CollegeAmerica 529 Savings Plans | American Funds

CollegeAmerica® 529 Savings Plans

CollegeAmerica is the nation’s largest 529 college savings plan,1 offering built-in simplicity, comprehensive support materials, and quality investment options from the American Funds.

  • Consistently recognized by Morningstar® as a highly rated advisor-sold 529 plan.2
  • Low 529 expenses are among the most affordable in the 529 industry3
  • Flexible, easy-to-use investment options, including target date funds.

Individual CollegeAmerica Plans

Advisors

  • Among Morningstar’s top‐ranked advisor‐sold 529 college savings plans since 2004, the year they began issuing ratings.2
  • An attractive estate-planning vehicle, with tax benefits that allow you to contribute up to $15,000 ($30,000 for married couples) annually without gift-tax consequences. Under a special election, you can invest up to $75,000 ($150,000 for married couples) at one time by accelerating five years’ worth of investments.
  • Easy-to-use Investment options managed by experienced professionals using The Capital System.SM
  • Service and support to help you open, offer and service accounts.
  • A nationwide plan sponsored by Virginia529,SM our longstanding state sponsor.

Investors

  • A tax‐advantaged investment vehicle specifically designed for education investors.
  • Anyone can open a 529 savings plan, regardless of how much money they make.
  • High contribution limits allow clients to invest until the account’s value reaches $500,000.
  • CollegeAmerica’s combination of features could outweigh the tax benefit one receives for investing in a state-sponsored plan.

Convenience — A single investment provides a “funds of funds” portfolio of actively managed American Funds aligned with an investor’s time horizon. A carefully monitored savings glide path means no more manual reallocation for you.

Objective-focused — With objectives like preservation and appreciation, these “funds of funds” offer diversification and control in a single investment.

Customization — Build a savings portfolio of your preferred American Funds, or select a single-fund option. Either way, you control the investment mix.

Advisors and education savers from all 50 states are using CollegeAmerica to save for education. CollegeAmerica is available in 529‐A, 529‐C, 529‐E and 529‐F share classes.


Employer-Sponsored CollegeAmerica Plans

Advisors

  • Offers an inroad to businesses with which you’d like to establish relationships and a way to develop broader and deeper client relationships with existing 401(k) plan sponsors.
  • Provides administrative ease using options such as age-based target date funds and payroll deduction.
  • Nets new assets with systematic employee contributions. Assets targeted at education savings are often sticky, long-term assets that are the foundation of many successful practices.

Plan sponsors

  • Enables employers to provide an employee benefit with no start-up costs or recordkeeping expenses to employers, and no up-front sales charge for participants.
  • American Funds maintains all the employee account records, so there is no administrative burden.
  • There is no minimum participation. While widespread employee participation is welcome, a single shareholder is enough.

Convenience — A single investment provides a “funds of funds” portfolio of actively managed American Funds aligned with an investor’s time horizon. A carefully monitored education savings glide path means no more manual reallocation for you.

Objective-focused — With objectives like preservation and appreciation, these “funds of funds” offer diversification and control in a single investment.

Customization — Build a savings portfolio of your preferred American Funds, or select a single-fund option. Either way, you control the investment mix.

Any employer with an employer identification number (EIN) is eligible to establish an employer-sponsored CollegeAmerica plan, and all employees, including part-time employees, are eligible to participate. Investors invest in the CollegeAmerica employer‐sponsored program using 529‐E shares.

CollegeAmerica by the Numbers

LAUNCHED IN 2002

CHOSEN BY MORE THAN 110,000 ADVISORS AND MORE THAN 1 MILLION FAMILIES 
NATIONWIDE

THE COUNTRY’S LARGEST PLAN, WITH ASSETS TOPPING $58 BILLION 4

Call Us
For more information, call us at (800) 421-9900, ext. 529.


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, summary prospectusesCollegeAmerica Program Description and ABLEAmerica Program Description which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica and ABLEAmerica are 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 not available through CollegeAmerica (such as financial aid, scholarship funds and protection from creditors) or ABLEAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor. 

1

Largest by assets, according to the 1Q 2018  529 College Savings Quarterly Data Update from Strategic Insight.

2

"Morningstar Names Best 529 College-Savings Plans for 2017," October 2017. Among the criteria Morningstar assessed were fees, flexibility of investment options and a solid manager selection process.

3

CollegeAmerica has some of the lowest expenses in the 529 industry, according to Morningstar’s “529 College-Savings Plan Landscape”, May 2016.

4

American Funds. As of June 30, 2018, CollegeAmerica AUM is $64B.

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.