Before you get started
Requests to distribute from your CollegeAmerica account(s) are generally processed on the same business day. Requests received after the close of the New York Stock Exchange are processed at the next business day’s price per share. Consider talking to your financial professional before taking a distribution. They can offer advice and help you make decisions that support your long-term financial plan.
Things to consider
- If CollegeAmerica distributions are not used for qualified education expenses, the earnings may be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income taxes
- Distributions sent via check are generally mailed the business day after they are processed
- Distributions sent to a bank account via Automated Clearing House (ACH) are typically deposited into your bank account within 3 business days
- When you complete a distribution, the price you receive is determined by the business day’s closing price per share. This value may be more or less than your original purchase price. Please keep in mind that CollegeAmerica distributions, including the basis and earnings, are tax-reportable.
- For a complete guide to your CollegeAmerica savings plan, review the CollegeAmerica Program Description (PDF)
