Michigan 529 Plan
Michigan offers two 529 college savings plans, a direct-sold plan called Michigan Education Savings Program and a pre-paid tuition plan called Michigan Education Trust.
Michigan Education Savings Program
The Michigan Education Savings Program is similar to other TIAA-managed 529 savings programs. The Program features an age-based option, four multi-fund options, a single fund option and a principal protection option.
The Michigan Education Savings Program (MESP) is a state-sponsored, tax-advantaged 529 college savings plan that’s helping families and individuals plan for the cost of higher education. It’s available to any citizen or tax payer. And just about anyone can help contribute including Grandparents, other family members and friends.
A 529 college savings plan helps you save more over time. Any earnings grow free from federal tax, and many states offer a state income tax deduction or tax credit for contributions. Limitations apply. As a 529 Plan, MESP also offers certain gift and estate tax planning benefits; consult your tax advisor. And withdrawals are tax-free at both the federal and state level when used for qualified higher education expenses.
MESP is administrated by the State of Michigan, acting by and through the Michigan 529 College Savings Board.
Type:Direct – this Michigan 529 plan can be purchased directly through the state.
Fund Family: TIAA-Cref
Tax Benefits:Michigan residents – by investing in your state’s 529 plan, you can deduct up to $5,000 on your state income taxes for single filer and $10,000 for married filers. (Amounts transferred from another 529 plan aren’t eligible for the deduction.) You also get federal income tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal tax benefits.
You can learn more about this Michigan 529 plan at the official website http://www.misaves.com/.
Michigan Education Trust (MET)
MET is a 529 Prepaid Tuition Plan which allows for the pre-purchase of tuition based on today’s rates and then paid out at the future cost when the beneficiary is in college. Performance is often based upon tuition inflation.
MET allows parents, grandparents, businesses and others to pre-purchase undergraduate tuition for a child residing in Michigan at any Michigan public university or college, including 28 public community colleges.
SET WITH MET
Saving for college is simple if you’ve got Michigan Education Trust (MET). MET helps you save on college tuition by buying college credits at today’s price. With MET you avoid rising tuition rates, which are expected to more than double over the next 10 years
You can learn more about this Michigan Education Trust plan at the official website http://www.michigan.gov/setwithmet/