Do I need a fidelity bond?

The IRS requires businesses to have insurance to protect 401(k) participants against fraud or misappropriation by those who have access to funds. Most business insurance plans will cover up to $100,000, so when plan assets are higher than this, it’s important to purchase a fidelity bond.

A fidelity (or ERISA) bond is an insurance policy which covers 10% of plan assets. If you purchase a GO-Plus or GO-Premier plan from 401GO, your fidelity bond will be included, so you won’t need to worry about it.