Where do I begin?
Now that you’ve added another child, your happiness has multiplied. But so has your to-do list. Who has time to think about college planning? Don't sweat it. It's never too late — or too early — to start saving.
Where do I begin?
Savings calculator
Don’t let the need to be perfect stop progress. Even if you can only save $50 a month right now, you’ll still be ahead of the game.
If I save a month
Estimated savings when my child 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
A 529 savings plan can be transferred to cover the educational expenses for a family member of the original beneficiary.
Have more questions?
Wondering how to save for your child’s education? Get answers about opening an account, making contributions and withdrawals, updating your beneficiaries and more.
Can I change the 529 savings plan beneficiary?
You can change the beneficiary anytime. To avoid possible penalties, make sure that the new beneficiary is a family member of the previous beneficiary. A member of the family generally includes the beneficiary’s children and grandchildren, the beneficiary's brothers, sisters, parents, uncles, aunts, in-laws, spouses — even a first cousin!
Can I contribute to both a 529 savings plan and a Coverdell Education Savings Account?
Sure. Keep in mind that there are separate limits for both accounts. A Coverdell’s annual contribution limit is only $2,000 per year, per student. There's no annual limit on contributions to a 529 savings plan. However each state's plan has a limit on the total account value. You can contribute up to $16,000 ($32,000 for married couples) annually without gift tax consequences. Under a special election, you can contribute up to $80,000 ($160,000 for a married couple) at one time, accelerating five years worth of contributions.
How can I roll over assets from one 529 savings plan to another?
If you want to transfer 529 savings plan assets into CollegeAmerica, a financial professional can assist you.
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 then download the application below.