Get information about the ways you can withdraw shares.
You may withdraw money from your account at any time, although online and phone redemptions are not available for certain types of accounts. You should always talk to your financial professional before selling shares. He or she can offer advice and help you make decisions that fit your long-term financial plan.
When you sell shares, the price you will receive is the next closing net asset value. This value may be more or less than your original purchase price, so please keep in mind that the sale may trigger a gain or loss for tax purposes.
The maximum daily redemption amount is $125,000 per shareholder. Redemption checks will be mailed to the address on your account, provided that address has not changed in the last 10 days. If sending funds directly to a bank account, any new instructions or updates will be subject to a 10-calendar-day hold before using this option.
Redemption checks will be mailed the next business day if the request is received before the close of the New York Stock Exchange® (NYSE). If you have linked your bank account to receive electronic deposits, the redemption amount will be automatically deposited into your bank account within 3 business days.
Selling Class C and Class 529-C shares
Class C and Class 529-C shares have a 1.00% contingent deferred sales charge (CDSC) that you will pay only if you sell shares within the first year of each purchase. The CDSC for Class C shares is waived for death, post-purchase disability, certain exchanges of shares, tax-free returns of excess contributions to IRAs, automatic withdrawals that do not exceed 12% of the account value, the complete termination of a trust upon the occurrence of a particular event as specified in the trust document, and certain retirement distributions (after age 70½). The CDSC for 529-C shares is waived for the beneficiary’s death, post-purchase disability and receipt of scholarship.
If you specify a dollar amount to be sold, we will sell sufficient shares so that the sale proceeds, after deducting any CDSC, equal the amount requested.
Class C and Class 529-C shares carry higher annual expenses than Class A and Class 529-A shares for the first 10 years. After 10 years, Class C shares convert to Class F-1 shares. Effective December 1,2017, all eligible 529-C shares will automatically convert to 529-A shares before the end of their 10-year anniversary month.
Establishing an automatic withdrawal plan
You can make automatic withdrawals of $50 or more. The money can be deposited in your bank account, or you can have a check sent to someone else.
Establish an automatic withdrawal plan by filling out the applicable form.
- Non-Retirement Accounts (PDF)
- Traditional or Roth IRA Accounts (PDF)
- CollegeAmerica® Accounts (PDF)
- Education Savings Accounts (ESA) (PDF)
- ABLEAmerica℠ Accounts (PDF)
Once you’ve linked your bank account to receive electronic deposits, you can log in to your account and click the Automatic Transactions button next to the appropriate account to add or update an automatic withdrawal plan. You can contact your financial professional or call us if you need assistance.
If withdrawals are used for purposes other than disability expenses for ABLEAmerica, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax.
Dividends and capital gains
Dividends and capital gains are reinvested in your account. However, you can choose to have these distributions deposited to your bank account or mailed by check to someone else.
Go to dividend and capital gains options to make changes to your distribution options.
Money market checks
You can write checks for $250 or more against your Class A share account(s) in American Funds U.S. Government Money Market FundSM.
Your money continues to accrue daily dividends until the checks clear the fund’s bank. Each month, you will receive photo images of your cleared checks on 8" x 11" statements.
To set up check-writing privileges, please contact your financial professional or call us. A book of 20 checks will be mailed, generally within 3 weeks. Check-writing privileges are not available for Class C share accounts.
Note: For your security, you must wait 10 calendar days to order money market checks after updating your address, name or other account registration information.
You can sell shares from your Capital Bank and Trust Company (CB&T) traditional, Roth, SIMPLE and SEP/SAR-SEP IRA on our website. Call or send us the appropriate distribution form from the Forms page.
CollegeAmerica® 529 and Coverdell Education Savings Account distributions
You can sell shares from your CollegeAmerica 529 and Coverdell Education Savings Account on our website by visiting Your Accounts. You can transfer withdrawals directly into the checking or savings account linked to the CollegeAmerica account, or have a check sent to the mailing address on file. You can also call or send us the appropriate distribution form from the Forms page.