529 contributions and exchanges
There is no annual contribution deadline.
Note: Contributions count as gifts in the year they are made. For a contribution to count as a gift in a certain year, it must be made by December 31.
No, checks should be made payable to CollegeAmerica and should include the account number and investment instructions.
Yes, a refund of a qualified education expense (QEE) from an eligible educational institution can be reinvested into your CollegeAmerica account. It must be submitted with a letter of instruction stating that the investment is a recontribution of a refund.
Refunds must be recontributed within 60 days into one of the following:
- The account
- Another qualified tuition program for which the student is the beneficiary
Yes, a one-time exchange or adding an automatic exchange plan is considered a strategy change. Once an automatic exchange has drafted, updating or removing the plan is also considered a strategy change. Two strategy changes are permitted by the Internal Revenue Service (IRS) per calendar year.
Yes, multiple exchanges are considered a single strategy change if they are performed on the same calendar date.
Yes, a one-time rebalance of shares or adding an automatic rebalance plan is considered a strategy change. Once an automatic rebalance plan has drafted, updating or removing the plan is also considered a strategy change.
Visit CollegeAmerica 529 Tax FAQ for information on contribution deductibility, gift tax guidelines and tax reporting for qualified and nonqualified distributions.
For general tax information, visit the Tax Center.
529 distributions
Requests are generally processed the day they are received. Requests made after market close are processed the next business day. Money from a distribution is sent the following business day.
Delivery estimates:
- Check mailed via USPS: allow 7 to 10 business days
- Check sent via expedited delivery*: allow 2 business days
- Automated Clearing House (ACH) to your bank on file: allow 1 to 3 business days
* Expedited delivery options are available for an additional charge.
Money going to the school is sent via check. Requests are typically processed the day they are received. Requests made after the market close are processed the next business day. Money from a distribution is sent the following business day. Once it’s received by the school, the time it takes for the payment to be credited to the student’s account varies.
Delivery estimates:
- Check mailed via USPS: allow 7 to 10 business days
- Check sent via expedited delivery*: allow 2 business days
* Expedited delivery options are available for an additional charge.
Distributions can be sent to the owner, beneficiary, school or a third party. Depending on the option, you can request a distribution online, via phone or in writing. For additional information on distribution options, visit 529 distribution payee options.
Visit the Federal Student Aid website and use the Federal School Code Search to verify the school is an eligible educational institution by confirming it has a federal school code.
Generally, a signature guarantee is required when:
- A check is mailed to an address of record that was changed in the last 10 calendar days
- The distribution is more than $125,000
- The distribution is to the beneficiary and is more than $25,000
- The distribution is sent to and/or payable to a third party, other than the school
- ACH is to a bank account added within the last 10 business days and/or the account owner or beneficiary is not listed in the bank account registration
Yes, however the new beneficiary must be a member of the current beneficiary’s family,* and for tax-reporting purposes, the funds must be transferred to the new beneficiary.
To change the beneficiary and take a distribution, complete the CollegeAmerica Account Change Request (PDF) and the CollegeAmerica Distribution Request (PDF).
* Transferring funds to someone other than a family member may result in taxes and penalties.
Visit CollegeAmerica 529 Tax FAQ for information on contribution deductibility, gift tax guidelines and tax reporting for qualified and nonqualified distributions.
For general tax information, visit the Tax Center.
529 owner and beneficiary changes
Yes. To avoid federal income tax and a 10% federal tax penalty on earnings, the new beneficiary must be a member of the same family. Transfers made to family members are non-reportable and non-taxable events. Visit CollegeAmerica 529 beneficiaries and owners for more information.
Yes. To change the beneficiary and take a distribution, complete the CollegeAmerica Account Change Request (PDF) and the CollegeAmerica Distribution Request (PDF).
No, a CollegeAmerica account can have only one owner. The person designated as the owner should be the person who will be managing the account most often.
A CollegeAmerica account owner:
- Must be a U.S. citizen, a legal U.S. resident, a trust or an entity
- Must be of legal age to own securities (18 years old in most states)
- May be the same person as the beneficiary
A CollegeAmerica successor owner:
- Must be a U.S. citizen, a legal U.S. resident, a trust or an entity
- Must be of legal age to own securities (18 years old in most states)
- May be the same person as the beneficiary
Log in to your account and update the successor owner online or complete the CollegeAmerica Account Change Request (PDF).