Series 65 Exam Prep – Retirement and Tax Strategies

💼 Series 65 Exam Prep – Retirement and Tax Strategies

Retirement planning and tax-efficient investing are core responsibilities of an investment adviser representative — and the Series 65 exam tests these topics in depth. Failing to master this section can cost you valuable points and weaken your ability to provide comprehensive financial advice.

This guide breaks down the most tested retirement and tax strategies you need to know to pass with confidence.

📚 Retirement Account Types

🔹 Traditional IRA

• Tax-deductible contributions (subject to income limits)
• Tax-deferred growth
• Required Minimum Distributions (RMDs) begin at age 73
• Withdrawals taxed as ordinary income

🔹 Roth IRA

• Contributions made with after-tax dollars
• Qualified withdrawals are tax-free
• No RMDs for original account owner
• Income limits apply for eligibility

🔹 401(k) Plans

• Employer-sponsored, tax-deferred contributions
• High annual contribution limits
• May include employer match
• Early withdrawal penalties apply before age 59½ (with exceptions)

🔹 403(b) and 457 Plans

• Designed for public sector and non-profit employees
• Similar tax treatment to 401(k)s
• 457 plans may allow penalty-free early withdrawals

🔹 SEP & SIMPLE IRAs

• For self-employed individuals or small businesses
• Higher contribution limits than traditional IRAs
• SIMPLE IRA: both employee and employer contribute

💰 Tax Planning Strategies

✅ Tax-Loss Harvesting
Offset capital gains by realizing losses on underperforming assets.

✅ Asset Location
Place tax-inefficient investments (like bonds) in tax-deferred accounts, and tax-efficient assets (like ETFs) in taxable accounts.

✅ Capital Gains Timing

• Short-term gains (held ≤1 year) taxed at higher ordinary rates
• Long-term gains (held >1 year) taxed at preferential rates

✅ Qualified vs. Non-Qualified Dividends
Understand how dividends are taxed and how they impact portfolio decisions.

✅ Roth Conversions
Convert traditional IRA funds to Roth IRAs during low-income years for long-term tax savings.

✅ Charitable Contributions and Gifting
Leverage deductions and gifting strategies to reduce taxable estate or income.

🧠 Exam Tips: Retirement & Tax Topics

• Know contribution limits for IRAs, 401(k)s, and SEP/SIMPLE IRAs
• Understand catch-up contributions allowed for those aged 50+
• Memorize tax treatment of withdrawals and penalties for early distributions
• Master the rules around Required Minimum Distributions (RMDs)
• Identify which accounts grow tax-free vs. tax-deferred
• Be able to apply suitability concepts based on client tax status, time horizon, and risk tolerance

⚠️ Common Mistakes to Avoid

❌ Confusing Roth vs. Traditional IRA withdrawal rules
❌ Overlooking phase-out limits for IRA deductions
❌ Misunderstanding tax treatment of annuities vs. mutual funds
❌ Forgetting contribution deadlines (typically April 15 of the following year)
❌ Ignoring estate tax implications in wealth transfer strategies

🚀 Master Retirement & Tax Questions

The retirement and tax strategy section of the Series 65 exam requires more than memorization—it demands application. Learn how to connect tax rules with client recommendations using our expert-led course modules, practice questions, and visual cheat sheets.

Access the full Series 65 prep platform now at:
👉 finra-exam-mastery.com