Fdic ?

[emily_hope]

Are 401K plans and IRAs FDIC insured?

[emily_hope]

Sorry, didn't finish... If they are not, what happens to these investments if the Finicial Institution goes under?

[emily_hope]

Sorry, didn't finish... If they are not, what happens to these investments if the Finicial Institution goes under?

[Greebo]

No - they are investment accounts and carry risk.

[Greebo]

No - they are investment accounts and carry risk.

[Greebo]

No - they are investment accounts and carry risk.

[Greebo]

No - they are not savings accounts, they are investment accounts. They carry risk, and you can lose money.

[Greebo]

No - they are not savings accounts, they are investment accounts. They carry risk, and you can lose money.

[Greebo]

Man, nasty site hiccup last night. Sorry about hte multi spam posts.

Sorry, didn't finish... If they are not, what happens to these investments if the Finicial Institution goes under?

Well, its a BIG if - the mass media hysteria about banks at risk is just that - hysteria - there are always banks on the FDIC's watch list. However, if your 401k or IRA holder actually does go under, the possibility does exist that you could lose everything in those accounts.

[emily_hope]

Thanks, Greebo. DH and I have been discussing what to do with these investment accounts. He thought they were covered up to $100,000 like the other accounts. I didn't think so.

[Greebo]

Who are they with? Odds are, I will tell you to do nothing - or at worst, call an ELP from Dave Ramsey's list.

[PrairieRose]

Our IRA is at our bank and our bank told us that us that our account is covered under FDIC. And you can have $100K in your name, $100K in your dh's name and then $100k in a joint account and all be covered .

[Greebo]

Hey, look at this - I was mistaken!
http://www.safemoneyplaces.com/fdic.htm

What Does FDIC Cover?
Let’s begin by saying what FDIC does not cover. FDIC does not cover money placed in stocks, bonds, mutual funds, life insurance, annuities, U.S. Treasury obligations, or uninsured bank deposits. FDIC does cover up to $100,000 in deposits for one owner at one insured bank, but there are different categories of owners that may allow one to increase coverage.

Effective 1 April 2006 FDIC covers IRA balances up to $250,000 at one insured bank. FDIC coverage remains at $100,000 for nonqualified accounts (FDIC also said this limit will not increase for the foreseeable future).

Single Accounts
Accounts owned by one person and titled only in that person’s name are single accounts. If Jack has a checking account, savings account and a CD at the same bank titled only in his name, all of these accounts are added together and insured up to $100,000.

What if Jack had $80,000 in his checking account and another $80,000 in CDs at the bank?
Assuming both accounts were owned and titled by only Jack, $60,000 of the total would be uninsured deposits because the total ($160,000) is $60,000 over the $100,000 FDIC insurance limit.

What if Jack had $80,000 in his checking account at one bank and $80,000 in CDs at another bank?
Both accounts are covered because FDIC provides $100,000 of coverage for each bank.

What if Jack had $80,000 in his checking account and another $180,000 in his IRA at the bank?
Both accounts are covered because Self-Directed Retirement Accounts (IRAs and SEPs) are treated as separate titled accounts and FDIC provides $100,000 of coverage for Jack's checking account and $250,000 for Jack's IRA.

What if Jack had $80,000 in an old IRA and another $80,000 in a SEP at the same bank?
It appears both would be covered because both are IRAs and the total is less than $250,000.

[suki]

IRA's are covered under the bank's FDIC program from a total loss up to $100K per account or $250K for combined accounts within the same institution.

http://www.fdic.gov/deposit/deposits...aqs/faqs2.html

http://www.fdic.gov/consumers/consum.../fdiciorn.html

[emily_hope]

So the IRA is covered but not the 401K? The 2 IRAs are in our local bank. The 401K is in the credit union.