Fidelity Bond for Tax-exempt organization.

[katieinny]

I have a tax-exempt employer setting up a qualified plan. Does the fact that they are a non-profit organization exempt them from the fidelity bond requirement?

[QDROphile]

You should not put the organization in a position to need the fildelity bond for itself. I know you did not ask that question, but take heed.

[katieinny]

I lost you. What are you trying to tell me?

[QDROphile]

Tell me who you think is supposed to be bonded.

[katieinny]

I'm talking about the requirement that a plan needs a fidelity bond covering at least 10% of the assets in case of fraud on the part of one of the plan's fiduciaries. I haven't found anything that exempts my non-profit client from that requirement, so I'm going to tell them they need to get the bond.

[QDROphile]

The plan needs the bond, but not for the organization itself. The plan should be designed so that the organization is not a fiduciary. My point is that the organization is not bonded.