Beneficiary IRA FDIC Limits
A beneficiary IRA is an IRA that is continued by a beneficiary, under his own Social Security number, after the death of the original IRA owner. The beneficiary IRA is subject to the same FDIC limits as regular IRA accounts.
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Type of Account
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A beneficiary IRA must be held at a member FDIC bank in order to receive FDIC coverage. Accounts held at brokerage firms or insurance companies do not qualify.
FDIC Coverage
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The FDIC covers an account up to $250,000 per Social Security number. This is an aggregate total, meaning you can have more than one IRA but all IRA values added together can not exceed $250,000.
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Personal Savings Versus IRA
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The FDIC coverage applies to both personal assets and IRA assets, giving the owner $250,000 in personal savings and $250,000 in total IRA coverage.
Personal IRA Versus Beneficiary IRA
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If a beneficiary has both a personal IRA and a beneficiary IRA, the total aggregate of both types of IRAs must not exceed $250,000 to be fully covered by FDIC. This means a person with $250,000 in personal IRAs who has $250,000 in a beneficiary IRA is only covered for one IRA account.
Multiple Insitutions
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FDIC coverage is per person per institution. An IRA owner who exceeds FDIC coverage at one institution may transfer all or part of the beneficiary IRA to another institution where he has not exceeded coverage.
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