Schedule I; 4e Fidelity Bond Question

[Guest spanarkle]

I have a small profit sharing plan with the owner and 2 other participants in the plan. The owner has about 95% of the $225,000 of plan assets. The owner argues that since he is the trustee and has no one else handling assets (other than the broker who should be bonded himself), the fidelity bond should only need to cover the assets of the participants other than himself. The plan has a fidelity bond of $10,000, which is plenty to cover 10% of plan assets that doesn't belong to the owner. This seems to me to be a logical arguement, but I can't find anything in the reg's that would allow it. Does anyone know of such a reduction to the fidelity bond requirement?

[Archimage]

You can't find it because there isn't anything. He has to be bonded for the full amount. If it helps just tell him that the difference in price for a larger bond is minimal. In some cases the premiums might not change.

[Guest rgorman]

Besides the Fidleity Bond for the plan he should also obtain fiduciary insurance as he is the trustee.

[Earl]

because he doesn't know what the heck he is doing.