Frequently Asked Questions

A: The CollegeAccess 529 (National Advisor Sold Plan) offers a total of 24 investment options:

• 9 Age-Based Investments – These portfolios automatically adjust as the beneficiary grows older. The portfolios are primarily invested in return generating assets when the beneficiary is younger and in more defensive assets as the beneficiary grows older.
• 3 Static Investment Portfolios – These portfolios is made up of a variety of underlying mutual funds that do not adjust based on the beneficiaries age. Clients can use these portfolios to adjust the risk associated with their Age-Based option or Individual Investment portfolios.
• 12 Individual Investment Portfolios – These portfolios allow clients to invest directly in one of 12 underlying mutual funds from the following fund families: Virtus Funds, Pacific Investment Management Company LLC (PIMCO), Metropolitan West Funds, Dodge and Cox Funds.

For additional information surrounding the portfolios offered, please see the Plan Disclosure Statement.

The CollegeAccess 529 Direct Plan for South Dakota residents offers a total of 12 investment options:

• 9 Age-Based Investments – These portfolios automatically adjust as the beneficiary grows older. The portfolios are primarily invested in return-generating assets when the beneficiary is younger and in more defensive assets as the beneficiary grows older.
• 1 Static Investment Portfolio – This portfolio is made up of a variety of underlying mutual funds that do not adjust based on the beneficiaries age. Clients and their financial professionals can use these portfolios to adjust the risk associated with their Age-Based option or construct their own allocation.
• 2 Individual Investment Portfolios – These portfolios allow clients to invest directly in one of two underlying mutual funds.

For additional information surrounding the portfolios offered, please see the Plan Disclosure Statement.

A: Account Owners may allocate each contribution to one of several different classes of units in the selected Investment Portfolio(s), each of which has a different fee structure. The following Classes are available.

For all residents, regardless of location:

• Class A Units (with an initial sales charge)
• Class A Units (load waived for fee-based advisors or Company-sponsored Plans)

Note: Trail paid to broker, but no commission or "finder's fee" applies.

• Class C Units¹ (asset-based sales charge)
• Class F Units²

For South Dakota Residents:

• Class SD-A Units³ (w/ initial sales charge)
• Class SD-A Units³ (load waived for fee-based advisors or Payroll Deduction Plans)

Note: Trail paid to broker, but no commission or "finder's fee" applies.

• Class SD-C Units³ (asset-based sales charge)
• Class SD-D³ (no sales charge)

For more information on the share classes please read Understanding the Classes Available in the CollegeAccess 529 Plan .

¹ Maximum allowable purchase of Class C and SD-C Units is $499,999.
² Class F Units will only be available through an Account established with a financial professional that has entered into an agreement with the Program Manager to offer Class F Units.
³ Classes SD-A, SD-C and SD-D are available only for Account Owners and/or beneficiaries who reside in South Dakota.

A: You may reallocate the existing assets in your Account to one or more other Investment Portfolios twice every calendar year. Alternatively, you may reallocate your investment options whenever you change the Account’s Designated Beneficiary.

A: The Age-Based Investment Portfolios offer a diversified group of nine Investment Portfolios designed to emphasize total return (and particularly capital appreciation) when the Designated Beneficiary of an Account is younger and increasingly emphasizes preservation of capital and income as the Designated Beneficiary approaches and reaches college age (presumed to be at age 18).  The Age-Based options automatically adjust over time as your beneficiary ages, shifting from a larger weighting in return-generating investments towards a more significant weighting in defensive investments.

If you are invested in an Age-Based option, you do not have to do anything as your portfolio will automatically be shifted to the next portfolio.

A: Please refer to the appropriate Plan Disclosure Statement for additional information surrounding each underlying mutual fund.

• National Advisor Sold Plan - Plan Disclosure Statement
• Direct Plan (SD Residents Only) - Plan Disclosure Statement

A: The percentage allocations and mutual funds in which the Investment Portfolios are invested (the "Underlying Funds") are subject to change from time to time in accordance with the Investment Policy.

A: To obtain detailed information surrounding the performance of the portfolios offered in the CollegeAccess 529 Plan, click on the performance tab located at the top of this page.

