A small employer maintained a profit sharing plan, and of course, complied with ERISA's bonding requirements. By the end of the 2005 plan year, all employees were terminated. A contribution was made to the plan in March 2006 (for the 2005 plan year). The owner and his wife were the only employees in 2006. Contributions for 2006 were made only to the owner and wife's account. Again, in 2007, the owner and the spouse are the only employees. The ultimate question is:

Does ERISA's bonding requirement continue to apply if the only employees are the owner and the spouse? What if a former employee still has an account balances in the plan?

Any guidance is very much appreciated!! Thank you.

If the plan covers only the owner and the owner's spouse, it is not subject to the bonding requirements.

If a former employee has an account balance, the plan would be covering individuals in addition to the ower and the owner's spouse, so the bonding requirements would still be applicable.