Now available online: Direct deposits of CollegeAmerica withdrawals
We've made it easier to redeem shares from your CollegeAmerica® 529 account. With our online services, you can now have withdrawals directly deposited into your bank account or the bank account of the beneficiary.
Once you have linked your bank account to your CollegeAmerica account using the CollegeAmerica FundsLink® form (PDF), you can initiate an online withdrawal by logging in at americanfunds.com. Withdrawals initiated online are typically deposited within three business days. As always, you can also have your CollegeAmerica assets sent via check to the mailing address on file, redeemed by phone or by mail when you send a completed CollegeAmerica Distribution Request form (PDF). It may take up to seven business days to receive your check. For more details, visit our Managing your CollegeAmerica account page.
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.
If withdrawals are used for purposes other than higher education, the earnings will be subject to federal income tax and possibly a 10% federal tax penalty.