CollegeAmerica 529 FAQ

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 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 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 CollegeAmerica 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:

The address on file has changed within the last 10 calendar days and a check is being mailed to the address of record
The distribution/withdrawal is more than $250,000
The check is payable to someone other than the account owner, beneficiary or eligible educational institution
The check is mailed somewhere other than the address of record, the beneficiary’s address or an eligible educational institution
The Automated Clearing House (ACH) is to a bank account registered to someone other than the account owner or beneficiary
The ACH is to a bank account that has not been linked for distributions/withdrawals for at least 10 calendar days
The ACH or check is payable to the beneficiary and is more than $125,000

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).

Return to CollegeAmerica 529 >

Contact us

Have questions? We're here to help.

Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.

call (800) 421-4225

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

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.

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CollegeAmerica® 529 FAQ

529 contributions and exchanges

529 distributions

529 owner and beneficiary changes

Return to CollegeAmerica 529 >

Contact us

Have questions? We're here to help.

Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.

WHAT WE OFFER

INVESTMENT OPTIONS

MUTUAL FUND RESOURCES

RETIREMENT

MORE OFFERINGS

OUR APPROACH

PLANNING

LIFE MOMENTS

TOOLS & CALCULATORS

TOPICS

SERVICE & SUPPORT

MANAGING YOUR ACCOUNT

TRANSACTING IN YOUR ACCOUNT

POPULAR TASKS

RESOURCES

INSIGHTS

CAPITAL IDEAS

ABOUT US

529 contributions and exchanges

What is the deadline to make contributions into a CollegeAmerica account for the current year?

Will Capital Group accept third-party checks for a CollegeAmerica contribution?

Can money received as a refund from a school be reinvested into my CollegeAmerica account?

Is exchanging in a CollegeAmerica account considered a strategy change?

If multiple exchanges are processed on the same trade date, do they count as one strategy change?

Is rebalancing a CollegeAmerica account considered a strategy change?

Where can I find answers to questions about the tax implications of contributing to or exchanging in a CollegeAmerica account?

529 distributions

When will I receive the money from my CollegeAmerica distribution?

When will the school receive the money from my CollegeAmerica distribution?

What options are available when taking a distribution from my CollegeAmerica account?

How can I determine whether a school is an eligible educational institution?

When is a signature guarantee required for a CollegeAmerica distribution?

Can I use the money to pay education expenses for a different beneficiary than the one listed on the account?

Where can I find answers to questions about the tax implications when taking money out of a Collegeamerica account?

529 owner and beneficiary changes

Can I change the beneficiary on my CollegeAmerica account?

Can I change the beneficiary and request a distribution at the same time?

Can I add an additional owner to my CollegeAmerica account?

Who can be named an owner on a CollegeAmerica account?

Who can be named as a successor owner?

How can I update a successor owner?

Return to CollegeAmerica 529 >

Contact us

Have questions? We're here to help. Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.

Have questions? We're here to help.

Contact us 8:00 a.m. to 7:00 p.m. ET, Monday through Friday.