A: Additional Investment Portfolios may be established in the future. At the time you establish an Account, and at any time a subsequent contribution is made to the Account, you may select one or more of the Investment Portfolios and designate what portion of the contribution should be invested in each selected Investment Portfolio.

A: The Program does not guarantee that your Account will increase in value or achieve any rate of return, or that your Account will not decrease in value, or that the assets in your Account will be sufficient to pay the qualified education expenses of your Designated Beneficiary.

A: Any earnings on the money you invest in your Account will not be subject to federal income taxes before they are distributed. Any amounts in the Account that are withdrawn to pay for the Designated Beneficiary’s qualified education expenses will not be subject to federal income tax. Qualified education expenses include tuition, fees, room, board, books, equipment, and other supplies.

529 Plan Account Owners can withdrawal assets to pay for K-12¹ tuition (public, private, or religious) up to $10,000 per year per beneficiary.

Always consult a tax professional; K-12 withdrawals may be subject to specific state laws.

A: No. Contributions are not tax deductible on a federal level.

A: There is one potential federal income tax disadvantage to the Program. Any earnings on your Account that are subject to federal income tax upon withdrawal (e.g., earnings withdrawn but not used to pay qualified education expenses) will be taxed to the Account Owner or Designated Beneficiary as ordinary income, rather than as capital gains, and may be subject to a federal 10% additional tax, if not used to pay for the Designated Beneficiary's qualified education expenses or otherwise exempted from such additional tax.

Earnings withdrawn for payment of one Designated Beneficiary's qualified education expenses generally are not excludable from gross income to the extent other federal tax credits and incentives are used for the same expenses. You are encouraged to consult your accountant, financial or tax professional for a better understanding as to how the specific application of these tax rules apply to your particular circumstances.

A: Normally, a gift of more than $17,000 to a single person² in one year is subject to federal gift tax. With the Program, an individual can potentially contribute up to $85,000³ (and married couples electing to split gifts can potentially contribute up to a total of $170,000) to an Account for a particular Designated Beneficiary in one year without triggering the tax. To do this, the contributor must elect to treat the entire gift as a series of five equal annual gifts. The five-year prorating is elected by filing a gift tax return for the year in which the gift is made. You should consult with a tax advisor regarding the gift and estate tax consequences of contributing to (or making any other transaction with respect to) an Account.

A: The CollegeAccess 529 Plan is open to any U.S. citizen or resident alien. In order to establish an Account, you must have a valid Social Security or other taxpayer identification number and must have a valid U.S. residential address that is not a post office box. There are no income restrictions or state residency requirements for the CollegeAccess 529 Plan.

A: You may open an Account for the benefit of any person who is a U.S. citizen or legal U.S. resident, with a social security or tax identification number, including yourself. Such person may be your child, your grandchild, your spouse, another relative, or even someone not related to you. The Designated Beneficiary may be of any age. However, the Designated Beneficiary must be an individual person.

A: Yes. Other people can also open their own Accounts for the same Designated Beneficiary. The maximum contribution limit for the plan is $350,000 per beneficiary.

A: No. The Beneficiary must have a Social Security or other taxpayer identification number.  If the Beneficiary does not have a Social Security number, you can open an Account with yourself as the Beneficiary and change the Beneficiary to your child at a later time.

A: You can change the Beneficiary on your Account at any time provided that the new beneficiary is an eligible “Member of the Family,” as defined in Section 529.  Under current law, a Member of the Family of a Designated Beneficiary is a person related to the Designated Beneficiary as follows:

• son or daughter, or a descendant of either (natural or legally-adopted);
• stepson or stepdaughter;
• brother, sister, stepbrother, or stepsister;
• father or mother, or an ancestor of either;
• stepfather or stepmother;
• son or daughter of a brother or sister;
• brother or sister of the father or mother;
• son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law;
• spouse of the Designated Beneficiary or of any of the other foregoing individuals; or
• first cousin of the Designated Beneficiary.

A: You can use the funds for the Designated Beneficiary's graduate or professional school expenses, designate a new beneficiary who is a member of the Designated Beneficiary's family or, subject to the imposition of federal income taxes and penalty, close the Account by withdrawing all the funds. You also may leave the Account open – indefinitely – until you determine the proper course of action. Note that the normal 10% federal penalty and tax on the earnings withdrawn and the obligation to add the deductions taken back into your South Dakota taxable income is not assessed if you terminate the Account because the beneficiary has died or is disabled, or if you withdraw funds not needed for college because the beneficiary has received a scholarship equal to or less than the amounts withdrawn.

