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 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...
Article — Locked Out 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 rogu...
Article — Tax Identity Theft Awareness Week 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 In...

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

Tagged with: ,