State of Michigan college savings plans offering bonuses to celebrate 529 Awareness Day and boost educational savings
LANSING — In recognition of National 529 Day and Gov. Gretchen Whitmer’s proclaiming May 29 as 529 Awareness Day in Michigan, the Michigan Education Trust (MET) and the Michigan Education Savings Program (MESP) are teaming up to encourage Michiganders to invest in their children’s educational future early and often.
And they’re chipping in bonuses to inspire greater participation.
“For more than 35 years, these programs have allowed Michigan families to build foundational funding to save for their children’s educational future,” said MET Executive Director Diane Brewer. “Proof of their value lies in the opportunities 529 programs have provided over the years for so many young people who might not otherwise have been able to achieve their dreams.”
MET, the state’s 529 prepaid tuition savings program, is offering financial incentives to new and existing customers from now to May 31, 2024. See rules and eligibility requirements.
New and existing customers may be eligible for a $50 bonus deposit. Purchasers can also use coupon code 529DAY to waive the $25 enrollment fee on new contracts opened before May 31, 2024. Only one account per beneficiary qualifies for the bonus, and MET will make the bonus payment after contract holders complete their purchase of at least one credit hour of prepaid tuition.
MESP will give up to $100 to anyone opening a new MESP account online from May 22 through May 31, 2024. See rules and eligibility requirements.
MET AND MESP also have partnered on a joint YouTube page to provide information about Michigan’s 529 programs. Check out MET and MESP information on YouTube.
Additionally, the programs hold events periodically throughout the state to provide attendees the opportunity to purchase a MET contract and open an MESP account on-site. Representatives from MET and MESP are available at the events to help educate on the features and benefits of each plan and offer tips to parents, grandparents and others on saving for college. MET also offers one-on-one consultation sessions for those unable to attend one of the events.
Brewer emphasized that anyone can contribute to the 529 programs and that they provide a great opportunity for gift-giving any time of year.
“We have heard countless testimonials over the years from parents, families and recipients who expressed gratitude for the opportunities MET and MESP have provided — including leaders in all walks of life,” Brewer said. “These 529 programs truly can be for everyone. They’re one method of ensuring all Michiganders can save for a child’s educational future.”
In addition, investing in MET or MESP provides additional value through tax advantages and potential investment returns over time. Both programs offer a state of Michigan tax deduction on contributions, and funds used for qualified higher education expenses may be exempt from federal and state income taxes.
About MET: Administered by the Michigan Department of Treasury, MET is Michigan’s Section 529 prepaid tuition program that locks future tuition at any of the state’s public universities and colleges at today’s rates. MET contracts are portable to out-of-state and Michigan private colleges and universities, may be transferred to other eligible family members and are refundable if the student does not attend college.
About MESP: MESP is Michigan’s direct-sold Section 529 college savings plan that offers families various investment options. It also provides Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on any 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. Qualified higher education expenses include tuition, fees, room, board, books, equipment and supplies required for enrollment. Limitations apply. See the MESP Disclosure Booklet for details.
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. 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. Consult your legal or tax professional for tax advice. Michigan taxpayers can reduce their state taxable income by up to $10,000 if married filing jointly ($5,000 filing single) from contributions made into a Michigan Education Savings Program account. 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.
