About CollegeAmerica
ABOUT COLLEGEAMERICA
Serving families since 2002
CollegeAmerica is the nation’s largest 529 plan, with assets topping $109 billion.* It was chosen by more than 134,000 financial professionals in 2025, and more than 3 million families are invested nationwide.†
- CollegeAmerica comes with Capital Group’s service, support and a long-term investment track record.
- Among Morningstar’s highly rated advisor-sold 529 college savings plans.‡
- Commonwealth Savers, our long-standing program sponsor, shares our commitment to college savings.
Built-in simplicity
- CollegeAmerica features flexible and easy-to-use investment options, including target date funds.
- We’ve made it easier for financial professionals to open, offer and service accounts with a comprehensive suite of 529 resources.
- CollegeAmerica’s fees are among the lowest for advisor-sold 529 college saving plans.§
- CollegeAmerica’s contribution limits allow clients to invest until the account’s value reaches $675,000.
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Unlock a world of possibilities
Share this brochure with clients to explain the features and benefits of CollegeAmerica.
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CollegeAmerica account application
Use this application to establish a 529 CollegeAmerica account.
ABOUT THE FUNDS
American Funds Target Date Retirement Series®
Our college target date funds were designed to address the key challenges of saving for the rising costs of a higher education. A single investment provides diversification and a glide path matched to your clients’ investing time horizon, making saving for college easier than ever.
- How it works
- Target Date Series
How the College Target Date Series works
1. Choose a fund
Choose the fund with the target date that corresponds roughly to the year the beneficiary is expected to enroll in college and begin taking withdrawals.
2. Fund is adjusted over time
Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented.
The allocation strategy does not guarantee that investors’ education savings goals will be met. Investors and their financial professionals should periodically evaluate their investment to determine whether it continues to meet their needs.
3. Assets remain until withdrawn
Eventually, the assets transition into the College Enrollment Fund, a preservation-oriented portfolio of high-quality, short-term bonds. The assets remain there until they’re withdrawn.
If withdrawals are used for purposes other than qualified education expenses, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax. States take different approaches to the income tax treatment of withdrawals. For example, withdrawals for K-12 expenses may not be exempt from state tax in certain states.
Other CollegeAmerica investment options
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Individual mutual funds
The American Funds available in CollegeAmerica can be combined for those seeking a customized and diversified portfolio.
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American Funds Portfolio Series
These funds of funds were designed to pursue common investor objectives such as growth, growth and income, income, and preservation.
BUILDING YOUR PRACTICE
Explore potential growth opportunities
For many financial professionals, college savings represents an untapped opportunity to meet new prospects and establish long-term relationships. Here are a few of the practice-building strategies featured in our suite of CollegeAmerica financial professional resources.
- For individuals
- For businesses
College savings and estate planning
Grandparents often contribute to college savings and may not be aware of the estate-planning benefits that a 529 college savings plan offers. In 2026, they can contribute up to $19,000 ($38,000 for married couples) a year per beneficiary without gift-tax consequences. Or they may want to take advantage of a special gift-tax election that allows them to combine five years’ worth of contributions into one investment of up to $95,000 ($190,000 for married couples) per beneficiary without gift-tax consequences. Additional gifts made to that beneficiary over the next four years after the year in which the one-time gift is made may reduce the donor’s lifetime gift and estate tax exemption. If the donor of an accelerated gift dies within the five-year period, a portion of the transferred amount will be included in the donor’s estate for tax purposes. Consult with a tax advisor regarding your specific situation.
Related resources
TOOLS & RESOURCES
College savings tools and resources
Our comprehensive suite of college savings resources includes practice-building ideas and how-tos to help you with every aspect of your 529 business — from prospecting to enrollment.
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Planning tools
Determine how much clients need to save to attend a specific college and see if their plans are on track with our college savings calculator.
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Forms and literature
Find college savings forms, applications, client education, sales materials and more in our Forms & Literature section.
Related resources
Footnotes/Important information:
* Largest by assets, according to the 529 Quarterly Data Update, Fourth Quarter 2025 from ISS Market Intelligence. CollegeAmerica’s assets under management are as of December 31,2025.
† As of December 31, 2025.
‡ Morningstar, “Morningstar 529 Ratings: The Best Plans of 2025,” November 10, 2025. Morningstar ratings are based on the following criteria: process, people, parent and price.
§ 529 College Savings Quarterly Fee Analysis, Fourth Quarter 2025 from ISS Market Intelligence. CollegeAmerica’s fees were in the lowest fee tertile of the 31 national advisor-sold 529 plans and in the lowest fee quartile of the 28 national fee-based, advisor-sold 529 plans, based on the average annual asset-based fees that included CollegeAmerica’s Class 529-A and 529-F-3 shares, respectively.
** 529 Industry Analysis (2025 edition), ISS Market Intelligence.
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 mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Similar information is contained in the CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.
CollegeAmerica is distributed by Capital Client Group, 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, 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.
CollegeAmerica is a nationwide plan sponsored by Commonwealth Savers.
Investment professionals gradually adjust a college target date portfolio over time so that it becomes more preservation-oriented. The target date is the year that corresponds roughly to the year in which the beneficiary is expected to begin taking withdrawals. The allocation strategy does not guarantee that investors' education savings goals will be met. Investors and their financial professionals should periodically evaluate their investment to determine whether it continues to meet their needs.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
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. Use of this website and materials is also subject to approval by your home office.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.