IRA Account FDIC Insurance: What You Need to Know

The Federal Deposit Insurance Corporation insures deposit accounts in member banks, including qualifying retirement accounts. Check for FDIC membership by looking for the logo at the bank branch or on its website, or by using the online FDIC Bank Find tool. Individual Retirement Accounts may qualify for government insurance, but only when placed in the right type of investment and in accordance with all FDIC requirements.

Qualifying IRAs

Individual Retirement Accounts that qualify for FDIC coverage include the traditional IRA, the Simplified Employee Pension IRA, the Roth IRA and the Savings Incentive Match Plans for Employees. Some types of self-directed plans also qualify, including a self-directed SIMPLE IRA held as a 401(k).

Account Types Restricted

Only IRAs in deposit accounts qualify for coverage. For example, deposit accounts include savings accounts, Negotiable Order of Withdrawal accounts, checking accounts, certificates of deposit and money market accounts. An IRA consisting of mutual funds, stocks bonds, annuities or municipal securities isn't covered, even if you purchase the investment through the bank.

Member Bank Limit

The FDIC provides $250,000 in total insurance for all retirement accounts in one person's name at each member bank. This limit also includes any covered non-IRA retirement plans, such as some self-directed plans. Two branches of the same institution count as one bank for insurance purposes, but savers can get $250,000 in retirement coverage at as many different banks as they like. This coverage comes in addition to FDIC coverage of non-retirement accounts. The National Credit Union Administration offers similar insurance for member credit unions.