Erisa Bond

[PFranckowiak]

I have a family owned business 401(k) Plan.

Was husband and Spouse. Now hired 16 year old child to work and they have no age or service eligibility for the plan.

16 year old is going to defer and get Profit Sharing.

It is my understanding that once the 16 year old is hired (summers and Part time during School year), plan is now subject to ERISA, can no longer file 5500EZ.

I think a ERISA Bond would now be required, unless their is something I am missing about a minor child in this situation.

Am I missing anyting thing???

Thanks

Pat

[JanetM]

The plan will require a bond now that it is ERISA plan. I don't think that the employee being 16 matters. What if the 16 year old was not theirs.

List of approved entities at www.fms.treas.gov/c570

[masteff]

can no longer file 5500EZ.

The 5500EZ instructions agree w/ that statement.

[PFranckowiak]

Thanks

The 16 year old is their child, I just wondered if there was anything that would exempt them because it was thier own child that was working for them. I couldn't find any thing that would exclude them from being an ERISA plan or bond requirements because it was still ALL in the Family.

Pat

[Kimberly S]

The exemption applies only to owners and their spouses, not their children.