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Michigan Education Savings Program (MESP)

4 / 5

Our rating

Best MI resident benefits

MI resident benefits

The Michigan Education Savings Program is similar to other TIAA-managed 529 savings programs. The Program features an enrollment year option, six multi-fund options, five single fund options and a principal protection option.

Michigan Education Savings Program (MESP)High Honors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

2000

State agency

Michigan Department of Treasury

Tax deduction

For single filers: $5,000/yr per beneficiary

For joint filers: $10,000/yr per beneficiary

Program manager

TIAA-CREF Tuition Financing, Inc.

Program distributor

TIAA-CREF Individual & Institutional Services, LLC

Manager contract term

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, UGMA/UTMA custodians, estates, trusts, 501(c)(3) organizations, corporations, and state or local government agencies and instrumentalities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Michigan's 529 plan for the same beneficiary reach $500,000.

Minimum contributions:

$25, or $15 per pay period via payroll deduction.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

SPONSORED

Other great plans to consider

You are not limited to your own state's 529 plan, so compare the plan and tax benefits offered by your state to other options. Here are some plans that are available to residents of any state and have earned awards in our 529 Plan Ratings:

Investment Options

Investors in Michigan Education Savings Program (MESP) can select from the following investment options. Click on a portfolio name for more information.

The Enrollment Year Investment Option contains 10 portfolios of underlying mutual funds. The asset allocation of the money invested in these investment options is automatically adjusted over time to become more conservative as the number of years to enrollment for the student decreases. Except for the In School Portfolio, each Enrollment Year Investment Portfolio's investments in its underlying funds and a funding agreement are assessed and rebalanced on a quarterly basis by the program manager.
PortfolioE.R. % Equity1yr performance
2026/2027 Enrollment Option0.08%27.46%5.19%
2028/2029 Enrollment Option0.09%40.2%6.01%
2030/2031 Enrollment Option0.1%54%6.57%
2032/2033 Enrollment Option0.1%64%6.73%
2034/2035 Enrollment Option0.1%70%6.8%
2036/2037 Enrollment Option0.11%74%6.9%
In School Option0.07%13.95%4.52%
2038/2039 Enrollment Option0.11%78%6.93%
2040/2041 Enrollment Option0.11%80%7.01%
2042/2043 Enrollment Option0.11%0%N/A

Age-based/Enrollment Year investment options:

The Enrollment Year Investment Option contains 10 portfolios of underlying mutual funds. The asset allocation of the money invested in these investment options is automatically adjusted over time to become more conservative as the number of years to enrollment for the student decreases. Except for the In School Portfolio, each Enrollment Year Investment Portfolio's investments in its underlying funds and a funding agreement are assessed and rebalanced on a quarterly basis by the program manager.

Static investment options:

Select among 6 multi-fund options, five single fund options and a guaranteed option.

Underlying investments:

TIAA-CREF, Vanguard, Schwab and iShares funds. 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).

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.02% manager fee plus 0.025% state fee. No fee for the Principal Plus Interest Option.

Expenses of the underlying investments:

0.02% - 0.09%. None for the Principal Plus Interest Option.

Total asset-based expense ratio:

0.06% - 0.13%. None for the Principal Plus Interest Option.

Taxes and other Benefits

Tax deduction for single filers:

$5,000/yr per beneficiary

Tax deduction for joint filers:

$10,000/yr per beneficiary

Program match on contributions:

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.

State tax deduction or credit for contributions:

Contributions to a Michigan 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.

Calculate your Michigan 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a Michigan 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

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.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

State tax treatment of qualified distributions:

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.

State tax treatment of rollovers:

Michigan follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, institution and beneficiary jointly, or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

Contact

Telephone:

1-877-861-6377

A good place to start:

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