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Surety Bond needed for Owner & Wife


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Guest Powers
Posted

It's been a while since I have had this question and I can not find exactly what I am looking for.

I have a 2 person PSP and the two people are the owner and his wife. Is a surety bond required in this case?

Guest Powers
Posted

I have found this answer in the 2005 5500 Preparer’s Manual (section 14-27):

No bond coverage is required for one-participant plans, which are plans that cover only owners, partners, owners and spouses, or partners and spouses where such individuals own the entire business. Such plans are not considered employee benefit plans, since they have no employees and are not subject to Title I of ERISA. [29 C.F.R. § 2510.3-3]

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