Series 6 Retirement Account Rules Cheat Sheet

🧾 Series 6 Retirement Account Rules Cheat Sheet
📘 Key Facts You Need for the Series 6 Exam – Retirement Plans Simplified

The Series 6 exam tests your knowledge of mutual funds, variable contracts, and retirement products. A critical section involves understanding the rules, contributions, tax treatment, and features of retirement accounts. This cheat sheet gives you a high-speed reference to nail the questions on qualified and non-qualified plans.

📍 1. Traditional IRA (Individual Retirement Account)

• Eligibility: Earned income required
• Contribution Limit (2025): $7,000 (or $8,000 if age 50+)
• Tax Treatment:
  • Contributions may be tax-deductible
  • Earnings grow tax-deferred
• Distributions:
  • Taxable as ordinary income
  • Required Minimum Distributions (RMDs) start at age 73

📍 2. Roth IRA

• Eligibility: Earned income + within income limits
• Contribution Limit (2025): $7,000 (or $8,000 if age 50+)
• Tax Treatment:
  • No deduction for contributions
  • Earnings grow tax-free
  • Qualified withdrawals (after age 59½ and 5-year rule) are tax-free
• No RMDs during lifetime

📍 3. 401(k) Plans

• Sponsorship: Employer-sponsored
• Contribution Limit (2025): $23,000 (or $30,500 if age 50+)
• Employer Match: Common feature
• Tax Treatment:
  • Contributions made pre-tax
  • Earnings grow tax-deferred
  • RMDs start at age 73
• Loans: Often permitted
• Hardship withdrawals: May be allowed with penalty

📍 4. Roth 401(k)

• Same limits as 401(k)
• Tax Treatment:
  • Contributions are after-tax
  • Earnings grow tax-free if qualified
  • RMDs apply (unless rolled into a Roth IRA)

📍 5. 403(b) Plans (Tax-Sheltered Annuities)

• Eligibility: Employees of public schools and non-profits
• Same limits as 401(k)
• Tax-deferred growth
• Investments: Mutual funds and annuity contracts only

📍 6. SEP IRA (Simplified Employee Pension)

• Used by: Self-employed or small businesses
• Contribution: Employer only, up to 25% of compensation or $69,000 (2025 cap)
• Tax Treatment:
  • Tax-deferred growth
  • RMDs apply
  • No Roth version

📍 7. SIMPLE IRA

• Used by: Small businesses (≤ 100 employees)
• Employee Contribution Limit (2025): $16,000 (or $19,500 if age 50+)
• Employer must contribute (match or flat %)
• Early withdrawal penalty: 25% if within 2 years

📍 8. Non-Qualified Plans

🧠 Test-Taking Tip:

Know the differences between Roth vs. Traditional accounts and when RMDs apply. Understand the penalty for early withdrawals (10%) and who qualifies for different plans.

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Pass with confidence by knowing your retirement plan rules cold.