Municipal Fund Securities: 529 Plans, LGIPs, and ABLE Accounts

What this video covers

• Why a 529 plan is an MSRB-regulated municipal fund security, not a mutual fund, and when the MSRB suitability rule applies versus when Regulation Best Interest (Reg BI) alone governs the recommendation
• How prepaid tuition plans differ from savings plans in risk exposure, and which qualified education expenses qualify for tax-free withdrawals (including the $20,000 K-12 tuition limit)
• The mechanics of the 529 five-year gifting election (superfunding): the 2026 dollar limits, required IRS Form 709 filing, and the estate-tax treatment of any unamortized portion if the donor dies during the five-year period
• The three penalty waiver exceptions for 529 unqualified withdrawals (death, disability, or scholarship) and the 12-month rollover restriction for the same beneficiary versus the flexibility when changing to a qualifying family member
• Why LGIPs maintain a stable $1 net asset value (NAV) and why they are strictly government-to-government products that a Series 6 representative would never sell to a retail customer
• The 2026 ABLE eligibility and contribution rules: disability onset before age 46, the $20,000 annual contribution limit (now decoupled from the gift tax exclusion), and the one-account-per-beneficiary restriction
• How the $100,000 ABLE account threshold triggers SSI suspension (not termination) while Medicaid continues uninterrupted, plus the MSRB reporting frequencies and who bears the filing obligation