A: Yes, you can change the Account Owner on an Account by completing the CollegeAccess 529 Change of Ownership Form.

A: The minimum initial contribution to open an Account is $1,000 ($250 for SD residents), with a minimum contribution of $250 per Investment Portfolio. The minimum applicable if you contribute through an automatic investment plan (A/K/A, "Auto-Invest") is $250 (per portfolio) – with a required minimum monthly contribution of $50. You may terminate your participation in the automatic transfer program only at such time as you have contributed $1,000 in total to the Account. If you contribute through a payroll deduction plan, there is no initial contribution required. A minimum monthly contribution of $50 is required.

A: The maximum balance limit in effect is currently $350,000. (This amount will be adjusted periodically.)

Federal income tax law applicable to the Program requires that the Program prohibit contributions in excess of what is necessary to provide for the qualified education expenses of the Designated Beneficiary. An additional contribution may not be made to your Account to the extent that the amount of the contribution, when added to the balance of all Accounts for the same Designated Beneficiary under the CollegeAccess Plan or any other 529 plan sponsored by the State of South Dakota, would exceed the maximum balance limit then in effect.

A: Account Owners will bear expenses at the Program level and also the expenses of investing in the underlying funds. For recent expenses of the underlying funds, please refer to the current Plan Disclosure Statement. Account Owners may select from among several available classes of units, each with a different fee structure. All fees and charges applicable are subject to change from time to time.

Asset-Based Fees. At the share class level, the Account may be subject to a program management fee ranging from 0.00% to 0.25% and certain other asset-based fees. Such fees paid by the Account are received by the Program Manager, and there are no additional fees payable to the Council or to the State of South Dakota. The asset-based fees noted below for each class of Units are accrued daily and paid to the Program Manager monthly.

	Unit Class
Servicing and Administrative Fee	A	C	F*
Equity & Fixed Income Portfolios	0.35%	0.35%	None
PIMCO Short Asset Investment & Ultrashort Bond Portfolios	0.10%	0.10%	None

 

	Unit Class
Servicing and Administrative Fee	SD-A**	SD-C***
Equity & Fixed Income Portfolios	0.35%	0.35%
PIMCO Short Asset Investment & Ultrashort Bond Portfolios	0.10%	0.10%

* Class F Units will only be available through an Account established with an Advisor that has entered into an agreement with the Program Manager to offer Class F Units.
**Class SD-A Units are available to South Dakota residents and employees of Allianz affiliates and approved service providers, regardless of their state of residency.
***Class SD-C and SD-D Units are available to South Dakota residents only.

Account Maintenance Fee. In addition to the Program expenses described above, each Account, unless certain conditions are met, will be subject to an annual Account Maintenance Fee of up to $20. This fee will be payable in installments of $5 on the last business day of each calendar quarter, based on the previous business day’s assets.

The annual Account Maintenance Fee will be waived if any of the following conditions are met: (i) the Account balance is equal to or exceeding $20,000 on the assessment date; (ii) an Account Owner has Accounts for one or more Designated Beneficiaries and the aggregate balance in those Accounts equals or exceeds $50,000 on the assessment date; (iii) the Account Owner or Designated Beneficiary is a resident of the State of South Dakota; (iv) the Account Owner is invested in either Class F, SD-A or SD-C Units; (v) the Account Owner is an employee of Allianz Global Investors of America L.P. or a company affiliated with Allianz Global Investors of America L.P.; (vi) the Account Owner is a broker who is affiliated with a Selling Institution with whom the Program Manager has a selling agreement; or (vii) the Account Owner has selected the Auto-Invest option to contribute at least $50 per month automatically to the Account (please see the Account application for details on the Auto-Invest option). Auto-Invest is an option available for investors making systematic deductions from a bank Account, and is not available for most payroll deduction contributions. If you have questions about whether Auto-Invest applies to your contributions, please ask your financial advisor for additional details. If the Account is subject to a fee, and there is more than one Investment Option in the Account, then the fee will be applied to the portfolios with the lowest Portfolio Number, pre-assigned by the Plan Transfer Agent.

