Special Account Types: Rapid Fire

What this video covers

• Why a 529 plan has no income or age limits while a Coverdell education savings account caps contributions at $2,000 per year with strict income phase-outs
• How the 529 K-12 expense cap of $20,000 per year contrasts with Coverdell's unlimited dollar amount for qualified K-12 costs
• What the 529-to-Roth Individual Retirement Account (IRA) rollover requires: 15-year account history, $35,000 lifetime cap, and why the Roth IRA Modified Adjusted Gross Income (MAGI) phase-out does not apply
• Why ownership drives financial aid impact: student assets assessed at a flat 20% versus parent-owned 529 assets first converted at a flat 12%
• How Uniform Gifts to Minors Act (UGMA) covers financial assets only, while Uniform Transfers to Minors Act (UTMA) covers any property including real estate
• What the Kiddie Tax does to unearned income above $2,700 in 2026, and why a minor's summer-job wages are taxed at the child's own rate
• Why the Health Savings Account (HSA) carries a triple tax advantage and 20% non-qualified withdrawal penalty before age 65, while the Flexible Spending Account (FSA) is employer-owned with no investment growth and a $3,400 salary-reduction limit