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SOURCE American Funds
LOS ANGELES, June 25, 2014 /PRNewswire/ -- Saving for college just got a little easier with the announcement today by American Funds that it is waiving both the $10 account setup fee and the $10 annual account maintenance fee on CollegeAmerica®, its 529 college savings program, effective July 1.
"While Morningstar has already identified CollegeAmerica fees as among the lowest in the 529 industry, we are reducing them even further," said Kris Spazafumo, senior manager of 529 plans at American Funds. "Together with our previously announced reduction in administrative fees, waiving the account setup and maintenance fees will provide meaningful savings to CollegeAmerica investors."
Since its introduction in 2002, CollegeAmerica has grown to become the nation's largest 529 college savings plan, with assets approaching $50 billion. CollegeAmerica is able to reduce its administrative fees as the amount of assets it manages increases.
"We are very gratified that Virginia529 has demonstrated its confidence in CollegeAmerica by extending our partnership in this manner," Spazafumo said. "This extension is a real testament to the value our organizations have created together."
"2014 has been an exciting year for Virginia529," said Mary Morris, Chief Executive Officer of Virginia529 College Savings Plan. "We recently surpassed $50 billion in assets, with more than three-quarters of those coming from our partnership with American Funds. This size, which makes Virginia529 the largest 529 plan nationwide, gives us the ability to reduce fees so that our investors can earn more on their savings. We also really appreciate the unique longevity and stability of our relationship with American Funds and were glad to continue offering that to our customers," Morris said.
That long-standing relationship is set to continue, Spazafumo said noting that American Funds and Virginia529, the state sponsor of CollegeAmerica, have agreed to extend the contract between the two organizations until the year 2040.
CollegeAmerica, which is offered through American Funds, is the 529 plan of choice for more than 100,000 advisors and more than one million families nationwide. Additional information is available at (appropriate webpage) or by calling (800) 421-9900.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus, summary prospectus 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.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Chuck Freadhoff (213) 486-9988, firstname.lastname@example.org
Tom Joyce (213) 615-0514, Tom.Joyce@capgroup.com
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