CollegeAmerica 529 Savings Plan - American Funds | Capital Group

The CollegeAmerica® 529 education savings plan is trusted by more than 1 million families

School children raising their hands in class

One of the the most effective ways to save for college is with a 529 savings plan. CollegeAmerica is the nation’s largest 529 savings plan,1 with more than 1 million families invested. As a matter of fact, since 2004, CollegeAmerica has consistently been recognized as among America’s best by Morningstar, a premiere investment research company.2

The CollegeAmerica difference

Like all 529 savings plans, CollegeAmerica is a tax-advantaged way to save for college tuition and expenses, as well as K-12 private school tuition (up to $10,000 per year). Additionally, for distributions made after December 31, 2018, qualified education expenses include expenses for fees, books, supplies and equipment required for the participation of a designated beneficiary in certain apprenticeship programs. Tax-advantaged treatment applies to savings used for qualified education expenses. 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.

The plan is sold through financial advisors, so you always have someone to help you strategize for college savings. The underlying investments are managed by Capital Group, home of American Funds, which has been helping investors since 1931.

See why CollegeAmerica earns its reputation as one of America’s best education savings plans.

Flexible investment options

You decide how to invest your savings. You can select a target date fund, which automatically adjusts based upon the date you plan to use the funds. You may opt for a pre-built portfolio based upon a common goal. Or you can create a custom portfolio of individual mutual funds.

Low fees

CollegeAmerica’s fees are among the lowest for advisor-sold 529 college saving plans.3 So you can keep any tax-free growth your investment earns.

Low minimum investment

You can open a CollegeAmerica 529 savings plan with as little as $250. Imagine investing that amount when your child is a baby and contributing $50 monthly for the next 18 years. By the time your child is ready for college, you could be well on your way!

Proven investment track record

Capital Group has a solid track record, with experienced managers, funds with a history of good results and sensible investment strategies. Learn more about how our investment professionals manage your money and The Capital Advantage.®

Ready to start saving?

In order to open a CollegeAmerica 529 savings plan, you’ll need to speak to a financial professional. Working with a professional is a good idea for all your financial needs, not only college savings. You can use our locator to find a financial professional.

1 Largest by assets, according to the 1Q 2020 529 College Savings Quarterly Data Update from ISS Market Intelligence. As of March 31, 2020, CollegeAmerica AUM is $66.4B.

2 “Rating the Top 529 College Savings Plans,” October 22, 2019. morningstar.com. Among the criteria Morningstar assessed were fees, flexibility of investment options and a solid manager selection process.

3 529 College Savings Quarterly Fee Analysis, ISS Market Intelligence, 4Q 2019. CollegeAmerica’s fees were in the top quartile of 30 and 18 plans based on the average annual asset-based fees for national advisor-sold and fee-based advisor-sold 529 plans, respectively.


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, summary prospectuses and 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. 

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation. 

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.

Use of this website is intended for U.S. residents only.