What is an ERISA / 401K Surety Bond?
The Employee Retirement Income Security Act of 1974 Section 412 requires that every person or fiduciary who controls or handles 401K plan assets to obtain an ERISA / 401K Bond. The ERISA / 401K Surety Bond provides protection to the plan and its participants against losses 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 a Florida Erisa / 401K Bond?
- Complete our online Florida Erisa / 401K Bond application, or
- Download and complete our printable Florida Erisa / 401K Bond application, and
- Receive your surety bond quote in minutes!