Can the plan satisfy the audit waiver bonding requirement by having persons who handle the non-qualifying plan assets get their own bond?
Yes. The person handling the non-qualifying plan assets can obtain his or her own bond. Also, a company providing services to the plan can obtain a bond covering itself and its employees that handle non-qualifying plan assets. The bond has to meet the requirements under section 412, such as the requirements that the plan be named as an insured, that the bond not include a deductible or similar feature, and that the bonding company be on the U.S. Department of the Treasurys Circular 570 list of approved surety companies. [http://www.fms.treas.gov/c570/c570.
Related Questions
- Can the plan satisfy the audit waiver bonding requirement by having persons who handle the non-qualifying plan assets get their own bond?
- What information must be included in the summary annual report for the plan to be eligible for the audit waiver?
- Can the plans section 412 fidelity bond be used to satisfy the bonding requirements for an audit waiver?