Sales Charges. In addition to the asset-based fees and annual Account Maintenance Fee, Account Owners investing in Class A (subject to certain exceptions) will pay an initial sales charge, all or a substantial portion of which will be paid to the Selling Institution through which Account Owner makes the investment. Account Owners with Class C Units and certain Account Owners with Class A Units will pay a deferred sales charge (also called a redemption fee) on all withdrawals made within eighteen months of contribution. Accounts Owners invested in Class F Units are not subject to an initial sales charge, distribution fee or a deferred sales charge. However, you should expect to pay commission(s) and/or other forms of compensation to your Advisor with respect to Class F Units as provided in your agreement with your Advisor.

Class A & Class SD-A - Equity Fund Portfolios*
Amount of Contribution(s)	Initial Sales Charge (as a % of assets contributed)
$0 - $49,999	5.50%
$50,000 - $99,999	4.50%
$100,000 - $249,999	3.50%
$250,000 - $499,999	2.50%
$500,000 - $999,999	2.00%
$1,000,000 +	None

 

Class A & Class SD-A - Fixed Income Fund Portfolios**
Amount of Contribution(s)	Initial Sales Charge (as a % of assets contributed)
$0 - $99,999	3.75%
$100,000 - $249,999	3.25%
$250,000 - $499,999	2.25%
$500,000 - $999,999	1.75%
$1,000,000 +	None

 

Class A & Class SD-A - Ultrashort Bond & PIMCO Short Asset Investment Portfolios***
Amount of Contribution(s)	Initial Sales Charge (as a % of assets contributed)
$0 - $1,000,000 +	None

 

Class C & SD-C
	Deferred Sales Charge (as a % of assets contributed)
	Equity Fund Portfolios*	Fixed Income Fund Portfolios**	Ultrashort Bond & PIMCO Short Asset Investment Portfolios***
First 12 Months	1.00%	1.00%	0.00%

 

Class SD-D
Sales Charge (as a % of assets contributed)
Equity Fund Portfolios	Fixed Income Fund Portfolios	Ultrashort Bond & PIMCO Short Asset Investment Portfolios
None	None	N/A

 

Class F****
Sales Charge (as a % of assets contributed)
Equity Fund Portfolios	Fixed Income Fund Portfolios	Ultrashort Bond & PIMCO Short Asset Investment Portfolios
None	None	N/A

 

* Equity Fund Portfolios consist of the following: Age-Based Investment Portfolios 1 (Ages 0–8), 2 (Ages 9–10), 3 (Age 11), 4 (Age 12); Diversified Equity Static Investment Portfolio; Virtus Silvant Focused Growth, Virtus Global Allocation, Virtus NFJ Dividend Value, Virtus NFJ Small-Cap Value, and Dodge and Cox International Stock.

** Fixed Income Fund Portfolios consist of the following: Age- Based Investment Portfolios 5 (Age 13), 6 (Age 14), 7 (Age 15), 8 (Age 16) and 9 (Ages 17 and Over); Diversified Bond Static Investment Portfolio; Metropolitan West Total Return Bond, PIMCO All Asset, PIMCO Income, PIMCO Real Return, and PIMCO Stocks PLUS Absolute Return Fund.

*** Class A, SD-A, C and SD-C Unit purchases of the Ultrashort Bond or PIMCO Short Asset Investment Portfolios in which Account Owner did not incur an initial sales charge, and wishes to exchange into a different investment option, will then incur the initial sales charge of the Investment Portfolio being purchased through the exchange.

**** Account Owners invested in Class F Units are not subject to an initial sales charge, distribution fee or a deferred sales charge. However, you should expect to pay commission(s) and/or other forms of compensation to your Advisor with respect to Class F Units as provided in your agreement with your Advisor.

A: You (the "Account Owner") may open an Account by contacting any broker or financial professional authorized to place orders on your behalf for interests in the Trust (your "Financial Professional"). An Account is established by completing a (Program) Application Form – which is part of the Participation Agreement, and sending it together with a check to the Program's Transfer Agent (DST).

A: You cannot open an Account online.

A: The minimum additional contribution is $50 per portfolio.

