Increased Deposit Insurance for Retirement Accounts

Thanks for sharing this!

Got CD’s in your IRA? If so, consider holding those certificates of deposit at a Federal Deposit Insurance Corporation (FDIC) insured bank or savings institution.

You probably already know the FDIC is backed by the US Government and that deposits are protected (up to $100,000 per depositor) if the insured bank or savings institution fails.

That’s a good thing—but here’s something even better.

On April 1, 2006 FDIC insurance coverage limits on certain self directed retirement accounts on deposit at your bank or savings institution were raised to $250,000. This coverage is separate from your other deposits.

Funds in retirement accounts deposited at an FDIC insured bank for which you have the right to direct how the money is invested are covered. These include deposits in traditional and Roth Individual Retirement Accounts (IRAs), Simplified Employee Pension accounts, “Section 457” deferred compensation plan accounts, self-directed Keogh plan accounts, and self-directed defined contribution plan accounts.

Investments not covered are stocks and bonds, mutual funds, annuities, life insurance policies, and treasury bills, notes and bonds.

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: ftc.gov Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: IRS.gov Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,