One of 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 3 million families invested nationwide.* As a matter of fact, our 529 plan has been among Morningstar’s highly rated advisor-sold 529 college savings plans since 2004, the year they began issuing ratings.‡
The CollegeAmerica difference
Imagine having a powerful tool that helps you save for education in a tax-advantaged way while giving you the flexibility to pursue virtually any educational journey your child chooses. That’s exactly what a 529 savings plan like CollegeAmerica does.
Whether your child dreams of attending a four-year university, mastering a trade at a vocational school, pursuing seminary studies or diving into an apprenticeship program, savings in a 529 plan can help support their path.
Tax advantages
Every dollar you contribute to your 529 plan grows without federal taxes eating into your returns. When it's time to use those funds, you can withdraw them free from federal tax for qualified education expenses, such as tuition, required books and supplies. Tax-advantaged treatment applies to savings used for qualified education expenses. State tax treatment varies. 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.
Supporting learning from kindergarten through career
The money in a 529 savings plan isn’t limited to four-year universities. Community colleges, seminaries, trade schools or certain apprenticeship programs … any path the beneficiary chooses that involves professional training at an accredited institution could be eligible for tax-advantaged treatment in a 529 savings plan. Qualified education expenses include tuition, fees, books, supplies and equipment required for enrollment or attendance in a recognized postsecondary credential program, as well as fees for required testing or continuing education. Qualified education expenses also include expenses for fees, books, supplies and equipment required for the participation of a designated beneficiary in certain apprenticeship programs.
Additionally, funds can be used for expenses in connection with enrollment or attendance at an elementary or secondary public, private or religious school (kindergarten through 12th grade), including, but not limited to, tuition, curriculum materials, textbooks, instructional materials and online education materials, up to a maximum of $20,000 incurred during the taxable year per beneficiary.
Solutions for student debt and retirement planning
Your 529 plan goes beyond traditional education funding with two features that demonstrate its flexibility:
- Student loans: You can use up to a $10,000 lifetime limit per individual to pay toward the principal or interest of qualified student loans for a designated beneficiary or the designated beneficiary’s sibling.
- Retirement planning: Under certain circumstances, your beneficiary can roll over up to $35,000 from their 529 plan directly into a Roth IRA without taxes or penalties. Penalty-free rollovers can be made if the 529 account is more than 15 years old, and the amount to be rolled over must have been in the account for a minimum of five years. Rollover contributions must be within Roth IRA annual contribution limits and are reduced by any “regular” traditional or Roth IRA contributions made by the beneficiary in that year. Although the income limitations for regular Roth IRA contributions don't apply to 529-to-Roth rollovers, the beneficiary must have earned income of at least the amount being rolled over. This creates an incredible opportunity to jump-start retirement savings if education funding isn’t fully needed.
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.§
Low minimum investment
You can open an account for as little as $250 (the minimum investment per fund), but subsequent contributions can be as small as $50.** 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 diverse investment strategies. Learn more about how our investment professionals manage your money through The Capital SystemTM.
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Footnotes/Important information:
* As of December 31, 2025.
† Largest by assets, according to the 529 Quarterly Data Update, Fourth Quarter 2025 from ISS Market Intelligence. As of December 31, 2025, CollegeAmerica’s assets under management (AUM) was $109.0 billion.
‡ Source: Morningstar, as of November 10, 2025. Ratings are based on the following criteria: process, people, parent and price. Prior to 2020, the ratings' criteria were process, people, parent, price and performance.
§ 529 College Savings Quarterly Fee Analysis, Fourth Quarter 2025 from ISS Market Intelligence. CollegeAmerica’s fees were in the lowest fee tertile of the 31 national advisor-sold 529 plans and in the lowest fee quartile of the 28 national fee-based, advisor-sold 529 plans, based on the average annual asset-based fees that included CollegeAmerica's Class 529-A and 529-F-3 shares, respectively.
** The money market fund has a $1,000 minimum initial investment. All available funds have a $25 minimum if you participate in a CollegeAmerica employer-sponsored program.
Past results are not predictive of results in future periods.
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/or 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 Capital Client Group, 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 Commonwealth Savers.
Although target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met.
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.
Capital Client Group, 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.
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