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Wondering how to save for your grandchild’s education? Get answers about opening an account, making contributions and withdrawals, updating your beneficiaries and more.
* Largest by assets, according to the 529 Quarterly Data Update, Fourth Quarter 2022 from ISS Market Intelligence. As of December 31, 2022, CollegeAmerica’s assets under management (AUM) was $74.6 billion.
† As of December 31, 2022.
‡ 529 College Savings Quarterly Fee Analysis, Fourth Quarter 2022 from ISS Market Intelligence. CollegeAmerica’s fees were in the lowest fee quartile of the 31 national advisor-sold 529 plans and in the second lowest fee quartile of the 29 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. The 0.58% average annual asset-based fee for CollegeAmerica's Class 529-F-2 shares was significantly lower than the 0.65% average annual asset-based fee for national fee-based, advisor-sold 529 plans.
§ Funds in a 529 savings account can also be used for payments toward the principal and interest of a qualified student loan (up to a $10,000 lifetime maximum per individual) for the beneficiary and each of the beneficiary's siblings. Beginning in 2024, unused funds held in a 529 account can be rolled over to a Roth IRA (individual retirement account) for the beneficiary if the account meets certain requirements. Penalty-free rollovers can be made if the account has been open for more than 15 years, and the amount to be rolled over must have been in the account for a minimum of five years. This rollover allowance has a $35,000 lifetime cap per beneficiary.
** No additional gifts can be made to that beneficiary over the next four years after the year in which the one-time gift is made. 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 professional regarding your specific situation.
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 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 American Funds Distributors, 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 Virginia529.
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
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