Michigan looks to add a broker-sold 529
Michigan has issued a Request For Proposal (RFP) for firms interested in managing the state's new adviser-sold 529 plan. The contract will be for a five-year term beginning October 1, 2008. The state has indicated a preference for a multi-managed investment platform and an emphasis on in-state marketing. The bid due date is June 26, 2008.
Legislation has been enacted in Michigan to create a broker-sold 529 plan (H.B. 5138). Currently, the state offers a direct-sold 529 savings plan and a prepaid tuition plan.
The reason cited for the legislation was that many Michigan residents were enrolling in aggressively-marketed broker-sold 529 plans from other states. A broker 529 plan available from the state of Michigan would allow residents to receive the assistance of a financial adviser and still take advantage of the Michigan income tax deduction for contributions to a Michigan 529 plan.