Employer-sponsored CollegeAmerica® exchanges and rebalances
Get information about one-time and automatic exchanges and rebalances in employer-sponsored CollegeAmerica accounts.
Account exchanges
Yes, a one-time exchange or adding an automatic exchange plan is considered a strategy change. Once an automatic exchange plan has drafted, updating or removing the plan is also considered a strategy change.
Two strategy changes can be completed per owner/beneficiary combination per year. To learn more about what is considered a strategy change and how one can affect your clients’ taxes, review CollegeAmerica strategy changes.
Yes, multiple exchanges are considered a single strategy change if they are performed on the same calendar date.
The minimum amount for a one-time exchange is $50 per fund. If you are exchanging to a new fund, the fund minimum must be met:
- $1,000 for money market funds
- $250 for all other funds
The minimum amount for automatic exchange plans is $50 per fund. If you are exchanging to a new fund, the fund minimum must be met within 5 months. You can set up an automatic exchange plan to perform exchanges up to 4 days a month.
An automatic exchange plan can be set up to make exchanges based on a(n):
- Fixed dollar amount
- Annual percentage*
- Fixed percentage*
* This option cannot be requested online. Contact us to set up an exchange based on an annual or fixed percentage.
Exchanges from American Funds U.S. Government Money Market Fund initially purchased without a sales charge will be subject to the appropriate sales charge when the shares are exchanged into a Class 529-A share fund. Visit Share classes and breakpoints for additional information.
Account rebalances
The guidelines for a one-time rebalance or an automatic rebalance plan are:
- All funds have the same account number
- All funds have the same share class
- At least 1 fund’s value changes by 5% or more
- The rebalanced amount equals 100%
- If adding a new fund, the fund minimum must be met:
- $1,000 for money market funds
- $250 for all other funds
Note: American Funds U.S. Government Money Market Fund can be included in or excluded from the rebalance.
Yes, a one-time rebalance of shares or adding an automatic rebalance plan is considered a strategy change. Once an automatic rebalance plan has drafted, updating or removing the plan is also considered a strategy change. For more information, refer to CollegeAmerica strategy changes.
Automatic rebalance plans are established using one of the following schedules:
- Quarterly = March, June, September and December
- Semiannually = June and December
- Annually = December
Automatic rebalances will occur on the 20th of the months listed above.
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The guidelines and procedures provided in the Account Resource Center may not apply to networked accounts or accounts not directly held by American Funds. The guidelines and procedures provided also apply only to those retirement accounts or Coverdell ESAs invested in American Funds with Capital Bank and Trust Company (CB&T) as custodian. The guidelines and procedures provided in the Account Resource Center do not apply to plans held in our retirement plan solutions — PlanPremier, PlanPremier-TPA or RecordkeeperDirect. Information on the Account Resource Center may change periodically, and previously printed information may not be current. Please refer to capitalgroup.com for the most current information available.
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