Bond Information

A fidelity bond offers employers protection against losses associated with inappropriate handling of funds or dishonesty.

Plans covering at least one eligible non-owner employee are required to carry a bond of at least 10% of beginning of year plan assets, not to exceed a $500,000 policy, in most cases. These bonds are rather inexpensive and often sold in multi-year increments. The value of a plan’s fidelity bond is reported annually to the IRS via the Form 5500 tax filing.