Before you exchange, here are some things to keep in mind:
Exchanges are generally allowed within the same share classes. Exception: American Funds Money Market Fund® allows Class A shares to be exchanged into any fund’s Class C shares, except those of Intermediate Bond Fund of America®, Short-Term Bond Fund of America® and Limited Term Tax-Exempt Bond Fund of America®.
A sales charge will apply for exchanges from money market fund Class A shares, if the shares exchanged were not already subject to a sales charge.
The minimum investment is $250 for most funds. The money market fund and state-specific tax-exempt funds require a minimum investment of $1,000.
To establish an automatic exchange plan, the receiving fund’s minimum investment must be met. Or, the originating fund’s balance must be at least $5,000 and the receiving fund’s minimum investment must be met within 5 months. The minimum amount for automatic exchanges is $50.
For tax purposes, an exchange is considered a sale and purchase, unless it’s within a retirement plan. The sale and purchase are processed simultaneously at the share price determined after the exchange order is received.
Exchanges from Class A, C or F-1 shares into CollegeAmerica® Class 529-A, -C or -F-1 shares may result in significant legal and tax consequences.
Exchange requests submitted after the close of the New York Stock Exchange® (4 p.m. Eastern time) on a business day will be processed the next business day.
The exchange privilege can be terminated or changed at any time upon 60 days’ notice.
It’s always a good idea to work with your financial adviser when making decisions about your investments and account transactions. He or she can offer advice and ensure your decisions fit your long-term financial goals.
Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica. Before investing in any state’s 529 plan, you should consult your tax adviser.
Interests in CollegeAmerica are sold through unaffiliated intermediaries.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and the CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.