A 401K Trustee surety bond is a fidelity surety bond required by the Employee Retirement Income Security Act (ERISA) covering those responsible for managing an employee benefit plan and handling funds or other property of such a plan. An ERISA surety bond is intended to protect the plans from dishonesty and fraud committed by these individuals.
The 401K Trustee surety bond amount for each plan is equal to no less than 10 percent of the amount of plan funds handled, subject to a $500,000 maximum bond amount. However, higher limits may be purchased.