Yes, funds withdrawn from an account for any purpose other than the payment of eligible costs by or on behalf of a qualified beneficiary are subject to a penalty equal to 10% of the amount withdrawn unless certain narrow exceptions apply.
Scammers are contacting taxpayers while pretending to be from the Michigan Department of Treasury, using out‑of‑state phone numbers. They may request payments or attempt to trick you into providing your bank account information. Always verify the source before sharing any personal or financial details.