Michigan 529 Plan
Michigan offers two 529 college savings plans, a direct-sold
plan called Michigan Education Savings Program and a pre-paid
tuition plan called Michigan Education Trust.
Michigan Education Savings Program
Michigan Education Savings Program is a traditional 529 plan
that allows you to invest money today and reap tax benefits
when you withdraw it to pay for qualified education
expenses.
Type: Direct – this Michigan 529 plan
can be purchased directly through the state.
Fund Family: TIAA- Cref
Minimums: To get started you can
deposit $25 unless you choose to use the automatic payroll
deduction method. With this option, you can open an account
with $15. Minimum subsequent contributions are $25 and $15 with
payroll deduction.
Maximum Contributions: Currently, you
can contribute up to $235,000 to your Michigan 529 plan.
Of course, your total amount in the plan can be higher as your
investments group. 529 plans typically increase the
contribution limit over time, so you may be able to contribute
more.
Tax Benefits: Good news for Michigan
residents - by investing in your state's 529 plan, you can
deduct up to $5,000 on your state income taxes for single filer
and $10,000 for married filers. You also get the same
benefit for federal income taxes. Out-of-state
participants still get the federal tax benefits.
Other Benefits: For Michigan
residents, a matching grant applies. The state will
provide $1.00 of matching funds for every $3.00 of
contributions to the account with a maximum of $200 per
eligible beneficiary.
Residency: Michigan Education Savings
Program is open to all United States residents, not just those
in Michigan.
You can learn more about this Michigan 529 plan at the
official website http://www.misaves.com/.
Michigan Education Trust
Michigan also offers a pre-paid tuition plan that lets you
lock in today's rates for college. It can be used
at any Michigan public university or college. However,
private college expenses will be prorated and may not be fully
covered.
For more information about Michigan Education Trust visit
the official website http://www.michigan.gov/setwithmet.
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