🗂️ Series 66 Account Types Cheat Sheet

The Series 66 exam tests your understanding of various account types, client relationships, and how securities professionals must tailor their recommendations. Knowing the differences between each account type — and when each is appropriate — is essential for exam success.

Use this cheat sheet as a quick reference to reinforce your knowledge of individual, joint, custodial, fiduciary, and retirement accounts.

👤 Individual Accounts

• Owned by one person
• Only the account owner can place trades or withdraw funds
• Income, gains, and losses are reported under the individual’s name and SSN
• Most common type of brokerage account

👥 Joint Accounts

• Two or more people share ownership
• Types include:
  • Joint Tenants with Rights of Survivorship (JTWROS) – passes automatically to the surviving owner
  • Tenants in Common (TIC) – ownership percentage can differ; deceased owner’s portion goes to their estate
• All account owners can trade and withdraw unless specified otherwise

🧒 Custodial Accounts

• Created for a minor under UGMA or UTMA
• A custodian manages the account until the child reaches the age of majority
• Irrevocable gifts – assets belong permanently to the minor
• Only one custodian and one minor per account

⚖️ Fiduciary Accounts

• Managed by a third party on behalf of another person (e.g., trustee, executor, guardian)
• Examples: trust accounts, estate accounts, conservatorships
• Fiduciaries must act in the best interest of the beneficiary
• Specific legal documentation is required to open the account

🏦 Retirement Accounts

• Tax-advantaged accounts designed for long-term savings
• Common types include:
  • Traditional IRA – tax-deductible contributions, taxed at withdrawal
  • Roth IRA – contributions made with after-tax income; withdrawals are tax-free if qualified
  • 401(k) and 403(b) – employer-sponsored plans
• Subject to contribution limits, required minimum distributions (RMDs), and penalties for early withdrawal

📌 Tips for the Series 66 Exam:

• Understand who controls the account, who has trading authority, and who owns the assets
• Know when discretionary authority is required
• Be familiar with suitability considerations for different account types (e.g., time horizon, tax status, income needs)
• Expect scenario-based questions about opening, maintaining, and recommending appropriate account structures

📥 Download Your Series 66 Account Types Study Tools

Mastering account types is essential for passing the Series 66 exam. Review real exam-style questions, test your understanding, and reinforce your knowledge with our comprehensive prep tools.

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