Michigan bill would permit tax deduction to continue following a withdrawal

Michigan bill H.B. 5534 would permit a deduction for contributions to the Michigan Education Savings Plan made after a withdrawal from the account. Under current rules, deductions are no longer allowed in the year a withdrawal is made or in subsequent years. The amendment would provide that net contributions (contributions in a year less withdrawals during the year) remain eligible for the Michigan state income tax deduction. Technical changes would also be made to the deduction recapture rules.
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