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I have a client who has a 100,000 fidelity bond with ERISA inflation guard. Does anyone know what this means? The trust assets are more than $1,000,000. Should I put $100,000 in Sch. I as the value of the bond?

Posted

It means that as the assets rise the bond is guaranteed by the insurance company to meet the requirements of ERISA. Therefore, I would put an amount that meets those requirements on the Sch I (i.e. 10% of the assets).

Caution though, with the new small plan audit requirements, it may not meet that need.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

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