solo 401k exceed 250k

[Jim Fang]

I am going to roll over my 401k money from my previous employer to a solo 401k account. The amount is beyond FDIC insured $250k. what can be done to get it fully insured?

[Brian Eastman]

@Jim Fang

With a truly self-directed Solo 401(k), you can have multiple bank/brokerage accounts in the name of the plan. This would allow you to spread funds across a few institutions to stay under the $250K FDIC limit in each.

Of course, if your intention is to invest in assets such as real estate, you need to consider how long you would actually be holding in excess of $250K in cash assets, which are all that are covered by FDIC. If it is very short term, then the effort of opening multiple bank accounts may be inefficient relative to any short term risk of a banking system collapse.