The CollegeAmerica® 529 education savings plan has served more than 5.1 million beneficiaries since 2002*

One of the most effective ways to save for college is with a 529 savings plan. CollegeAmerica is the nation’s largest 529 savings plan,† with approximately 2.8 million families invested nationwide.* As a matter of fact, our 529 plan has been among Morningstar’s highly rated advisor-sold 529 college savings plans since 2004, the year they began issuing ratings.‡

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The CollegeAmerica difference

 

Like all 529 savings plans, CollegeAmerica is a tax-advantaged way to save for college tuition and expenses. Your 529 savings plan withdrawals will be free from federal tax as long as you use them for qualified education expenses like room and board, tuition, and required books and supplies for higher education. You can also use your 529 plan to pay for K-12 tuition up to $10,000 per year per beneficiary. The cost of certain apprenticeship program expenses is another qualified education expense.

You can even use 529 plans to pay for certain student loan expenses, including the loans of a beneficiary's sibling, up to a $10,000 lifetime maximum. Additionally, new provisions introduced as part of the SECURE 2.0 Act of 2022 enable a beneficiary to roll over up to $35,000 over their lifetime from a 529 plan directly to a Roth IRA (individual retirement account) under certain circumstances without any taxes or penalties being assessed.§

As long as you use your 529 savings plan funds for qualified education expenses, you'll receive the tax advantages that come with these plans. Your tax treatment may vary, depending on the state you live in. If withdrawals are used for purposes other than qualified education expenses, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax. States take different approaches to the income tax treatment of withdrawals. For example, withdrawals for K-12 expenses may not be exempt from state tax in certain states.

The plan is sold through financial professionals, so you always have someone to help you strategize for college savings. The underlying investments are managed by Capital Group, home of American Funds, which has been helping investors since 1931.

Flexible investment options

You decide how to invest your savings. You can select a target date fund, which automatically adjusts based upon the date you plan to use the funds. You may opt for a pre-built portfolio based upon a common goal. Or you can create a custom portfolio of individual mutual funds.

Low fees

CollegeAmerica’s fees are among the lowest for advisor-sold 529 college saving plans.** So you can keep any tax-free growth your investment earns.

Low minimum investment

You can open an account for as little as $250 (the minimum investment per fund), but subsequent contributions can be as small as $50.†† Imagine investing that amount when your child is a baby and contributing $50 monthly for the next 18 years. By the time your child is ready for college, you could be well on your way!

Proven investment track record

Capital Group has a solid track record, with experienced managers, funds with a history of good results and diverse investment strategies. Learn more about how our investment professionals manage your money through The Capital SystemTM.

Ready to start saving?

A 529 CollegeAmerica savings plan is only one type of investment Capital Group offers. For a complete investment strategy for your growing family, we recommend choosing a financial professional. Click here to learn more. Ready to open a new account? Review the CollegeAmerica program description and then download the application below.

DOWNLOAD APPLICATION

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* As of December 31, 2023.

† Largest by assets, according to the 529 Quarterly Data Update, Fourth Quarter 2023 from ISS Market Intelligence. As of December 31, 2023, CollegeAmerica’s assets under management (AUM) was $85.7 billion.

‡ Source: Morningstar, as of November 2, 2023. Ratings are based on the following criteria: process, people, parent and price. Prior to 2020, the ratings' criteria were process, people, parent, price and performance.

§ Applies to distributions after December 31, 2023. To qualify, the Roth IRA must be in the name of the beneficiary, and the 529 savings account must have been open for at least 15 years. The amount to be rolled over must have been in the account for at least five years and is subject to Roth IRA annual contribution limits. Rollovers are limited to a maximum of $35,000 per beneficiary over their lifetime.

** 529 College Savings Quarterly Fee Analysis, Fourth Quarter 2023 from ISS Market Intelligence. CollegeAmerica’s fees were in the lowest fee quartile of the 32 national advisor-sold 529 plans and in the lowest fee quartile of the 29 national fee-based, advisor-sold 529 plans, based on the average annual asset-based fees that included CollegeAmerica's Class 529-A and 529-F-3 shares, respectively.

†† The money market fund has a $1,000 minimum initial investment. All available funds have a $25 minimum if you participate in a CollegeAmerica employer-sponsored program.

Past results are not predictive of results in future periods.

Although target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met.

This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing. Similar information is contained in the CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by Capital Client Group, Inc., and sold through unaffiliated intermediaries.
Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor. CollegeAmerica is a nationwide plan sponsored by Commonwealth Savers. 
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
© 2024 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor Capital Group are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by Capital Group.