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

[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]

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!

[Surety Queen]

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.