Opening a 529 today can make all the difference for your investors
A single choice can create opportunities, fuel passions and help make dreams a reality. Choosing to recommend Capital Group’s CollegeAmerica 529 plan can unlock a world of possibilities for investors by giving children the opportunity to explore their boundless potential, while easing mounting education costs.
Discover the benefits of our CollegeAmerica investment options
529 plan benefits
- Among Morningstar’s highly rated advisor-sold 529 college savings plans since 2004, the year they began issuing ratings.*
- An attractive estate-planning vehicle, with tax benefits that allow you in 2026 to contribute up to $19,000 ($38,000 for married couples) annually without gift-tax consequences. Under a special election, you can invest up to $95,000 ($190,000 for married couples) at one time by accelerating five years’ worth of investments. 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.
- Easy-to-use investment options managed by experienced professionals using The Capital System™.
- Service and support to help you open, offer and service accounts.
- A nationwide plan sponsored by Commonwealth Savers, our longstanding state sponsor.
- A tax-advantaged investment vehicle that can help investors save for a variety of qualified expenses beyond just traditional college education.
- Anyone can open a 529 savings plan, regardless of how much money they make.
- High contribution limits allow clients to contribute until the account’s balance (including earnings) reaches $550,000.
- CollegeAmerica’s combination of features could outweigh the tax benefit one may receive for investing in other state-sponsored plans.
529 savings plans can be used for a wide variety of qualified educational expenses. Beyond traditional college education expenses such as tuition, required books and supplies, qualified education expenses include expenses for tuition, fees, books, supplies and equipment required for the enrollment or attendance of the beneficiary in an eligible skilled trade, vocational, credentialing or apprenticeship program, as well as fees for required testing and continuing education. They include certain expenses in connection with enrollment or attendance at an elementary or secondary public, private or religious school (kindergarten through 12th grade), including, but not limited to, tuition, curriculum materials, textbooks, instructional materials and online education materials up to a maximum of $20,000 incurred during the taxable year per beneficiary. Qualified education expenses also include amounts paid as principal or interest (up to a $10,000 lifetime maximum) on any qualified student loans of a designated beneficiary or the designated beneficiary’s sibling.
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. Please consult your tax advisor for state-specific details.
Plan availability
Financial professionals 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-2 share classes.
Explore the benefits of our employer-sponsored CollegeAmerica 529 plans
A 529 savings plan can be part of an employer’s benefits package
Many employers want to help with the high costs of higher education. A 529-E plan can be an easy way for your business owner clients to do so, with no setup costs or mandatory contributions.
529 plan benefits
- 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.
- Enables employers to provide an employee benefit with no setup costs for employers and no up-front sales charge for participants.
- Minimal administration because employees manage their accounts directly with your plan’s financial professional.
- There is no minimum participation. While widespread employee participation is welcome, a single shareholder is enough.
Plan availability
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 Class 529‐E shares.
529 setup and service
To set up a new CollegeAmerica 529, visit the Account Resource Center to easily access all of the required paperwork, resources and more.
529 Setup and Service
We've made setting up a CollegeAmerica 529 simple, so you can help unlock new worlds of possibilities for your clients and your practice.
Footnote/Important information:
* Source: Morningstar, as of November 10, 2025. Ratings are based on the following criteria: process, people, parent and price. Prior to 2020, the ratings' criteria were process, people, parent, price and performance.