Small business exemption from having a fidelity bond for the retirement plan? Small business exemption from having a fidelity bond for the retirement

[Guest Enda80]

Small business exemption from having a fidelity bond for the retirement plan?

Small business exemption from having a fidelity bond for the retirement plan?

I know that a sole proprietorship or a p.c. with only one employee does not need a fidelity bond, but what other exceptions occur?

[K2retire]

The exception is if the only eligible employees are the business owner and the owner's spouse.

[Guest Enda80]

I have also read of an exception to the requirement for having a fidelity bond for a partnership with only the partners as plan participants, but would that apply to a corporation with only owners as participants?

[jpod]

Technically, the scenarios to which you are referring do not trigger "exceptions." Generally the plans you describe are not subject to Title I of ERISA, and the fidelity bond requirement is an element of Title I.

[Medusa]

Different conclusion reached in following topic:

Fidelity Bond Discussion

[jpod]

Medusa: I wasn't really commenting on the substance of the issue, but you are correct: corporate plans covering only 2 or more owners are subject to Title I, whereas partnership plans covering only partners are not subject to Title I.