Budget Bill Proposes Increased FDIC Coverage for Retirement Accounts

February 2, 2006 – It is being reported that S. 1932, a controversial budget bill that passed the House Wednesday, also contains provisions that would allow an increase in insurance coverage of retirement accounts. The bill is expected to be signed by President Bush.

According to reports, S. 1932 gives the Federal Deposit Insurance Corporation (FDIC) the authority to increase the current insurance limit of $100,000 to $250,000 immediately, with inflation-adjusted increases beginning in five years.  (Similar provisions were contained in separate stand-alone legislation, H.R. 4636, the Federal Deposit Insurance Reform Conforming Amendments Act of 2005.)  More details will be provided as they become available.