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The Michigan Education Savings Program Celebrates College Savings Month with a Special Bonus Deposit Incentive for Families
September 08, 2023
In Michigan and throughout the country, September is recognized as College Savings Month. College Savings Month serves to remind families about the importance of saving for a child, grandchild or another loved one’s higher education while highlighting the value and flexibility of saving with a 529 college savings plan.
In honor of College Savings Month, the Michigan Education Savings Program (MESP), Michigan’s direct sold 529 college savings plan, is offering a special incentive to help families get started on their higher education savings journey with a bonus deposit.
MESP $100 Bonus Deposit
Individuals who open a new MESP account with a minimum initial contribution of $1,000 between Sept. 1 and Sept. 30, 2023, will be eligible for a $100 bonus incentive. For complete details, including terms and conditions about the bonus deposit, visit MIsaves.com/bonus.
How to Use MESP Funds
Funds saved with the Michigan Education Savings Program can be used for qualified higher education expenses at an eligible four-year university, two-year community college, trade school or graduate school. Account owners can use their MESP savings to pay for qualified higher education expenses, such as tuition, certain room and board expenses, fees, books, supplies and equipment required for the enrollment and attendance of a student.
Advantages of Saving with the Michigan Education Savings Program
MESP is a tax-advantaged investment, meaning contributions to an account may qualify for a Michigan state income tax deduction of up to $10,000 for married couples filing jointly or $5,000 for individuals filing single per year. Plus, account earnings grow tax-deferred, and withdrawals are tax-free at the state and federal level when used to pay for qualified higher education expenses.
An MESP account can be opened in as little as 15 minutes. The plan has no sales charges, enrollment fees, or annual account maintenance fees. In fact, MESP is the second lowest-cost 529 college savings plan in the nation and is one of only two plans in the nation to be rated GOLD by Morningstar!
“It is never too early or too late to begin saving for a child or loved one’s future education,” said Diane Brewer, executive director for MESP, “but with an incentive offer, it can be the perfect time to get started.”
About the Michigan Education Savings Program
For more than 20 years, MESP – Michigan’s direct sold 529 college savings plan – has been helping families save for qualified higher education expenses. This August, MESP surpassed $5 billion in qualified withdrawals for higher education expenses. Account owners can choose from 22 investment options, access to easy-to-use savings tools and take advantage of in-state tax benefits for Michigan taxpayers.
To learn more about the Michigan Education Savings Program, its investment objectives, risks, charges and expenses please see the Program Description at MIsaves.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributor and underwriter for the Michigan Education Savings Program. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds, or protection from creditors for investing in its own 529 plan. If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Consult your legal or tax professional for tax advice.