stock held in a roth ira

Submitted by Frank on Sat, 2023-04-01 22:36

I don’t understand in a situation where a brokerage firm undergoes a government takeover because of a ‘failure’, how is it that a client can lose their asset beyond the government-insured amount if the account holds stocks and not cash?



Submitted by RIchard Sabo on Mon, 2023-04-03 15:41

Can you provide more details to give you an answer ??



Submitted by Alan - IRA critic on Mon, 2023-04-03 15:51

  • See the following on SIPC protection provided by the Govt up to 500k per client. Major brokerages also carry private market protection (excess SIPC)  for very high limits, often over $1 billion, that kicks in after the govt limit is exhausted. That said, the limits on cash are much lower.
  • Excess SIPC | The Investment Center (investmentctr.com)


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