Offer low fees, built-in simplicity and high ratings from CollegeAmerica® 529 plans, including American Funds target date funds.
For more information, call us at (800) 421-9900. Investors, please contact your financial professional.
Launched in 2002, CollegeAmerica is the nation’s largest 529 plan,* with assets topping $92.7 billion.† It has been chosen by more than 114,000 financial professionals and more than 1 million families nationwide.
Learn more about the features, benefits and investment options of our CollegeAmerica 529 Savings Plans.
Unlock a world of possibilities (PDF)
Share this brochure with clients to explain the features and benefits of CollegeAmerica.
CollegeAmerica account application (PDF)
Use this application to establish a 529 CollegeAmerica savings account.
Our college target date funds were designed to address the key challenges of saving for the rising costs of a higher education. A single investment provides diversification and a glide path matched to your clients’ investing time horizon, making saving for college easier than ever.
Choose the fund with the target date that corresponds roughly to the year the student is expected to enroll in college and begin taking withdrawals.
Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented.
The allocation strategy does not guarantee that investors’ education savings goals will be met. Investors and their financial professionals should periodically evaluate their investment to determine whether it continues to meet their needs.
Eventually the assets transition into the College Enrollment Fund, a preservation-oriented portfolio of high-quality, shorter term bonds. The assets remain there until they’re withdrawn.
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 target allocations shown are as of 7/28/22, and are subject to the oversight committee's discretion. The investment adviser anticipates assets will be invested within a range that deviates no more than 10% above or below the allocations shown in the prospectus. Underlying funds may be added or removed during the year. Visit capitalgroup.com for current allocations.
The American Funds available in CollegeAmerica can be combined for those seeking a customized and diversified portfolio.
American Funds Portfolio SeriesSM
These funds of funds were designed to pursue a common investor objectives such as growth, growth and income, income and preservation.
American Funds College Target Date Series
Learn more about the glide path, features and benefits.
American Funds College Target Date Series fund information matrix (PDF)
A financial professional reference for the College Target Date Series Funds.
For many financial professionals, college savings represents an untapped opportunity to meet new prospects and establish long-term relationships. Here are a few of the practice-building strategies featured in our suite of CollegeAmerica finanical professional resources.
Nine out of 10 parents believe college is an investment in their children's future.††
Grandparents often contribute to college savings and may not be aware of the estate-planning benefits that a 529 college savings plan offers.
They can contribute up to $16,000 ($32,000 for married couples) a year per beneficiary without gift-tax consequences. Or they may want to take advantage of a special gift-tax election that allows them to combine five years' worth of contributions into one investment of up to $80,000 ($160,000 for married couples) per beneficiary without gift-tax consequences.
No additional gifts can be made to that beneficiary over the next four years after the year in which the one-time gift is made. If the donor of an accelerated gift dies within the five year period, a portion of the transferred amount will be included in the donor's estate for tax purposes. Consult with a tax advisor regarding your specific situation.
For employers, 529 plans are a great, no-cost way to reward employees. For financial professionals they offer a foot in the door to build long-term relationships with businesses.
81% of investors say that they would likely open a 529 plan if one were offered at work.‡‡
FOR INVESTORS
CollegeAmerica — Combining estate planning and college savings (PDF)
How 529 plans can help with college and estates (Video)
FOR EMPLOYERS
CollegeAmerica — A win-win for businesses and employees (PDF)
Our comprehensive suite of college savings resources includes practice-building ideas and how-tos to help you with every aspect of your 529 business – from prospecting to enrollment.
College Savings Calculator — Determine how much clients need to save to attend a specific college, and see if their plans are on track.
Step-by-step instructions on college planning topics such as client servicing and business development can help you service clients and grow your business.
Find college savings forms, applications, client education, sales materials and more in our Forms & Literature section.
CollegeAmerica: Unlock a world of possibilities presentation (PPT)
Educate investors about the benefits of 529 college savings plans and CollegeAmerica.
* Largest by assets, according to the Fourth Quarter 2021 529 College Savings Quarterly Data Update Update from ISS Market Intelligence.
† American Funds. As of December 31, 2021, CollegeAmerica's assets under management (AUM) were $92.7 billion.
‡ "The Top 529 College Savings Plans of 2021," October 2021. Morningstar ratings are based on the following criteria: process, people, parent and price. Performance analysis takes place as part of a broader assessment of the people, process and parent criteria.
529 College Savings Quarterly Fee Analysis, ISS Market Intelligence, Fourth Quarter 2021. CollegeAmerica’s fees were in the top quartile of the 31 national advisor-sold 529 plans and the 26 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. The 0.49% average annual asset-based fee for CollegeAmerica's Class 529-F-2 shares was significantly lower than the 0.71% average annual asset-based fee for national fee-based, advisor-sold 529 plans.
†† Sallie Mae, How America Pays for College (2021)
‡‡ 529 Industry Analysis (2021 edition), ISS Market Intelligence.
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 American Funds Distributors, 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 Virginia529.
Investment professionals gradually adjust a college target date portfolio over time so that it becomes more preservation-oriented. The target date is the year that corresponds roughly to the year in which the beneficiary is expected to begin taking withdrawals. The allocation strategy does not guarantee that investors' education savings goals will be met. Investors and their financial professionals should periodically evaluate their investment to determine whether it continues to meet their needs.
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. Use of this website and materials is also subject to approval by your home office.
American Funds Distributors, 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.