Introduction

Welcome to Special Types of Accounts, the unit that covers education savings, custodial accounts, and health-related tax-advantaged accounts that advisers must understand to serve clients across different life stages.

Exam Weight: Part of 30 questions

What You'll Learn

In this unit, you'll cover:

• Education-Related Accounts: 529 plans (prepaid tuition vs. education savings), Coverdell ESAs, and the new SECURE 2.0 provision allowing 529-to-Roth IRA rollovers
• UTMA/UGMA Accounts: Custodial accounts for minors, the difference between UGMA and UTMA, irrevocable gift rules, and how the kiddie tax works
• Health Savings Accounts (HSAs) and FSAs: The triple tax advantage of HSAs, how they compare to Flexible Spending Accounts, and why HSAs can double as retirement vehicles after age 65

Why This Matters

Clients saving for college, managing assets for minors, or navigating healthcare costs all rely on these specialized account types. The exam tests your ability to distinguish between accounts that look similar but have very different tax treatment, contribution limits, and flexibility. Knowing the key differences (especially 529 vs. Coverdell, UGMA vs. UTMA, and HSA vs. FSA) is important for both exam success and real-world client advising.

Let's start with education-related accounts.