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FOR IMMEDIATE RELEASE
November 15, 2024
Contact: Ron Leix, Treasury, 517-335-2167
LANSING, Mich. — The Michigan Education Savings Program (MESP) is proud to announce that it has once again earned a Silver Rating from Morningstar, a leading provider of independent investment research. The prestigious recognition underscores MESP’s commitment to providing Michigan families with a robust and effective way to save for their children’s future higher education expenses.
Morningstar’s rating reflects the program’s strong investment offerings, low fees, and overall performance. MESP has consistently demonstrated its ability to deliver value to its participants, making it a trusted choice for Michigan families looking to help secure their children’s higher education future.
“We are thrilled to receive the Silver Rating from Morningstar for another year,” said Diane Brewer, MESP program administrator. “This recognition highlights our dedication to providing quality investment options and our ongoing efforts to help families save for higher education. We remain committed to ensuring that every family in Michigan has the opportunity to pursue their education goals without financial burden.”
MESP offers a variety of investment options, including enrollment year options, which automatically adjust as the beneficiary gets older, and static options allowing families to tailor their investments to their risk tolerance. Additionally, MESP participants may benefit from triple tax advantages including a state tax deduction on contributions made to an MESP account up to $10,000 for married couples filing jointly or $5,000 for individuals filing single per year, tax-deferred growth, and tax-free withdrawals for qualified higher education expenses, making it an attractive option for families saving for college.
With the rising costs of higher education, it is more important than ever for families to have access to effective savings tools. MESP aims to empower families to take charge of their educational savings, ensuring that children have the resources they need to succeed in their academic pursuits.
Based upon Morningstar’s 2024 analysis of 59 education savings plans rated on process, people, parent and price, MESP was cited for multiple accolades including, “diligent stewardship and offers a well-constructed plan at a low cost,” as well as praise for “Michigan’s Office of Postsecondary Financial Planning and Bureau of Investments work together and provide superb and prudent oversight, earning a High Parent rating.”
About MESP
MESP is one of three Michigan Section 529 plans, named after the section of the Internal Revenue Code that allowed for their creation. The others are the Michigan Education Trust prepaid tuition program and the MI 529 Advisor plan, which is offered through investment advisers.
Each plan offers Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on earnings if account proceeds are used to pay for qualified higher education expenses.
MESP can be used at any eligible college, university or trade school in the nation and some abroad for a variety of qualified higher education expenses, including tuition, fees, certain room and board costs, books, supplies and equipment required for enrollment.
More information about MESP is available at MISaves.com or by calling 877-861-6377.
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.
In an annual review (10/29/2024) of the largest 529 college savings plans (59 plans representing more than 90% of 529 assets), Morningstar identified 32 plans that stand out above the rest, assigning those plans Gold, Silver, and Bronze Morningstar Analyst Ratings for 2024. These plans offer a well-researched asset-allocation approach, a robust process for selecting and monitoring underlying investments, a well-resourced and experienced investment team, stable and engaged oversight from the state and low fees. Investors in what Morningstar analysts consider the best 529 plans should be well-positioned for the future. The four key pillars used by Morningstar to evaluate 529 college savings plans include – Process, People, Parent, and Price. ©2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. TIAA-CREF Tuition Financing, Inc. compensates Morningstar for the ability to quote these ratings in public communications. Past performance is no guarantee of future results. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Neither TIAA-CREF Tuition Financing, Inc., nor its affiliates, are responsible for the content found on any external website links contained herein.
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