Profit Sharing Plan Bonds – Why?

A common question from Employers that provide a Profit Sharing or 401k Plan for their employees is, “Why do I need this Fidelity Bond?”

The simple response is: “Because the Government say’s so – tell Bonnie I said Hi.” 

To provide a bit more detail, in 1974 the Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of Employee Benefit Programs. Within the act, it is a requirement that every Plan Official aka fiduciary (“Huh?” – The person(s) who handles the money for the plan) be bonded. “Why?” It protects the participants of the plans from dishonest acts of the Plan Officials.”

What is the required Bond Limit? 10% of the total assets in the plan, so you will likely have to update your limit with each renewal. 

Most important question – “Can Hebbeln handle Fidelity Bonds for MO and IL Employers?” A: You Bet and most other Bonds as well. 

Call (636-519-0059) or email today and we will help you get the right Bond for your Business. 

Posted by Dan Hebbeln: [email protected] 
Updated 09/14/2019