Page 93 - Benefits Summary 2018-2019 b_Neat

Virginia College Savings Plan SM

A valuable new employee benefit: CollegeAmerica®

For many, saving for the higher-education expenses of those
they care about is a crucial goal. That’s why your employer
is working with a financial adviser to help bring that goal
within reach through CollegeAmerica, a 529 college savings
plan. Sponsored by Virginia College Savings Plan and available

nationwide, CollegeAmerica allows you to save for college by
investing after-tax dollars in one or more of 25 American Funds.

Key benefits of a CollegeAmerica 529 account

• Earnings in the account can grow free from federal and state • You can save for anyone — your child or step-child, grandchild,
taxes, and withdrawals are free from federal tax if used for niece or nephew, spouse, a friend, or even yourself. You may also
qualified higher-education expenses. change the beneficiary to another member of the beneficiary’s
family without penalty.
• No sales charge. By investing through an employer-sponsored
plan, you pay no sales charges. • You control the account, which means you decide on the
amount and timing of withdrawals. You can change your
• Assets may be used for many types of higher education, account’s investment mix once a year and when you change
including undergraduate and graduate school, community the beneficiary.
college, and technical and professional training. Tuition, room
and board, and certain other required books, supplies, fees and • Portfolios customizable to your needs. When creating a portfolio
expenses are all qualified higher-education expenses. appropriate for your financial plan, you and the adviser can
select one or more of the 25 American Funds available in
• There are no income limits, so 529 accounts are available to CollegeAmerica. As the beneficiary gets closer to college, the
people of all income levels.
adviser can help you adjust your investment mix once a year to
meet your needs.

Other important information about CollegeAmerica and 529 savings plans

• CollegeAmerica is available in all 50 states and the District • Your 529 college savings plan holdings could reduce your
of Columbia. beneficiary’s ability to qualify for grants and student loans.
• If you withdraw money from a 529 college savings plan for • Some states give taxpayers a deduction or credit on their state
purposes other than higher education, your earnings will be tax bills for contributions to 529 savings plans sponsored by
subject to federal income tax and possibly a 10% federal their state. Depending on your state of residence, there may
tax penalty. be an in-state plan that provides tax and other benefits not
available through CollegeAmerica. Talk to your tax adviser. Lit. No. CAERFL-001-0811O CGD/9318-S29878 © 2011 American Funds Distributors, Inc.

To learn more about CollegeAmerica, visit americanfunds.com/529. To begin saving with CollegeAmerica,
contact your benefits administrator.

Invest ments 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 the investment objectives, risks, charges and expenses of the American Funds and CollegeAmerica.
This and other important information is contained in each fund's prospectus and summary prospectus 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.
®