If a company's retirement plan only has one participant, but has other non-participant employees, does it still need a bond for its retirement plan?

[Guest Enda80]

I understand that if a retirement plan has only one employee because the company it serves has only one employee, then no requirement exists for it to have a bond. (This often happens with doctors, who have a qualified retirement plan so that they can have a trust that cannot get touched if a malpractice suit ever occurs. So, they file an 1120S or 1120 even though they have no employees.) However, if the company has other employees, but only one participant for the retirement plan, does it still have to have a bond?

[WDIK]

A bond is not required until an employee other than an owner/partner or an owner/partner's spouse becomes eligible to participate in the plan.

[Guest Enda80]

A bond is not required until an employee other than an owner/partner or an owner/partner's spouse becomes eligible to participate in the plan.

Have you an official reference on that?

[Guest Sieve]

There are no employees who participate in this plan, so it is not covered by ERISA and needs no bond. Once an employee commences participation (including being eligible to make a 401(k) deferral), then the plan will need a bond. Here's a very recent discussion of this, with cites:

http://benefitslink.com/boards/index.php?s...ic=39400&hl