Where do I begin?
You’re proud of your grandchildren. And you want to reward them with the best gift of all: education. Fortunately, you know there's no time like the present to start saving for the future. Kudos to you, grandparents.
Where do I begin?
Savings calculator
How much should you save? It depends on things like your income and the schools your grandchild has in mind. It’s fine to start small.
If I save a month
Estimated savings when my grandchild is 18 years old:
$0*
That's about 0% what
you'll need for four years of in-state tuition
fees.
* Assumes a hypothetical annual growth rate of 6%. For illustrative purposes. Not intended to portray an actual investment.
Ready to create a detailed plan?
Go to the college calculatorGive it a boost!
Yearly bonus? Tax refund? Put part — or all — of it into your 529 education savings plan.
Ask for gifts toward your child’s 529 savings plan on birthdays and holidays.
Have your child join in the effort.
Lemonade stands and part-time jobs can help grow the funds, too.
It’s better to start somewhere and start now. Small savings can make a big difference over time.
CollegeAmerica 529 savings plan basics
Saving for education is like planning a big trip — getting to your destination takes a good plan. A 529 savings plan is a popular way to save for college.
A CollegeAmerica 529 savings plan makes it easy.
Flexible
Use a 529 savings plan for more than college tuition, including housing, required books and computer equipment.
Save on taxes
The earnings from your 529 savings plan investments are exempt from federal taxes, and in many cases, there is a state tax benefit as well. Tax-advantaged treatment applies to savings used for qualified education expenses. State tax treatment varies.
Transferable
You can transfer a 529 savings plan to a qualified family member of the original beneficiary.
Have more questions?
Wondering how to save for your grandchild’s education? Get answers about opening an account, making contributions and withdrawals, updating your beneficiaries and more.
How does a 529 savings plan account affect my taxes?
There’s no federal tax break for contributions. Some states offer their residents a tax break for contributions. Earnings in a 529 savings plan are free from federal income tax if withdrawals are used to pay for qualified education expenses. Otherwise, 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. You can contribute up to $17,000 ($34,000 for married couples) annually without gift tax consequences. Under a special election, you can contribute up to $85,000 ($170,000 for a married couple) at one time, accelerating five years' worth of contributions.
Who can establish a 529 savings plan account?
Any adult who is a U.S. citizen or legal resident can open a 529 savings plan. Only the account owner can make decisions affecting the account — like choosing the investments, taking withdrawals or changing the beneficiary. In addition, U.S. trusts, corporations, partnerships, nonprofit organizations and other entities may open an account.
How do I contribute to the account?
Once you’ve opened the account, you can set up an automatic investment plan, or contribute additional money online or by check anytime.
choose
CollegeAmerica 529 savings plan
You trust your doctor with your health and your mechanic with your car. You shouldn’t settle for anything less when you’re deciding where to invest your money.
Trusted by more than 1 million families nationwide, CollegeAmerica is the country’s largest 529 savings plan *, with more than $92.7 billion invested.†
We're helping more than 2.5 million investors support future students in pursuing their dreams.‡
- Any adult who's a U.S. citizen or legal resident can open a CollegeAmerica 529 savings plan, regardless of income.
- The earnings in a 529 savings plan are exempt from federal taxes if withdrawals are used for qualified expenses. And some states offer tax benefits as well.
- CollegeAmerica fees are among the lowest in the industry. **
- 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. State tax treatment varies.
Open a 529 savings plan
A 529 CollegeAmerica savings plan is only one type of investment Capital Group offers. For a complete investment strategy for your growing family we recommend choosing a financial professional to work. with via our Financial professional locator. Ready to open a new account? Review the CollegeAmerica program description and download the application below.