Investing for Minors: Compare Options

GenFi Ministries offers two tax-advantaged investment options for minors, so you can take advantage of our great investment rates and benefit the children in your life.

How are they different?

GenFi Ministries offers Coverdell Education Savings Accounts (ESA) and UTMA custodial investment accounts, so you can help support the financial future of your child, grandchild, or any other young person in your life.

	Coverdell Education Savings Account (ESA)	UTMA Custodial Investing Account
What are they?	A tax-advantaged IRA used to cover educational expenses for children.	A tax-advantaged custodial account used to gift assets to a minor, without needing to set up a trust.
What tax considerations should I be aware of?	Contributions are taxable, but interest earnings are tax-deferred (and tax-free when used for qualified educational purposes).	Transfers to a minor under UTMA are treated as completed gifts. Earnings and gains on UTMA investments are taxed to the minor (the first $1,100 is tax-exempt).
How much can I contribute?	$2,000 per beneficiary per year from all sources, until the child turns 18 years old.	No limit.
How can my contributions be used?	Funds can be used to pay for tuition, fees, books, supplies, equipment, or room and board for students attending school at least half-time. All funds must be used before the beneficiary turns 30.	When you invest with GenFi Ministries under the UTMA, you choose an “age of majority” between 21 and 25, and designate an adult custodian to manage the investment. Before the age of majority, funds invested under the UTMA can only be used for the benefit of the minor. After the age of majority, the balance of the account is payable to the minor.
Can I change the beneficiary in the future?	Assets can be transferred or rolled over to another ESA-qualified family member.	No, contributions to a UTMA are an irrevocable gift.
Can I or the minor withdraw funds early?	Our ESA and UTMA investment options are not designed for early withdrawal.	Our ESA and UTMA investment options are not designed for early withdrawal.

For investment or tax advice regarding ESA and UTMA investment options, please discuss your specific situation with an investment or tax advisor.

Ready to invest?

If you’re interested in either a Coverdell ESA or an UTMA custodial investment, please contact us today. Our dedicated, friendly, and skilled team of investment specialists would be happy to get you started right away!