A: You may send money by check directly to the address listed on the Account application, or ask your Advisor to do so, along with instructions on how to invest the contribution. You also may choose to make periodic contributions by automatic transfers from your bank Account.

A: For Accounts that are already established, you may send money by check payable to “CollegeAccess 529 Plan” directly to:

Regular Mail:

College Access 529
P.O. Box 534436
Pittsburgh, PA 15253-4436

Overnight Mail:

College Access 529
Attn. 534436
AIM:  154-0520
500 Ross Street
Pittsburgh, PA  15262

A: Yes. Anyone may make contributions to your Account(s), although the investment of the contribution will be directed in accordance with your instructions. Another contributor will not retain any control over, or rights to, his or her contribution (or any other portion of the Account) after the contribution is made. The other contributor will not receive any statements or other information with respect to the contribution or the Account. Any such contribution may have income, gift, estate or generation-skipping transfer tax consequences.

A: There is no limit to the number of accounts a participant or beneficiary may have. In fact, participants and beneficiaries may have multiple accounts in multiple states.

A: Yes, Account Owners and their Financial Professional can view current balances and recent transactions online. Click on the Account Access link at the top of this page to log on.

A: Yes. You may transfer funds from another qualified tuition program to your Account. In order to avoid federal income tax consequences, you must transfer such funds into the Account within 60 days after you have withdrawn the funds from the other qualified tuition program. In addition, the Designated Beneficiary of the Account to which the funds are transferred must be a person who is a member of the family of the beneficiary of the Account from which the transfer is made. You may also transfer funds from an Account in another qualified tuition program for the benefit of the same Designated Beneficiary without tax or penalty, so long as such transfer does not occur within 12 months from the date of a previous transfer to any qualified tuition program for the same Designated Beneficiary. Contact your financial or tax professional or the Plan Administrator for more information about how to complete such a transfer.

You also may transfer funds from your Account to an Account in another qualified tuition program established under Section 529. In order to avoid federal income tax consequences, you must transfer such funds into the Account within 60 days after you have withdrawn the funds from your Account. In addition, the beneficiary of the Account in the other qualified tuition program must be a member of the family of your Account’s Designated Beneficiary. You may also transfer funds to an Account in another qualified tuition program for the benefit of the same Designated Beneficiary without federal income tax consequences so long as such transfer does not occur within 12 months from the date of a previous transfer to any qualified tuition program for the same Designated Beneficiary.

A: Yes. You can use money from a Uniform Gifts/Transfers to Minors (UGMA/UTMA) account to open a CollegeAccess 529 Plan Account. Please keep in mind that you may incur capital gains taxes from the sale of the assets currently held in the UGMA/UTMA account.

Other restrictions may apply to these accounts. You should consult with your financial advisor or qualified tax professional before redeeming any assets from a UGMA/UTMA account.

A: You can use the money in the Account when needed to pay for the "qualified education expenses," as defined in Section 529 of the Internal Revenue Code of 1986 ("Section 529"), of the person who is the Designated Beneficiary of the Account.

A: In general, tuition, fees, room, board, books, equipment, and supplies necessary to attend an institution of education are considered qualified education expenses. Qualified education expenses also include expenses of a special needs beneficiary that are necessary in connection with his or her enrollment or attendance at a qualified education institution as defined in the Code.

529 Plan Account Owners can withdrawal assets to pay for K-12¹ tuition (public, private, or religious) up to $10,000 per year per beneficiary.

Always consult a tax professional, K-12 withdrawals may be subject to specific state laws.

A: You can withdraw all or any portion of the money in the Account at any time for any purpose. If you use the money for any other purpose, including paying for costs associated with a non-accredited institution, you will not qualify for favorable tax treatment, and the earnings portion of your withdrawal for such purpose will be subject to applicable federal and state income tax and an additional 10% federal tax.

A: You can still maintain and continue to your Account, regardless of where you live in the United States.

A: When you need to make a withdrawal, save time by doing it online!

• Access your account by selecting account access at the top of this site. If you are a first-time user, you will need to register by selecting “Get Online Access” at the bottom of the log in window.
• Choose which account and fund you wish to withdraw from and select “Trade.”

You can transfer money directly to the school, to your bank (if you have previously added your bank’s information to your account), or to your address of record by check.