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Give Your Clients One More Reason to Rely on Your Financial Guidance

After saving for retirement, planning for a child's college education is the next big financial challenge for many of your clients. Discuss college planning with all your clients and prospects, and let them know that opening a Michigan Education Savings Program (MESP) account is a smart way to help prepare for a child's future higher education.

Become an expert on 529 College Savings Plans. Your clients will thank you.

Earnings Grow Federal and Michigan Income Tax-deferred
When your client contributes to MESP, their account earnings have the opportunity to grow federal and Michigan income tax-deferred until withdrawn.

Any Earnings Used to Pay for Qualified Higher Education Expenses Are Federal and Michigan Income Tax-Free
The earnings portion of any distributions used to pay for qualified higher education expenses will be free from federal and Michigan income tax. This federal income tax-free treatment of qualified withdrawals and other federal tax benefits are now permanently in place for 529 plans through the passage of the Pension Protection Act of 2006.

Michigan Income Tax Deduction
Your client may also be eligible for a Michigan income tax deduction. A taxpayer is permitted a net contribution deduction from Michigan adjusted gross income for a contribution to an Account less any Qualified Withdrawals from such Account during the tax year. A taxpayer is permitted to aggregate the net contribution amount to each Account for a total contribution deduction for the tax year. Such aggregated contribution deduction cannot exceed a total of $5,000 for a single return or $10,000 for a joint return for that tax year. Amounts transferred from another 529 college savings plan are not eligible for the Michigan income tax deduction.

Federal Estate and Gift Tax Benefits
Contributions to MESP may reduce the taxable value of your client's estate. Contributions to MESP, together with all other gifts from the account owner to the beneficiary, may qualify for an annual federal gift tax exclusion of $13,000 per donor, per beneficiary for 2009. If an account owner's contribution to a MESP account for a beneficiary in a single year exceeds $13,000, the account owner may elect to treat up to $65,000 of the contributions, or $130,000 for joint filers, as having been made over a period of up to five years for federal gift tax exclusion.

WE'RE HERE TO HELP

Call us toll-free at 1-877-861-MESP
(1-877-861-6377) to:

Meet with an MESP program representative
Arrange MESP seminars or webinars at your location
Order MESP Program Brochures (PDF, 277KB), table top signs and other promotional materials

Authorization to access MESP Accounts. Get form here.

PDF files require the free Adobe Acrobat Reader. Get it here.

TELL A FRIEND


	Let a friend know about the Michigan Education Savings Program.

	Calculate Your Savings Need

	Compare College Savings Options

	Questions? Call 1-877-861-6377

	Michigan Education Trust

The tax information contained on the Michigan Education Savings Program (MESP) Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

Consider the investment objectives, risks, charges and expenses before investing in the Michigan Education Savings Program. Please call toll-free 1(877) 861-6377 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

TIAA-CREF Individual & Institutional Services, LLC, distributes MESP. The State of Michigan, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company's guarantee to MESP under the funding agreement for the Principal Plus Interest Option. Account value will fluctuate based upon a number of factors, including general market conditions.

Investment management, program administration and distribution of The Michigan Education Trust (MET) program is provided solely by the Michigan Department of Treasury. MET is not managed by TIAA-CREF Tuition Financing, Inc. nor is it distributed by TIAA-CREF Individual & Institutional Services, LLC.

The MESP Web site contains links to other Web sites. Neither MESP nor TIAA-CREF Tuition Financing, Inc. and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.