section 4973(a)(3) 9

Section 4975 9

Section 4976 5

Section 4977 13

Section 4979 14

Section 4979A 5

Section 4980 14

Section 4980F 14

Summary of taxes due 5

Synthetic equity 6

Amount involved 6

Table of due dates 3

When to file 2

Where to file 4

Who must file 1

Worker-owned cooperative 6

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.