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CollegeAmerica

4 / 5

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Best VA resident benefits

VA resident benefits

Virginia's CollegeAmerica is a nationally-available, advisor-sold 529 plan that makes available a line-up of target date fund portfolios, objective based multi-fund portfolios and individual mutual funds from American Funds through Class 529-A, 529-C, 529-E, 529-F-1, 529-F-2 and 529-F-3 shares To find a financial advisor in your area, use the Directory of Financial Professionals.

CollegeAmericaHigh Honors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2002

State agency

Commonwealth Savers Plan

Tax deduction

For single filers: $4,000/yr per beneficiary

For joint filers: $4,000/yr per beneficiary

Program manager

American Funds Service Company, American Funds Distributors, and Capital Research and Management Company

Program distributor

American Funds Distributors

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

The account must be used within 30 years after the beneficiary graduates from high school or within 30 years after opening the account, whichever is later.

Contributions

Maximum contributions:

Accepts contributions until all account balances in Virginia's 529 plans for the same beneficiary reach $550,000.

Minimum contributions:

The minimum initial contribution is $250 per fund ($1,000 for U.S. Government Money Market Fund), and the minimum subsequent contribution is $50 per fund. For an employer-sponsored program, the minimum contributions are $25 per fund.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan does not offer an online gifting portal allowing for easy sharing but may offer gift certificates or allow mail-in gift contributions.

Investment Options

Investors in CollegeAmerica can select from the following investment options. Click on a portfolio name for more information.

The Target-Based Portfolios contain 7 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. As each fund approaches its target date, it will increasingly emphasize income and preservation of capital by investing a greater portion of its assets in bond, equity-income and balanced funds, eventually investing principally in fixed-income funds and merging into the College Enrollment portfolio.
PortfolioE.R. % Equity1yr performance
American Funds College 2036 Fund0.79%69.01%6.31%
American Funds College 2039 Fund0.87%85.36%5.06%
American Funds College 2042 Fund0.85%94.96%4.26%
American Funds College 2027 Fund0.7%21.06%6.6%
American Funds College Enrollment Fund0.69%12%6.13%
American Funds College 2030 Fund0.71%37.05%7.23%
American Funds College 2033 Fund0.73%52.16%7.44%

Age-based/Enrollment Year investment options:

The Target-Based Portfolios contain 7 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the number of years to expected enrollment based on the age of the beneficiary or as selected by the account owner. As each fund approaches its target date, it will increasingly emphasize income and preservation of capital by investing a greater portion of its assets in bond, equity-income and balanced funds, eventually investing principally in fixed-income funds and merging into the College Enrollment portfolio.

Static investment options:

Select among various multi-fund objective based portfolios, U.S. Government Money Market or individual mutual funds from American Funds.

Underlying investments:

American Funds mutual funds.

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

None.

Program management fees:

All options except College Target Date Series and Portfolio Series:
0.16% to 0.65% (includes 0.06%% state administrative fee), plus distribution/servicing fee of 0.22% to 0.25% (Class 529-A), 1.00% (Class 529-C), 0.50% (Class 529-E), 0.25% (Class 529-F-1 including Money Market Fund), 0.00% (Class 529-F-2 and 529-F-3

College Target Date Series:
No management fee, 0.06% state administrative fee, plus distribution/servicing fee of 0.24% to 0.30% (Class 529-A), 1.00% (Class 529-C), 0.50% (Class 529-E), 0.25% (Class 529-F-1), 0.00% (Class 529-F-2 and 529-F-3

Portfolio Series:
No management fee, 0.06% state administrative fee, plus distribution/servicing fee of 0.23% to 0.25% (Class 529-A), 1.00% (Class 529-C), 0.50% (Class 529-E) or 0.25% (Class 529-F-1), 0.00% (Class 529-F-2 and 529-F-3

Expenses of the underlying investments:

Expenses of the underlying investments: Ranges from 0.01% to 0.15% (portfolio weighted average) in the age-based and static multi-fund portfolios. Other expenses range from 0.03% to 0.35%

Total asset-based expense ratio:

Class 529-A: 0.58% - 1.23%
Class 529-C: 0.68% - 2.01%
Class 529-E: 0.67% - 1.38%
Class 529-F-1: 0.68% - 1.20%
Class 529-F-2: 0.33% - 0.87%
Class 529-F-3: 0.30% - 0.82%

Broker loads and commissions:

Breakpoint pricing:

Does breakpoint pricing include non-529 assets under rights of accumulation policies

Taxes and other Benefits

Tax deduction for single filers:

$4,000/yr per beneficiary

Tax deduction for joint filers:

$4,000/yr per beneficiary

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to a Virginia 529 plan of up to $4,000 per account per year are deductible in computing Virginia taxable income, with an unlimited carryforward of excess contributions. Contributions are fully deductible in the year of contribution for taxpayers at least 70 years of age. Contributions from a non-owner are deductible by the account owner and not by the non-owner/contributor. Contribution deadline is receipt by the last business day of the year based on agency calendar.

Calculate your Virginia 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a Virginia 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

If an Account is cancelled for a reason other than the student's death, Disability, receipt of a scholarship (including attendance at a U.S. military academy), or Rollover to another Virginia529 account, any amount of the refund previously deducted from the Account Owner's Virginia taxable income as a result of Contributions to the cancelled Invest529 Account must be added back to the Account Owner's Virginia taxable income in the year the refund is received, in addition to any federal tax consequences.

State definition of qualified expenses

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

Qualified distributions from Virginia and non-Virginia 529 plans are exempt. Virginia also exempts distributions from a Virginia 529 plan attributable to the beneficiary's death, disability, or receipt of a scholarship.

State tax treatment of rollovers:

Virginia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Account owner, beneficiary, or eligible educational institution

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

Contact

Website:

https://www.americanfunds.com/college/collegeamerica.html

Telephone:

1-800-421-4225

Social Media

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