Is Your Self Directed IRA Account FDIC Insured

Case Study for today:

One of our agents Mr. Karbon approached me yesterday about what would happen to someone's self directed IRA account if the custodian went bankrupt. So, I posed the question to my friend Amanda Holbrook at Equity Trust. Because the IRA investments are titled in your name (well your IRA technically) if a custodian went bankrupt you would have 60 days to either transfer them to another custodian or take personal title to the asset. Now here is the other interesting tidbit, if the account carries a cash balance, the account is FDIC insured for up to $250,000.00, so if you are an investor that carries a high cash balance in your Self Directed IRA account, you might want to make sure you spread your accounts out enough to be fully insured on your cash portion, if you are worried about a custodian going bankrupt