Fidelity Bond Question for retirement plans; any special exceptions for plans with separate accounts as opposed to a pooled account?

Does any special exemption for having a fidelity bond pertain to a retirement plan where the amounts reside in separate accounts instead of a pooled account? Does such an exemption exist if the business owner sets it up so that he cannot access the accounts? Each employee has a separate account, receiving his or her own asset statements monthly? Any special fidelity bond exemptions for money purchase plans?

No. The business owner (or someone to whom he delegates the job) still has to get the money from the payroll to the appropriate separate accounts in a timely manner.

Remember I am in the micro plans market as I say this. Those separate accounts need to be set up so that the owner (because he is the trustee) is the one to sign to take money out of the separate accounts.....and the only one who can sign to take money out of the separate accounts.

I have seen plans that weren't set up this way with all kinds of operational mistakes. Employees taking loans or hardship withdrawals that were not allowed by the plan or way over legal limits were the most common and biggest problems.