No fidelity bond = No exemption?

[Guest MarkN]

The third condition of the exemption from annual examinations by an IQPA states that the administrator must make available for examination, at the participants request, copies of each financial institutions statements and evidence of any required bond.

I interpret this to mean that if a Plan does not have a fidelity bond (even though they have been advised to purchase one many times) they cannot claim the exemption from an IQPA examination on line 4k of Schedule I because they would not be able to furnish proof of a bond that doesn't exist. Others in my office disagree. Wanted to see what others thought about this.

[pmacduff]

I think that the Fidelity Bond refered to as part of the IQPA is only when there are "non-qualifying" assets in the Plan. (Not to say that the plan should not have a Fidelity Bond, but the exemption from the IQPA in that question only refers to a Fidelity Bond in the context of covering those non-qualifying assets. Therefore, provided a plan has all "qualifying assets", I believe that they could still claim the wavierin 4(k)). The actual Fidelity Bond information is in Part II 4(e). Just my opinion, don't know if others will agree.

[WDIK]

I agree with pmacduff, and I hope we are both right.