No Fidelity Bond for 2005

[Guest Ted Kowalchuk, CFP, CFS,]

A client is asking "what is the penalty for not having a Surety Bond in place for 2005". I've researched various technical references, but do not see any language that addresses this. In the meantime, I've already found a Surety company that will write a 2005 bond if/when the 2006 bond is purchased. Nonetheless, the client is pressing me for an answer. Thanx.

[Belgarath]

See attached post, which may be helpful. Or maybe not...

http://benefitslink.com/boards/index.php?s...opic=29662&st=0

Of course, there's a potential problem if this is a small plan and the asset mix is such that the client can't qualify for the small plan audit waiver. If they have to pay for a plan audit, they will be sorry!