Municipal Fund Securities: Rapid Fire

What this video covers

• The MSRB's limited role: it regulates dealers and adviser-sold plans, not issuers or direct-sold plans, plus who actually enforces the rules (SEC and FINRA)
• 529 savings plans versus prepaid tuition plans: market risk and nationwide flexibility versus state-guaranteed, in-state-only tuition locks
• 529 ownership and control: the owner retains everything, the beneficiary owns nothing, and how this differs from irrevocable UGMA and UTMA custodial accounts
• The exact tax treatment of qualified and non-qualified 529 withdrawals, including the earnings-only 10% penalty and the four penalty waivers
• Superfunding mechanics, the five-year gift lockout, non-family beneficiary changes, plus K-12 and student loan repayment limits
• The 529-to-Roth rollover rules: 15-year account age, trustee-to-trustee transfer, beneficiary must be the Roth owner, and normal Roth income limits do not apply
• ABLE account specifics: disability onset before age 46, $20,000 annual contribution limit (no longer tied to gift tax exclusion), SSI suspension at $100,001 (not termination), and unaffected Medicaid eligibility
• LGIP restrictions: government entities only, stable net asset value is an aim not a guarantee, no Federal Deposit Insurance Corporation (FDIC) backing