SIPC protection of customers with multiple accounts is determined by "separate capacity." Each separate capacity is protected up to $500,000 for securities and cash (including a $250,000 limit for cash only). Accounts held in the same capacity are combined for purposes of the SIPC protection limits.
an account held by a guardian for a ward or minor.
Additional information on separate accounts may be found in SIPC's Series 100 Rules.
The following are examples of separate accounts:
Mary has an account in her name at her brokerage firm. Mary is protected by SIPC up to $500,000.
Joe has two brokerage accounts, each in his own name. For purposes of SIPC protection, Joe’s accounts are combined, and Joe is protected by SIPC only up to a total of $500,000.
Joe and Mary are married and they have a joint brokerage account which is separate from the individual accounts that they each have at the firm. An additional maximum of $500,000 of SIPC protection is available for the joint account.
Joe has a Roth account and an IRA account, at the same brokerage. Joe is protected up to $500,000 for the Roth account and up to $500,000 for his IRA account.
SIPC protection of customers with multiple accounts is determined by "separate capacity." Each separate capacity is protected up to $500,000 for securities and cash (including a $250,000 limit for cash only). Accounts held in the same capacity are combined for purposes of the SIPC protection limits.
The SIPC is a federally mandated, private non-profit that insures up to $500,000 in cash and securities per ownership capacity, including up to $250,000 in cash. If you have multiple accounts of a different type with one brokerage, you may be insured for up to $500,000 for each account.
But that's more of a last line of defense in case your investment company becomes insolvent (extremely unlikely) and your assets don't get transferred to another brokerage (extremely unlikely). It's OK to invest more than $500,000 through a good investment company.
If your claim is over the limits of SIPC protection, you will share in customer property equally with all other customers, and if after having had your claim satisfied out of SIPC advances and receiving your share of customer property, your claim still is not fully satisfied, you will be eligible to receive a ...
Introduction: My name is Merrill Bechtelar CPA, I am a clean, agreeable, glorious, magnificent, witty, enchanting, comfortable person who loves writing and wants to share my knowledge and understanding with you.
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