Answers to questions and step-by-step guidance on ...

CollegeAmerica?

Contributions 101

Adding Money to a

CollegeAmerica 529 Account

Answers to questions and step-by-step guidance on contributing

to a CollegeAmerica account

Who can contribute?

How do I contribute?

Anyone can pitch in to help a

CollegeAmerica account grow. That

means parents, grandparents, friends and

even the beneficiary.

The table on the back page shows four

different ways of contributing to a

CollegeAmerica account.

What is the minimum

contribution?

? $250 initial investment per fund.

Subsequent contributions are $50.

(The money market fund has a $1,000

minimum initial investment.)

? $25 minimum for contributions to

employer-sponsored accounts (which

can only be made through payroll

deduct or electronic transfers from

the account owner¡¯s bank).

ams a reality

make your dre

to pay

a: Helping to

can use the money

expenses. You

books,

to pay many

CollegeAmeric

room and board,

? Use assets

es ¡ª such as tuition,

eAmerica

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awals from a

ed savings. Withdr

and, in almost

from federal

? Tax-advantag

d

account are free

used for qualifie

529 savings plan

the money is

income tax if

all cases, state

ion expenses.

higher-educat

es ¡ª

for qualified expens

fees and expens

certain other

supplies and

United States.

throughout the

at schools

tax penalty in

addition to

to a 10% federal that provides tax and

plan

s will be subject

objectives,

ion, the earning ce, there may be an in-state

r investment

higher educat

carefully conside ry prospectuses and the

state of residen

es other than

ding on your

. Investors should

summa

g.

are used for purpos

before investin

income tax. Depen a. Talk to your tax adviser in the fund prospectuses,

If withdrawals

read carefully

Americ

applicable, state

contained

and should be .

federal and, if

le through Collegeimportant information is

al professional

diaries

s not availab

d from a financi

value.

ated interme

This and other

other benefit

can be obtaine ? and sold through unaffili

and expenses.

so they may lose

entity,

risks, charges, Program Description, which

utors

other

any

or

a

Funds Distrib

teed by a bank

CollegeAmeric is distributed by American

its of or guaran

a

CollegeAmeric

are they depos

, nor

not FDIC-insured

Investments are

Dream

big.

A gift of $

has been made to a CollegeAme

rica? 529 savings account.

contribution

On behalf of

beneficiary

From

Message

Phone

(

)

at eligible

designed to pay for qualified expenses

is a tax-deferred savings program

an

any of the American Funds. Such

to a CollegeAmerica account. CollegeAmerica

account or ownership interest in

that a contribution has been made

ownership of the CollegeAmerica

etc.

This gift certificate is to notify beneficiaries

has no value and does not represent

change beneficiaries or investments,

is not an actual share certificate,

beneficiary) can make withdrawals,

higher-education institutions. This

the account owner (rather than the

statement or stock certificate. Only

interest is reflected only on an account

Financial advisor

Is there a maximum

contribution?

? You can contribute up to $14,000 a

year ($28,000 if married) per beneficiary

or, under a special election, combine

up to five years¡¯ worth of contributions

into one contribution of up to $70,000

($140,000 for married couples) without

gift-tax consequences.1

? You can contribute until the account

value reaches $350,000.2

Can I transfer funds from other

college savings funds?

Transfers from these account types are

allowed: 3

¨C Coverdell accounts

¨C Certain U.S. savings bonds

¨C UGMA/UTMA accounts

¨C Other 529 accounts

A tool that makes

contributing easier

Let the beneficiary know

you¡¯ve made a gift

By calling (800) 421-4225, you can order

preprinted investment stubs that have

account information and investment

instructions. You can distribute them

to potential account contributors like

grandparents or godparents who can

then mail in a stub with a check.

An attractive CollegeAmerica

gift certificate can turn an account

contribution into a meaningful gift

that anyone can give to the beneficiary.

If you use the special election to give the maximum five-year amount, for example, and then give other gifts to the same individual during the

next four calendar years, you may face gift-tax consequences. There is a separate limit for each beneficiary. Tax issues can be complicated, so talk

to your tax advisor.

2

Account value includes assets in all programs administered by Virginia529: CollegeAmerica (direct and omnibus), CollegeWealth,? inVEST SM

and prePAID.SM

3

The rules governing such transfers are complicated, so talk to your financial and tax advisor(s).

1

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Four ways to contribute to a CollegeAmerica account

Instructions

1. Through

your financial

advisor

? Make the check payable to ¡°CollegeAmerica.¡±

For

account

owners

For family

& friends

Yes

Yes

Yes

Yes

Yes

No

Yes

No

? Write the beneficiary¡¯s account number in the memo line.

? Mail the check to the financial advisor for the account, along with instructions for

the investment.

2. Mail

? Make the check payable to ¡°CollegeAmerica.¡±

? Write the beneficiary¡¯s account number in the memo line.

? Mail the check to the American Funds service address for your region (see below), along

with instructions for the investment including the amount you¡¯d like to invest in each fund(s).

3. Online

? New users: You¡¯ll need an account number to set up your login at .

? Log in to complete the online FundsLink? setup process to link a bank account with the

CollegeAmerica account.

? From your Account Summary page, make a one-time contribution or set up automatic

contributions.

4. Phone

Call (800) 421-4225, Monday through Friday from 8 a.m. to 8 p.m. Eastern time, to make

contributions. If you haven¡¯t already linked your bank account, you¡¯ll need to follow these

steps first:

? Print a CollegeAmerica Account Options/FundsLink form from .

? Mail the completed form to the American Funds service address for your region (see below).

Contribution instructions are for accounts held directly with American Funds.

If you are a participant in a CollegeAmerica employer-sponsored plan, all contributions must be made either through your employer (payroll deduct)

or electronically (ACH) from your personal bank account.

Your location will determine where you send CollegeAmerica correspondence to American Funds.

(If you live outside the U.S., mail the form to the Indiana Service Center.)

Indiana Service Center

Virginia Service Center

American Funds

Service Company

P.O. Box 6273

Indianapolis, IN 46206-6273

American Funds

Service Company

P.O. Box 2713

Norfolk, VA 23501-2713

Overnight/express mail:

12711 N. Meridian St.

Carmel, IN 46032-9181

Overnight/express mail:

5300 Robin Hood Rd.

Norfolk, VA 23513-2430

Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available

through CollegeAmerica. Investors should carefully consider investment objectives, risks, charges and expenses. This

and other important information is contained in the fund prospectuses, summary prospectuses and the 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? and sold through unaffiliated intermediaries.

Lit. No. CACPFL-001-0814P Litho in USA

CGD/CIP/8254-S45027

? 2014 American Funds Distributors, Inc.??? Printed on recycled paper

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