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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.
In Savingforcollege.com's latest quarterly rankings, this plan ranked in the top 10 for 1-year, 3-year, 5-year and/or 10-year performance.
Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)
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Access enrollment materials and open an account with Michigan Education Savings Program in just a few easy steps.Enroll Now
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees. If there is no tax break offered for in-state investors ... shop around!
Also, the plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
Michigan Department of Treasury
TIAA-CREF Tuition Financing, Inc.
TIAA-CREF Individual & Institutional Services, LLC
Through March 31, 2017.
U.S. citizens and resident aliens, UGMA/UTMA custodians, estates, trusts, 501(c)(3) organizations, corporations, and state or local government agencies and instrumentalities.
Accepts contributions until all account balances in Michigan's 529 plan for the same beneficiary reach $500,000.
$25, or $15 per pay period via payroll deduction.
The Age-Based Option is offered in 3 different risk levels (Aggressive, Moderate, and Conservative), each containing 9 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age and later reassigned to more conservative portfolios as the beneficiary approaches college age.
Select among 4 multi-fund options (the International Equity Index Option, the Global Equity Index Option, the 100% Fixed Income Option, and the Balanced Option), the U.S. Equity Index Option and the Principal Plus Interest Option
TIAA-CREF institutional mutual funds and one Vanguard index fund. The Principal Plus Interest Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and a minimum annual rate (actual rate is declared annually).
Click here, you need Microsoft Excel to open this document.
Click here to visit, link to the program website containing most current performance data.
Fees & Expenses
0.02% manager fee plus 0.05% state fee. No fee for the Principal Plus Interest Option.
0.05% - 0.17%. None for the Principal Plus Interest Option.
0.12% - 0.24%. None for the Principal Plus Interest Option.
Taxes and other Benefits
Michigan matching grants based on MESP contributions were discontinued for the 2009-2010 year. In prior years, a Michigan resident with adjusted gross income of $80,000 or less and a beneficiary under seven years old could apply for a one-time matching grant of $1 for every $3 contributed, up to a maximum $200 grant.
Contributions to a Michigan's 529 savings plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing Michigan taxable income. Contributions must be reduced by qualified withdrawals during the year for purposes of determining the amount that may be deducted. Rollover contributions are not deductible, according to the Michigan Department of Treasury. Contribution deadline is December 31.
nvestment time horizon:
18 yrs (i.e. newborn): 0.18% annualized
10 yrs (i.e. 8-yr old): 0.33% annualized
2 yrs (i.e. 16-yr old): 1.68% annualized
Based on 4.25% MI tax rate. (For assumptions see 529 State Tax Calculator.)
The principal portion of nonqualified withdrawals from this plan are included in Michigan taxable income to the extent of prior Michigan tax deductions. Qualified rollovers are not subject to recapture.
Qualified distributions from Michigan and non-Michigan 529 plans are exempt. Also excluded are distributions made due to the beneficiary's death, disability, scholarship, or attendence at one of the U.S. military academies.
Michigan follows federal tax-free treatment.
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Distributions & Terminations
Eligible educational institution, beneficiary, institution and beneficiary jointly, or account owner, as directed by the account owner.
Accepts requests to transfer account ownership.
Documents, Access & Reporting
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