Plan to Be Offered Throughout U.S. Beginning Next February
The Virginia College Savings Plan has partnered with American Funds to offer a new 529 program, it was announced today. The new plan, known as CollegeAmerica(SM), will be available across the U.S. beginning in February of next year.
The plan will offer six of the firm's funds, including the Investment Company of America, the Growth Fund of America, EuroPacific Growth Fund, American Balanced Fund, the Bond Fund of America and the Cash Management Trust of America. Investors can also choose an option that automatically moves assets between funds as students approach the age when they will attend college.
529 programs allow families to save for college by investing in mutual funds and other investment vehicles tax free and are offered through independent state agencies across the U.S.
The CollegeAmerica(SM) program is the third college savings plan offered by the state of Virginia. The state also offers the Virginia Education Savings Trust(SM), also available nationally, and the Virginia Prepaid Education Program, which requires that either the product owner or beneficiary be a Virginia resident.