Bonding

[Earl]

Under teh new bonding rules, if non-qualifying assets exceed 5% of the Trust and are in excess of $500,000 (actually over $1,000,000) does the maximum bonding requirement of $500,000 cap the bond or is a $1,000,000 bond required?

Is there a problem getting this issued by a carrier since there was/is this statutory maximum.

Thanks -

[Blinky the 3-eyed Fish]

The $500,000 cap does not apply for purposes of satisfying the bonding requirements to avoid a small plan audit. I have found that more of the insurance carriers are adjusting to the new requirements, although they were, and some still are, slow to do so.