Right of reinvestment

ARTICLE TAKEAWAYS

  • Guidelines and restrictions for reinvesting money back into the same fund or account

Your clients may reinvest proceeds from a sale, dividend payment or capital gain distribution back into the same fund or other American Funds without a sales charge when they notify Capital Group, and this reinvestment:

  • Occurs within 90 days after the date of the sale, dividend payment or distribution
  • Is made into the same account from which the shares were sold, or the dividend payment or distribution was received*

*If this account has been closed, you may reinvest without a sales charge if the new receiving account has the same registration as the closed account.

Reinvestment restrictions

Share classes and applicable sales charges:

  • If you sell any share class, the money will be reinvested in the same share class without any initial sales charge, and any contingent deferred sales charge (CDSC) will be credited to your account
  • Dividend and capital gain distributions will be reinvested in the same share class from which the original distribution was made without any initial sales charge

Shares sold from American Funds U.S. Government Money Market FundSM:


If you sell Class A American Funds U.S. Government Money Market Fund shares that represent direct purchases (not exchanges from other funds) and reinvest the proceeds into a different fund, applicable sales charges will apply.

Automatic transactions and ongoing retirement plan contributions:

Automatic transactions (for example, automatic investments, withdrawals and payroll deductions) and ongoing retirement plan contributions are not eligible for reinvestment without a sales charge.

Considerations for Individual Retirement Accounts 

An investor may reinvest all or part of an IRA distribution as a rollover back into the same account type within 60 calendar days of the date of receipt without a sales charge.

After 60 days, but within 90 days, an investor may reinvest a distribution without a sales charge, however the reinvestment is considered a personal contribution subject to IRA contribution limits and deadlines.

Generally, the following movements of money do not incur a sales charge: 

  • Redemption proceeds from a non-retirement account (for example, a joint tenant account) used to purchase fund shares in an IRA or other individual-type retirement account
  • Required minimum distributions from an IRA or other individual-type retirement account used to purchase fund shares in a non-retirement account
  • Death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase fund shares in a different account
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Related content


IRA incoming transfer and rollover guide

Tax Center

Share classes and breakpoints

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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.

The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.

Financial professionals should always contact their back office to determine if there are any restrictions on the use of American Funds products, tools, services, websites and literature.