What is an ERISA / 401K Surety Bond?
Erisa Section 412 requires that every person who controls or handles 401K plan assets to obtain an ERISA / 401K Surety Bond. The ERISA / 401K Surety Bond provides protection to the plan against loss stemming from fraudulent or dishonest actions by the person(s) controlling the plan.
What is the current market for an ERISA / 401K Surety Bond?
ERISA / 401K Surety Bonds are widely written by multiple surety bond markets. The ERISA / 401K Surety Bond amount must equal 10% of the plan’s assets up to a maximum requirement of $1 million per plan. Terms of approval for the ERISA / 401K Surety Bond are largely determined by previous losses to the plan if any. Typical annual premium for the ERISA / 401K Surety Bond starts at $100 with the option for reduced premiums for 2 and 3 year terms.
How do I apply for an Erisa/401k Surety Bond?
- Complete our online Erisa/401k Surety Bond application, or
- Download and complete our printable Erisa/401k Surety Bond application, and
- Receive your surety bond quote in minutes!