Must a sole proprietor with no employees other than his spouse buy a fidelity bond for his 401(k) plan?
Rev. 05/11/06, E-mail Alert 2006-9

No. If the only participants in a plan are the owner and his or her spouse, and the plan does not benefit any other individual who could be classified as a common-law employee; the fidelity bonding requirements do not apply because such plans are exempt from ERISA Title I requirements. Citation: DOL Reg. 2510.3-3(c)(1); also Schwartz v. Gordon et al., 761 F2d 864 (2nd Cir. 1985).