Question:  We have been contacted by a Trust company to see if IRA deposits they hold as custodians for their customers would be insured for $100,000 or $250,000 if placed with us.  If they place $250,000 at our bank, styled "Trust Company, Custodian for John Doe, IRA", would this deposit be insured for $100,000 or $250,000?

 

Answer:  The answer is $250,000.  The quote below is from page 17 of the Financial Institution Employee’s Guide to Deposit Insurance (Employee’s Guide):

 

If self-directed retirement funds (for example, an IRA account) are deposited on behalf of an individual by a fiduciary such as a deposit broker, the funds in the account will be insured as the self-directed retirement funds of the principal, added to any other self-directed retirement accounts of the principal at the same bank, and insured up to $250,000.