SIE Exam Customer Accounts: Retirement, College Savings, and More

When it comes to the SIE Exam Customer Accounts section, we have a few recommendations. In today’s recommend that you spend a little time getting to know these little tidbits.

 

SIE Exam Customer Accounts

The most confusing part of the section, for the most students by far is retirement accounts. It’s important for you to know the different retirement accounts discussed on the SIE exam. It’s even more important for you to know their differences. That’s what will likely be tested.

The curriculum covers a wide range of retirement accounts. Here are a few: Roth IRA, Traditional IRA, 401(k), 403b, and a number of others. What’s important to know here are the differences in tax treatment for each. For example, some contributions are made pretax, and some are made after-tax.

Overall, this often boils down to identifying qualified (pretax) and nonqualified (after-tax) accounts. For a brief summary on the above, check out the video at the top.

 

College Savings Accounts

Next, it’s important to know the different college savings accounts. These are largely broken down into two camps.

The first are 529 plans, and the second are Coverdell plans. The 529 plans can be divided into three parts. The first being a prepaid tuition plan. The second being a typical college savings plan. And the third, a college savings plan for individuals with disabilities (529A).

To be a little more exact, the above plans are no longer exclusively for college, and can be put toward elementary and high school education.

Consequently, it’s also important to get familiar with their tax regulations, gifting rules, and the fact that they are state sponsored.

As you will see, this section is a lot more memory work.

At Professional Exam Tutoring we recommend you first do the reading. Additionally, once you’re done that, then take some practice questions. Notice what seems to be sticking from your readings, and what doesn’t. For what doesn’t stick, create your own flashcards, or study sheet around definitions or concepts you need to memorize. Revisit these concepts regularly, and eventually they will seep into long-term memory.

If you need help, we are here for you! Feel free to contact us. Good luck!