College Savings Plans

Consider your options

Coverdell Savings, TUTMA, or Texas College Savings Plan?

All offer the following –

Earnings accumulate tax-free
Qualified withdrawals are federally tax free.
Contributions are treated as gifts for federal tax purposes (caps may apply)
Contributions are not tax deductible for federal tax purposes.

However, there are considerable differences between the three as shown in the chart below.

Three Popular Options

Offered at Abilene Teachers FCU?

Offered at Abilene Teachers FCU?
Annual Contribution Limit?

Annual Contribution Limit?
Expenses Covered

Expenses Covered
Account Control

Account Control
Interest Earned?

Interest Earned?

Texas Uniform Transfer to Minors (TUTMA)

Offered at Abilene Teachers FCU?

Yes
Annual Contribution Limit?

None
Expenses Covered

Any if used for the benefit of the designated beneficiary
Account Control

Account holder retains control until the beneficiary turns 21. At that point, ownership transfers to the beneficiary.
Interest Earned?

Yes, at the current ATFCU savings rate.

Texas College Savings Plan

Offered at Abilene Teachers FCU?

No. Please visit Texas College Savings for information.
Annual Contribution Limit?

$15,000 per donor
Expenses Covered

College expenses, expenses at eligible K-12 schools, repay qualified education loans
Account Control

Account holder retains complete control. Account holder may change the account beneficiary.
Interest Earned?

Investments are selected by account holder and subject to market fluctuations.
Keep in mind that you are allowed to open one, two, or all three accounts to finance a loved one’s education.

Coverdell Education Savings

Offered at Abilene Teachers FCU?

Yes
Annual Contribution Limit?

$2,000 per beneficiary
Expenses Covered

Education expenses for K-12 schools and college
Account Control

Account holder retains control. Assets must be used before the beneficiary turns 30.
Interest Earned?

Yes, at the current ATFCU savings rate.

I received an ATFCU scholarship in 2017 and wanted to update you on my progress. I graduated from Texas A&M Corpus Christi on August 15 and have been accepted into the Master’s program in Clinical Laboratory Sciences at UT Austin. Thank you for helping to fund my dream.

Kari B., member since 2016

College Savings FAQs

Not at the current time.

We do. It is designed for our members as they graduate from high school. Applications are available around the first of February each year. Find more information in the About > Our Community section of this website.

At least a day old! Seriously, a good time would be when the child has been issued a Social Security number.

See all Savings FAQs

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Open a college savings plan today

Open in person

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(325) 677-2274 – call or text

(800) 677-6770 – calls only