SIPC
SIPP INDUSTRIES INC NEW
stock OTC

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SIPC protects against broker failure, not investment losses. If your 401k actually owns the securities , the assets are generally seperated and should transfer to another custodian

Small thing: I’d separate “brokerage I trust to custody money” from “app that feels nice.” For $2k in ETFs, either is probably operationally fine, but I’d compare boring stuff first: SIPC/clearing setup, recurring ETF buys/fractional shares, export/tax docs, customer support, transfer fees, and whether the UI nudges you to trade more.
If Robinhood isn’t missing anything you actually need, no need to panic-move. Just don’t let the app turn ETF investing into checking a scoreboard every day. Fidelity/Schwab are boring in a good way, which is kind of the point for long-term stuff.

Large brokerages will typically have extra SIPC insurance. If you want to know if they do, then you can always contact them and ask.

Note also that SIPC does not work the same as FDIC. SIPC replaces lost securities, exactly as they were. Not dollar amounts. If in a bad event you lost your 100 shares of PEP, SIPC would restore your 100 shares PEP to you. PEP may have dropped 50% between when it was lost and when it was restored. That loss stays with you.
Also, SIPC does not restore lost cash, but some brokerage cash might be in the broker bank product which may be FDIC insured.

>What happens to a 401k over the SIPC limit
401ks aren't covered by SIPC (unless it's in a brokerage-link). 401ks are covered by ERISA.
>and your institution holding your 401k became insolvent (or fraud occurred), do all 401k accounts remain whole?
Yes. 401ks are held in trust. If the employer or 401k recordkeeper goes bankrupt, the 401k itself is unaffected as it's housed separately.
401ks are so ridiculously [regulated](https://www.irs.gov/retirement-plans/401k-plans) that large scale institutional fraud is impossible.
>Generally, how safe is a person’s money if their 401k is over $500k and the brokerage goes under or if fraud occurs?
Very safe, and again there's no $500k SIPC threshold for 401ks.
It's not safe from *market* losses of course.
>Would they be screwed if a major firm fails/fraud occurs?
Not at all

What happens to a 401k over the SIPC limit if the institution goes under or fraud occurs?

the main catch is you lose your voting rights while shares are lent out, and if robinhood goes under before the shares are returned you're stuck in bankruptcy court instead of getting SIPC coverage. the income is usually like $2-5 a month unless you're holding something really in-demand for shorts.

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I wouldn’t do it. Maybe you get a penny every once in a while and if you do it your funds aren’t SIPC insured. You’re probably fine doing it but it doesn’t pay very much from my experience.

FDIC insurance only matters if the bank goes defunct or robbed. That’s not going to happen to Vanguard or Fidelity or Schwab…. And if it does.. we have way bigger problems. It’s backed by a SIPC which for your purposes is basically the same. You can put your 90k in any of the big 3 with confidence

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This has been removed for violating rule #2: **limit discussion of securities and investments**.
Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post.
Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision.
Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**.
Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post.
Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision.
Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This was removed for violation rule #9: **no solicitation, promotions, or third-party content**.
Don’t make posts soliciting or promoting opportunities to members of the community for personal benefit or otherwise. Do not copy/paste copyrighted content from third-party sources into your posts or share anything that infringes on intellectual property rights. All links will be evaluated for relevancy to the post topic.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**.
Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post.
Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision.
Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**.
Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post.
Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision.
Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**.
Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post.
Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision.
Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

This has been removed for violating rule #2: **limit discussion of securities and investments**.
Thanks for your post seeking investment advice or discussing specific securities. Please keep all conversations about portfolios and specific investments in our monthly discussion post.
Fellow Redditors may offer an opinion on investments. Fidelity doesn’t endorse any of the expressions, opinions, or content posted by non-Fidelity members or any third parties on  r/fidelityinvestments. Do not rely on comments to form the basis of an investment decision.
Always make sure to do your due diligence before investing. Remember to look for the “Community Care Representative” flair to make sure it’s us.
*Fidelity Brokerage Services LLC, Member NYSE, SIPC*

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