Michigan 529 Plan

As college costs continue to rise, it is important to protect your child’s future and invest in a plan that ensures that they can afford the higher education that they deserve. Fortunately for Michigan residents, the state provides a few college savings investments that not only grow tax deferred, but may offer tax benefits and savings as well. Michigan provides two 529 plans, both with their unique advantages. Parents can choose between the Michigan Education Trust (MET) and the Michigan Education Savings Program (MESP). Both plans serve as a solution for parents in regards to financing their children’s higher education.

Need help deciding on which Michigan 529 plan is best for your family? Contact a Financial Planning Professional at Cranberry Lake Financial to help you with all your Michigan 529 Plan needs!

529 College Plans may differ from state to state. Research the differences between the following:

• Florida 529 Plan
• Ohio 529 Plan
• 529 College Plan

 The Michigan Education Trust (MET) is a state pre-paid tuition plan - the first of its kind in the United States. It covers tuition costs at state colleges and universities. The plan has a variety of great benefits including flexibility and portability. The MET is an investment that cannot be wasted because all funds are refunded in the event that the student does not wish to go to college. Additionally, it can be transferred to a sibling or other close relative if the student forgoes college or receives a full scholarship. Even more, an account holder can deduct the paid contract amount from their Michigan income tax.

The Michigan Education Savings Program (MESP) opened in 2000 and is run by the state treasurer and by the nationally recognized financial services organization TIAA-CREF. Like other state college savings plans, the MESP offers a variety of ways to invest including in stock mutual funds, bond mutual funds, and money market funds. Unlike the MET, it also pays for all college-related expenses including books and room and board anywhere in the United States. Additionally, contributions made by account holders are eligible for Michigan income tax deductions and may also earn a $200 match by the state for all qualifying MESP beneficiaries. However, they are not deductible for federal income tax purposes.

Both savings plans offer a method to provide for your child’s education in a manner that is financially sound and without much risk. Consult with a knowledgeable financial planning professional for further details concerning either plan.