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Waiver of Bonding Requirement


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Posted

I have a client with a lot of non-qualifying assets in his profit sharing plan. He is having problems getting a bond to avoid the audit requirement. His share of the plan is over 70%. He is also the trustee. He wants to waive any fiduciary liability for his share of the assets to reduce the bonding requirement. I told him that he cannot do this. However, he wants me to look to make sure. I have and found what I expected - nothing. Has anyone ever heard of this? Can it be done?

Posted

Never heard of it. Doubt very seriously it can be done.

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