
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, December 27, 1993                   TAG: 9312240033
SECTION: BUSINESS                    PAGE: A8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

NEW INSURANCE LIMITS ON RETIREMENT ACCOUNTS

Keeping several retirement accounts at one bank is not the safest move. As of Dec. 19, federal deposit insurance for most retirement accounts will be limited to $100,000 per person.

A person can now have that amount covered at a bank in each of four types of retirement accounts: individual retirement accounts, Keogh plans for self-employed workers, 401(k) plans sponsored by corporations and so-called 457 plans set up by state and local governments or nonprofit organizations.

The change was mandated by a 1991 law, which was intended to limit the scope of the deposit insurance system. The law requires that assets in these four types of retirement accounts be added together for insurance purposes.

If a bank fails, the Federal Deposit Insurance Corp. will cover only $100,000 in them for each person.

Certificates of deposit that mature after Dec. 19 will continue to be covered under the old law. But once they mature, the new rules will go into effect.

"If you are concerned about your money in bank retirement accounts, deal with the highest-quality banks," said Joel Isaacson, president of Joel Isaacson & Co., a New York financial planning firm. "And spread your funds around at different banks so that you stay under the $100,000 limitation."

- The New York Times

by CNB