NCUA Says Tax-Deductible College AccountsAre Federally Insured

ALEXANDRIA, Va. - (07/08/05) -- NCUA said tax-deductible collegetuition savings plans, such as the offered under Section 529 of theIRS Code, are eligible for federal deposit insurance under theNCUSIF, as long as they are structured properly. “Ourview,” said NCUA in a new legal opinion letter issued to theWisconsin CU League, “is that NCUA’s current insurancerule provides this coverage as long as the account owner is amember of a federally insured credit union where the account ismaintained and the account is properly titled.” Carefultitling of the share certificates, reminded NCUA, is necessary toensure each investor receives individual accountcoverage.