Fidelity bonds are designed to act as insurance and protect 401(k) plans from loss that could be due to fraud by plan fiduciaries. A fidelity bond is required for every plan, and must be put in place to cover any person who is responsible for the plan or handles plan funds. Generally, the coverage must be at least 10% of the amount of assets in the plan. It is up to the fiduciaries of the plan to ensure that the plan has proper coverage.
Articles in this section
- What is an effective date?
- I keep hearing the terms eligibility, matching and vesting. What do they mean?
- What happens to our 401(k) plan if my company merges with or acquires another company?
- I’m new to the 401(k) space - can you help me understand what it takes to implement a 401(k) plan?
- I know that 401(k)s are highly regulated. What do I need to be thinking about before getting started with a plan?
- I am offering a 401(k) plan for the first time. Are there any benefits for me as the sponsor?
- How does employer profit sharing work?
- Who is eligible to join my 401(k) plan?
- Do I need to have my plan audited by an independent accounting firm?
- I’ve heard something about a “fidelity bond” - what is it and what do I need it for?