Fidelity Bond required when only remaining participants are owners?

[jukeboy56]

A sole proprietor and his wife own and operate a business that sponsors a profit sharing plan. In the past there have been employees who shared in contributions, but the business no longer has employees. All participants except the business owner and his wife have taken their distributions from the plan. The business owner isn't sure at this point if he will hire employees in the future, but wants to continue making contributions for himself and his wife. Since, at this point, a fidelity bond is in effect primarily protecting the owner from himself, is he required to continue purchasing the bond?

[WDIK]

It is my understanding that qualified retirement plans that cover only the owner and the owner's spouse are not subject to the bonding requirements.

[Guest mrjones]

According to the Pension Answer Book (question 20:37), a qualified retirement plan covering only the owner, or owner and owner's spouse, is not subject to the bonding requirements. Bonding is also not required if a qualified plan covers only partners and their spouses.

The book cites DOL Reg. § 2510.3-3

[Blinky the 3-eyed Fish]

I think someone is studying for exams.

[jukeboy56]

Not guilty here, if you mean me. It's a real-life situation. Besides, after completing the CEBS program I vowed to never again try to make my 48-year old brain memorize things it couldn't retain even when it was 20.

[Blinky the 3-eyed Fish]

No, not you.

http://benefitslink.com/boards/index.php?s...=0entry112740

[jukeboy56]

Ah, Billy Paul on the AM radio while cruising Broadway in my '65 T-Bird......thanx for the memories.

[Guest mrjones]

I think someone is studying for exams.

Guilty as charged..ha ha ha

[AndyH]

"Billy Paul"?

Wow. I had to Google that one. That is one fine juke box memory you have there Mr. CEBS.

[maverick]

Don't remember the exact song title (Mrs. Jones, whatever), but I definitely remember the song. I believe it hit the airwaves in late 1972 or early 1973. For the life of me, I can't recall if Billy Paul had any other hits. Wonder if he was a "one hit wonder"?

Not that this has anything to do with fidelity bonds.

[AndyH]

infidelity bonds?

I can feel Harwood coming.

[jukeboy56]

Also in the top 100 by Billy Paul:

"Am I Black Enough For You" 1973

"Thanks For Saving My Life" 1974

"Let's Make A Baby" 1976 (Not to be confused with Paul Anka's "(You're) Having My Baby" )

Can't say I remember any of these.

[Kirk Maldonado]

I'm pretty sure the name of the song was "Me and Mrs. Jones."

[Lori Friedman]

Andy,

Do not...I repeat, do NOT, try to pretend you're too young to remember Billy Paul.

[AndyH]

I do not ever remember the name "Billy Paul" before, although clear as day I remember "Me and Mrs. Jones, we got a thing goin on" played over and over and over on my parents new hi tech AM radio in the sparkling new AMC station wagon with wood on the side of it.

Lori, my musical interest at that time was limited to trying to determine whether or not KLAATU was really the Beatles.

[Lori Friedman]

KLAATU...there's a name I haven't heard in ages. "Calling occupants of interplanetary craft..."

[AndyH]

Beautiful! That was a regular campfire sing-a-long. Just sing that one in shower a few times and see how quickly they lock you up.

http://www.klaatu.org/lyrics/347est_lyrics.html#album1-1