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.
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.
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.
Use a 529 savings plan for more than college tuition, including housing, required books and computer equipment.
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.
A 529 savings plan can be transferred to cover the educational expenses for a family member of the original beneficiary.
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.
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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.†
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.
* Largest by assets, according to the 4Q 2021 College Savings Quarterly Data Update from ISS Market Intelligence.
† As of December 31, 2021, CollegeAmerica AUM is $92.7B.
‡ Number of accounts as of December 31, 2021.
** 529 College Savings Quarterly Fee Analysis, ISS Market Intelligence, Fourth Quarter 2021. CollegeAmerica's fees were in the top quartile of 31 national advisor-sold 529 plans and the top quartile of 26 national fee-based, advisor-sold 529 plans based on the average annual asset-based fees.
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.
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.
American Funds Distributors, 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.