Question 6 of the Year-End Questionnaire asks for the amount of your plan’s fidelity bond. If you have one, note the dollar amount & then you will be asked to upload a copy of the fidelity bond certificate. If you do not have a fidelity bond, you should obtain one.
Every person who “handles funds or other property” of an employee benefit plan is required by regulators to be bonded. In other words, as a plan sponsor, you must obtain your own fidelity bond to insure your plan against fraud caused by employees.
Some things to know:
- The bond should name all retirement plans you sponsor
- You’ll need to ensure at least 10% of the plan’s assets
- A $1,000.00 fidelity bond covers the first $10,000 in plan assets.
Vestwell cannot apply on behalf of your business for a fidelity bond; generally, fidelity bonds are available through your business insurance provider, so reach out and mention you need one for your plan.
To read more about fidelity bonds, click here.
To see a list of certified companies that provide fidelity bonds, click here.