Michigan Education Savings Program (MESP)

How "state-of-the-art" is this 529 plan? What extra features does it provide for the benefit of its participants? Among the features we look for are investment menus covering the full range of investor risk; the ability of the plan to hire and fire investment managers or replace their underlying mutual funds; creditor protection under the sponsoring state’s laws; FDIC-insured options; purchase rewards programs; other participant perks; and minimum and maximum contribution restrictions.

No one likes unpleasant surprises, and here we look for the warning signs. We assign a rating to the 529 plans based on many considerations including industry experience of the outside program managers; plan popularity; risk of plan upheaval; quality of program disclosures and other materials; state due diligence practices; investment reporting; flexibility to make account changes; withdrawal restrictions; and rollover procedures.

The Resident 5-Cap Rating may be higher than the Non-Resident 5-Cap Rating if the 529 plan or the state offering it provides special benefits to residents of the state. These benefits might consist of a state tax deduction or credit for contributions to the plan that are not available for contributions to an out-of-state 529 plan; a matching contribution program; a break on fees and expenses; an advantage in computing eligibility for state-funded financial aid programs; or any other potentially valuable advantage.