Consider your options
Coverdell Savings, TUTMA, or Texas College Savings Plan?
All plans 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
There are considerable differences between the three as shown in the chart below. One, two, or all three accounts can be opened for each child.
Three Popular Options
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Offered at Abilene Teachers FCU?
Offered at Abilene Teachers FCU?
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Annual Contribution Limit?
Annual Contribution Limit?
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Expenses Covered
Expenses Covered
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Account Control
Account Control
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Interest Earned?
Interest Earned?
Texas Uniform Transfer to Minors (TUTMA)
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Offered at Abilene Teachers FCU?
Yes
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Annual Contribution Limit?
None
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Expenses Covered
Any, if the expenditure is used for the benefit of the designated beneficiary
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Account Control
Account holder retains control until the beneficiary turns 21. At that point, ownership transfers to the beneficiary.
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Interest Earned?
Yes, at the current ATFCU savings rate.
Texas College Savings Plan
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Offered at Abilene Teachers FCU?
No. Please visit Texas College Savings for information.
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Annual Contribution Limit?
$15,000 per donor
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Expenses Covered
College expenses, expenses at eligible K-12 schools, or to repay qualified education loans
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Account Control
Account holder retains complete control. Account holder may change the account beneficiary.
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Interest Earned?
Investments are selected by account holder and subject to market fluctuations.
Coverdell Education Savings
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Offered at Abilene Teachers FCU?
Yes
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Annual Contribution Limit?
$2,000 per beneficiary
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Expenses Covered
Education expenses at K-12 schools and/or college
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Account Control
Account holder retains control. Assets must be used before the beneficiary turns 30.
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Interest Earned?
Yes, at the current ATFCU savings rate.
Kari B., member since 2016I 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.
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 beginning of January 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.
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Open a college savings plan today
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