As of July 1, 2016, we are pleased to announce a reduction in our program administration fee. This new fee reduction provides meaningful savings to CollegeAmerica investors, with a program administration fee decrease resulting in $9 million in investor savings annually at current asset levels. The reduction in our program administration fee comes from CollegeAmerica’s successful growth in assets and collaboration with our state sponsor, Virginia529, in efforts to share the benefits of scale with our CollegeAmerica investors.
0.10% on first $30 billion of net assets
0.10% on first $20 billion of net assets
0.07% on net assets between $30 billion and $50 billion
0.05% on net assets between $20 billion and $100 billion
0.06% on net assets between $50 billion and $70 billion
0.03% on net assets over $100 billion
0.05% on net assets over $70 billion
As of July 1, 2016, the Virginia529 board approved the maximum contribution limit increase to $500,000 from $350,000. Amounts in other CollegeAmerica accounts opened for the same beneficiary as well as accounts with additional Qualified Tuition Programs administered by Virginia529 — inVEST, prePAID and CollegeWealth — will be factored into the contribution limit.
The Virginia529 board approved an extension to our existing contract for an additional 10 years until 2050.
Our lower fees are just one more reason to talk to clients about CollegeAmerica, the 529 plan of choice for more than 100,000 advisors and more than 1 million families nationwide. Visit our CollegeAmerica page to learn more and set up an account, and download our CollegeAmerica brochure, Invest in Their Future (PDF), to share with clients.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
This material is intended for use by financial professionals or in conjunction with the advice of a financial professional.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.
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.