American Funds ®

CollegeAmerica® 529 Savings Plan

CollegeAmerica is the nation’s largest 529 college savings plan1, trusted by more than 1 million families nationwide. Our easy-to-use plan offers tax-advantaged savings with low fees and quality investment options from 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 industry.3
  • Flexible, easy-to-use investment options, including target date funds.

Individual CollegeAmerica Plans 

  • A tax‐advantaged investment vehicle specifically designed for higher education investors.
  • Anyone can open a 529 college savings plan, regardless of how much money they make.
  • High contribution limits allow you to invest until the account’s value reaches $350,000.
  • 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 $14,000 ($28,000 for married couples) annually without gift-tax consequences. Under a special election, you can invest up to $70,000 ($140,000 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.
  • A nationwide plan sponsored by Virginia529℠, our longstanding state sponsor.
  • 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 “fund of funds” portfolio of actively managed American Funds aligned with an investor’s time horizon. A carefully monitored college savings glide path means no more manual reallocation.

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

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

For help creating an investment mix tailored to your financial goals, contact your financial professional.

Advisors and higher education savers from all 50 states are using CollegeAmerica to save for college.


Employer-Sponsored CollegeAmerica Plans 

  • Enables employers to provide an employee benefit with no startup 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 “fund of funds” portfolio of actively managed American Funds aligned with an investor’s time horizon. A carefully monitored college savings glide path means no more manual reallocation.

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

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

For help creating an investment mix tailored to your financial goals, contact your financial professional.

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.

CollegeAmerica by the Numbers

LAUNCHED IN 2002

CHOSEN BY MORE THAN 100,000 ADVISORS AND MORE THAN 1 MILLION FAMILIES NATIONWIDE

THE COUNTRY’S LARGEST PLAN, WITH ASSETS TOPPING $45 BILLION4


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.  

Depending on your state of residence, there may be an in-state plan that offers tax and other benefits not available through CollegeAmerica.   Before investing in any state's 529 plan, investors should consult a tax advisor. 

1

Largest by assets, according to the  Q4 2013 529 College Savings Quarterly Data Update from Strategic Insight. 

2

"Morningstar Names Best 529 College-Savings Plans for 2014," October 21, 2014. Morningstar ratings are based on the following criteria: process, performance, price, people and parent. 

3

CollegeAmerica has some of the lowest expenses in the 529 industry, according to a 2013 Morningstar study of 529 college savings plans. 

4

Source: American Funds. As of March 31, 2014, CollegeAmerica AUM is $45.28B. 

If withdrawals from 529 plans are used for purposes other than higher education, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax. 

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. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.