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Make the Most of College Savings Month
September 30, 2026
Michigan’s 529 Plans Make the Dream of a College Education Possible
LANSING, Mich. – With College Savings Month coming to a close, the Michigan Department of Treasury is reminding parents and guardians about the ways to save for a college education.
Through the Michigan Education Trust (MET) and the Michigan Education Savings Program (MESP) -- collectively known as 529 Plans – families are provided the opportunity to save for a child’s future education. These two plans offer different ways to save, with MET being a prepaid tuition savings program and MESP being a direct-sold investment savings plan.
“It’s really about finding the best way for you and your family to save for a college education,” said Chief Deputy Treasurer Lance Wilkinson. “If you want to lock in tomorrow’s tuition at today’s prices, MET is for you. MESP allows families to save dollars for college expenses with varying levels of risk and tax benefits. Many families find that participating in both MET and MESP meets their needs.”
MET is Michigan’s prepaid tuition savings program that allows parents and guardians to pay for future higher education at today’s price. MET will then pay out at future tuition costs. It’s specific to tuition and does not pay for room and board or books.
A MET can be opened for an individual with as little as $25. Additional contributions can be made as little as $25 at any time.
To get started with MET, go to www.SETwithMET.com.
MESP is a direct-sold investment savings plan where participants can save in plans with varying risk. Dollars from MESP can be used at any eligible college or trade school for tuition, mandatory equipment, fees, certain room and board costs, supplies and books.
To get started with MESP, go to www.misaves.com.
Both MET and MESP offer Michigan taxpayers three valuable tax benefits – a state income tax deduction on contributions, tax-deferred growth on earnings, and tax-free withdrawals when used for qualified high education expenses.
Individuals who work with a financial advisor can participate in the MI 529 Advisor Plan (MAP), which is Michigan's advisor sold 529 savings program.
In addition to Michigan’s 529 plans, families and guardians also have a new federal savings option, Section 530A accounts.
Commonly known as a “Trump Account,” this option is an investing account, like a traditional IRA, designed for children under 18 and can be used toward retirement, a first home, higher education and other expenses. Launched in July, parents, guardians and other authorized individuals can establish the accounts for their children.
The account is for a child who is under 18 by the end of the year the election is made and has a valid Social Security Number. A pilot program now provides $1,000 for children born from January 1, 2025, through December 31, 2028, who are U.S. citizens with a valid Social Security Number.
Families, friends and employers can contribute up to $5,000 per year per child in an investment account. Funds can be accessed without penalty when the child turns 18 for qualified expenses, like education or a first home purchase.
However, a portion of these accounts will be subject to taxation when money is withdrawn and may affect financial aid awards. Individuals should do their homework about the benefits before opening a 530A account.
To learn more about 530A accounts, go to www.trumpaccounts.gov.
By taking advantage of Michigan’s 529 plans and the new federal 530A program, families have more tools than ever to prepare for a child’s future.
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