FDIC Insurance on IRAs to Increase April 1, 2006

On April 1, 2006, the Federal Deposit Insurance Corp. will raise the insured amount of IRAs and similar accounts (self-directed 401(k) plans, 457 plans, Keogh plans) from $100,000 to $250,000, a 150% increase.  This is the first raise since 1980.

But, the raise is not for regular accounts — they remain insured for only $100,000.

Also, only accounts like certificates of deposit and traditional savings/checking accounts are covered — not mutual funds, annuities, etc.

For more information, see FDIC Consumer News, What You Should Know About Higher FDIC Coverage for Retirement Accounts, April 2006 – Special Bulletin.