1. What are self-directed retirement accounts?
   A self-directed retirement account is a retirement account for which the owner, not a plan administrator, has the right to direct how the funds are invested, including the ability direct that the funds be designated at a specific FDIC-insured bank.



2. What are the types of self-directed retirement accounts?
   Types of self-directed retirement accounts include 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.



3. How are self-directed retirement accounts insured?
   Each person's deposits in self-directed retirement accounts at the same insured bank are added together and insured up to $250,000.
   
   Naming beneficiaries to a self-directed retirement account does not increase insurance coverage.



4. Are Roth IRAs treated the same as traditional IRAs?
   A Roth IRA is treated the same as a traditional IRA for deposit insurance purposes. So, if a depositor has both a Roth IRA and a traditional IRA at the same insured bank, the funds in both accounts are added together and insured up to $250,000.
   
   

   Example of Insurance Coverage for Self-Directed Retirement Accounts

   Account Title	Account Balance
   Bob Johnson’s Roth IRA	$ 110,000
   Bob Johnson’s IRA	75,000
   Total	185,000
   Amount Insured	$ 185,000

   
   Explanation: Since Bob's total in all self-directed retirement accounts at the same bank is less than the $250,000 limit, both IRAs are fully insured.

Return to top