Introduction

Welcome to Account Types and Registration: the rules that govern how a Series 6 representative opens new accounts, titles ownership, and documents the information that must be collected and preserved.

Exam Weight: Part of 16% (8 questions across Chapter 2)

What You'll Learn

In this unit, you'll cover:

• Types of Accounts: Cash, advisory/fee-based, wrap fee, and prime brokerage, plus what a Series 6 representative can (and cannot) offer
• Account Registration Types: Individual, Joint Tenants with Right of Survivorship (JTWROS), Tenants in Common (TIC), Tenants by the Entirety (TBE), community property, and entity accounts
• Customer Account Information (FINRA Rule 4512): Required data at account opening, the Trusted Contact Person (TCP), and the 6-year record retention rule
• Retirement Plans: Traditional vs. Roth IRAs, SEP IRAs, SIMPLE IRAs, Keogh (HR-10) plans, and their 2025 contribution limits
• Employer-Sponsored Qualified Plans and ERISA: 401(k), 403(b), 457(b), defined benefit vs. defined contribution, vesting schedules, fiduciary duties, and non-qualified deferred compensation
• Transfers, Rollovers, and Distributions: Direct transfers, 60-day rollovers, the once-per-year rule, RMDs at age 73, and the SECURE Act 10-year rule for inherited accounts
• Inheritance and Step-Up Basis: How inherited securities receive new cost basis and why inherited retirement accounts are treated differently
• Account Registration Changes (Rules 4514, 4515): Principal approval for name/designation changes and the authorization records for negotiable instruments

Why This Matters

Opening an account is the starting point of every customer relationship. The Series 6 exam tests whether you know which account type fits the client, what registration passes assets outside of probate, which retirement plan a small employer should sponsor, and how long records must be preserved. Get the account setup wrong and you create tax surprises, estate complications, and regulatory violations for the customer.

Let's start with the types of accounts a broker-dealer can offer.