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, 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.1

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).

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 American Funds by Capital Group, which has been helping investors since 1931.

See why CollegeAmerica earns its reputation as one of America’s best education savings plans.2

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 expenses are among the lowest in the industry.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'll be well on your way!

Proven investment track record.

American Funds has a solid track record, with experienced managers, 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? Your advisor can help.

In order to open a CollegeAmerica 529 savings plan, you’ll need to speak to a financial advisor. Working with a financial advisor is a good idea for all your financial needs, not only college savings. If you don’t have an advisor, you can use our online locator to find one.

  1. Largest by assets, according to the 1Q 2018  529 College Savings Quarterly Data Update from Strategic Insight.
  2. "Morningstar Names Beat 529 College Savings Plans for 2017," October 2017. Among the criteria Morningstar assessed were fees, flexibility of investment options and a solid manager selection process. 
  3. CollegeAmerica has some of the lowest expenses in the 529 industry, according to Morningstar’s “529 College-Savings Plan Landscape,” May 2016.

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. 

If withdrawals from 529 plans 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. State tax treatment of K-12 withdrawals varies. Please consult your tax advisor for state-specific details.

American Funds Distributors, Inc., member FINRA.

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.

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.