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  1. Join Date
    Mar 2008
    Posts
    1

    Fidelity bond required for a retirement plan that has only one participant? A profit-

    If a retirement plan has only participant (a retirement plan such as a money purchase plan or a profit-sharing plan) is a fidelity bond still required? I know that doctors, lawyers, etc. often start retirement plans in this manner simply so that the money will reside in a trust, safe from malpractice lawsuits. Is a fidelity bond still required?

  2. Join Date
    Oct 2007
    Posts
    401

    Fidelity Bond Required..

    Quote Originally Posted by Enda80
    If a retirement plan has only participant (a retirement plan such as a money purchase plan or a profit-sharing plan) is a fidelity bond still required? I know that doctors, lawyers, etc. often start retirement plans in this manner simply so that the money will reside in a trust, safe from malpractice lawsuits. Is a fidelity bond still required?
    A fidelity bond would either be an Employee Dishonesty Bond or a Janitorial Service Bond. This would protect a business owner from employee theft.

    If you're looking for profit-sharing, etc, you may be looking for an Erisa Bond. This type of bond would be a Federal Government requirement for company financial plans.

    Hope this helps!

  3. Join Date
    Oct 2007
    Posts
    558

    Fidelity Bonds

    Quote Originally Posted by Enda80
    If a retirement plan has only participant (a retirement plan such as a money purchase plan or a profit-sharing plan) is a fidelity bond still required? I know that doctors, lawyers, etc. often start retirement plans in this manner simply so that the money will reside in a trust, safe from malpractice lawsuits. Is a fidelity bond still required?
    Bond Magician is right - the bond required in this situation would be an Erisa Bond, which is sometimes considered a kind of fidelity bond. The Erisa bond is a federal requirement to protect the funds within a retirement plan. It's best to discuss the specific requirements for your plan with your accountant.

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