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FOR IMMEDIATE RELEASE
Sept. 5, 2024
Contact: Ron Leix, Treasury, 517-335-2167
LANSING, Mich. - September may be back to school for many families, but did you know it’s also College Savings Month? Celebrated throughout September, College Savings Month aims to encourage families to save for higher education and learn about the benefits of a 529 plan.
If you haven’t started saving for your loved one’s college or career training yet, that’s okay! This is a great time to plan. In honor of College Savings Month, the Michigan Education Savings Program (MESP) is sharing six tips to help Michigan families get started on a college savings path.
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Open an MESP account – MESP, Michigan’s direct sold college savings program allows Michigan families to save for higher education while taking advantage of exclusive tax savings. Michigan taxpayers may receive a state income tax deduction from their MESP 529 account contributions (up to $10,000 for married couples filing jointly). Additionally, earnings grow tax-free when savings are used for qualified higher education expenses including tuition, books, certain room and board expenses, computers, and more.
Funds can be used at eligible universities, community colleges, technical or trade schools, and professional schools nationwide and abroad.
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Start Saving Now – It is never too early or too late to start saving for a student’s future higher education expenses. While families are strongly encouraged to open a 529 account when a child is born, you can also consider doing so at other exciting milestones, like kindergarten registration or the start of middle school. Just remember, the earlier you start saving, the more time your money has to potentially grow and benefit from compound earnings.
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Invite Gifting – College Savings Month can be celebrated by anyone! Grandparents, aunts and uncles, or family friends can join in by helping to save for a child’s education. Instead of the latest toy or game, invite people to contribute to a loved one’s MESP account. Gifting is perfect for birthdays, holidays, graduations, and other special occasions. To learn more about MESP’s Ugfiting platform, visit Gifting.
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Encourage Student Contributions – Is your student old enough to have a summer job or earn an allowance for household chores? Consider encouraging them to contribute to their 529 account. Even a small amount can create a shared sense of responsibility and a better understanding of the sacrifice being made on their behalf.
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Consider Recurring Payroll Contributions – Starting early can be the first key to successful savings. But the second is to contribute to your goal consistently over time. A great way to do this is by setting up payroll direct deposit to your 529 accounts in any amount that fits your budget – even $25 per paycheck can add up over time!
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Boost your savings with Upromise – Upromise is a free service that helps families save for college with cash back rewards from everyday activities such as online shopping, dining, grocery shopping, etc. For more information, visit: https://www.misaves.com/program/upromise
This September, as students start another year in the classroom, celebrate them with College Savings Month! You can help set them on the path to achieving their higher education goals with an MESP 529 account.
For more information about MESP and to open an account, visit MIsaves.com, or follow us on Facebook.
About MESP
For almost 25 years, the Michigan Education Savings Program – Michigan’s direct-sold 529 college savings program – has been helping families save for higher education expenses. Account owners can choose from multiple investment options, access easy-to-use savings tools, and take advantage of in-state tax benefits for Michigan taxpayers.
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.
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!
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Program Administrator, Michigan Department of Treasury. To learn more about the Michigan Education Savings Program, its investment objectives, risks, charges and expenses see the Program Description at MIsaves.com before investing. 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. Prior to investing, 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.
All social media platforms are managed by the State of Michigan.
1ISS Market Intelligence 529 College Savings Fee Analysis 2Q 2024. MESP’s average annual asset-based fees are 0.10% for all portfolios compared to 0.51% for all 529 plans.
Upromise is an optional service, separate from the Michigan Education Savings Program, and not affiliated with the state of Michigan or TIAA-CREF Tuition Financing, Inc. Specific terms and conditions apply. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Upromise and the Upromise logo are registered service marks of Upromise, LLC. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.
Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.
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