Special Account Types: Rapid Fire

What this video covers

• How 529 superfunding works: the $190,000 gift-splitting couple cap, the $19,000 annual exclusion, and the 5-year front-load math
• Why the 529 owner keeps control forever while the beneficiary never gains ownership, including the $35,000 Roth Individual Retirement Account (IRA) rollover trap to the beneficiary's account after 15 years
• Where Coverdell ESAs differ from 529 plans: the $2,000 per beneficiary cap, contributor Modified Adjusted Gross Income (MAGI) phase-outs, and why K-12 coverage has no separate withdrawal limit
• What separates Uniform Gifts to Minors Act (UGMA) from Uniform Transfers to Minors Act (UTMA) in permitted property types, and why both are irrevocable gifts that become the minor's outright at the age of majority
• Why custodial accounts hammer financial aid (up to 20% student asset assessment) while parent-owned 529 plans reduce aid by only up to 5.64%
• How Health Savings Accounts (HSA) achieve triple tax advantage, the High-Deductible Health Plan (HDHP) requirement, and why the account turns into a Traditional IRA at age 65
• Where the kiddie tax kicks in ($2,700 unearned income threshold), what happens to 529 superfunding at death (pro-rata estate inclusion), and why non-qualified 529 penalties hit earnings only