If you are one of the many parents thinking about their children’s future education you’ll want to consider the Michigan 529 college savings plan. While the thought of saving for college can make you feel overwhelmed, there is no better time than now. The state of Michigan wants the best for your child’s future and this is why they have created the Michigan education savings program. This program is also known as the MESP program. This program encourages families to save today for future higher education expenses. Here are some of the many advantages of the 529 savings plan.
Michigan 529 College Savings Plan Tax Advantages
The MESP, is more than just a college savings plan. Tax advantages also make it a smart investment. As a Michigan taxpayer you can receive a $5000 state income tax deduction on your contributions. The deduction doubles to $10,000 on couples filing a joint return. Michigan taxpayers can also be eligible for a state matching grant. These grants offer one dollar contributions for each three dollars contributed, up to $200 for each eligible beneficiary. What you save today can grow tax deferred from Michigan State income taxes as well as federal income taxes. Tax-free qualified withdrawals can be made for items that are associated with college tuition costs.
What colleges can you Attend?
Your account can be used at most accredited institutions in the United States. Most college universities in the United States are participating in the 529 college plans. Some countries have also decided to participate in the program which makes studying abroad another possibility. This flexibility gives you and your child a vast amount of options when it comes to which colleges they can attend.
MESP College Savings Plan Account Flexibility
As a MESP 529 college savings plan account holder, you maintain control of your account. You also have control of all the accounts that are invested with your account. You can open up an account for your child, grandchild, or even yourself. If you’re beneficiary chooses not to attend a college or does not need the money you can select a different beneficiary. This ability to change the beneficiary gives you maximum control of your account.
Michigan 529 College Savings Plans Investment Options
Because most of us are not investment professionals MESP offers many different plans that can help you make your valuable decisions. Many of these programs very and risk and allow you to select the options that may be right for you and your situation. You can invest new contributions and one or many different account portfolios. These various options will help you obtain the money that you need for your savings goals. Regular contributions can be key elements in reaching your investment objectives. Consider establishing an automatic contribution plan from your checking or savings account.
As you can see there are many different benefits for obtaining a 529 college savings account. Taking advantage of these benefits can make a big difference in your child’s life and rolling in a Michigan 529 college savings plan is easy and well worth the time. Make a difference in your child’s life by investing in their future.