Tax, Retirement, and ERISA

Tax and retirement issues are central on Series 66 because they change what advice is actually good for the client after implementation. NASAA expects candidates to understand retirement-plan types, tax implications, ERISA considerations, and how after-tax outcomes can alter an otherwise reasonable recommendation.

The best answer is often the one that notices a tax or plan-structure consequence that another answer ignores.

Key Takeaways

• Tax effects can materially change recommendation quality.
• Retirement-plan structure and ERISA issues matter because they change permissible and prudent advice.
• Series 66 often rewards after-tax thinking over pre-tax simplification.

Sample Exam Question

Why might Series 66 treat two investments differently for the same client depending on the account type?

A. Because account structure can change taxes, withdrawal rules, and fiduciary constraints
B. Because investments behave identically across all account types
C. Because retirement accounts eliminate all risk
D. Because ERISA applies to every retail brokerage account

Answer: A. Series 66 expects candidates to incorporate tax and account-structure effects into the recommendation.