College savings for every future
Understanding 529 plans and their benefits
Give the gift of knowledge, career skills and life-changing opportunities to an eligible beneficiary—in the form of a tax-advantaged, benefits-oriented college savings account that can be used for a variety of qualified educational expenses.
What is a 529 plan?
Kick-start your college fund with an account that’s flexible, simple to manage and grows tax-deferred!
What can an MESP do for me?
Tax-advantaged growth potential
With an MESP account, you could save more with tax-deferred growth and 100% tax-free earnings for qualified withdrawals. Michigan taxpayers can also reduce their state taxable income up to $10,000 per year. When you pay less taxes, you have the ability to earn more and grow your college savings account faster—giving your beneficiary an even bigger head start!
With our 529 plan, you can grow your college savings faster.
Potential growth of $1 invested over an 18-year period with MESP tax advantages*
Read about material differences between bank savings accounts, taxable investments and MESP.
- *Hypothetical example. Assumes Taxable Investments/Michigan Education Savings Program ROI of 6% compounded annually and a savings account ROI of 0.06% (average rate for week of 1/6/2022 per FDIC: https://www.fdic.gov/resources/bankers/national-rates/index.html), compounded continuously. Tax calculations assume federal tax rate of 22% and MI tax rate of 4.25%, that all taxes are paid at the end of the 18th year, and that state taxes are not federally deductible. This illustration is for informational or educational purposes only and does not constitute advice, represent actual performance or predict future results and does not reflect any reduction for expenses or benefit of a state tax deduction for MESP contributions. This material does not take into account any specific objectives or circumstances of any particular investor or suggest any specific course of action. Be sure to consult your legal or tax professional for advice.↩
An MESP account can be used to pay for a wide range of qualifying educational expenses. Plus, you can withdraw money as needed for qualified expenses and even transfer funds to eligible beneficiaries at no cost.
- Use your savings at colleges, universities, trade schools and community colleges, at graduate or post-graduate schools, professional programs, apprenticeships and more.4
- Pay for tuition, fees, computers, textbooks, room and board or off-campus rent, and other required expenses.
- Pay for qualifying K-12 expenses.4
- Use your funds at eligible institutions in-state or anywhere in the world!
- Even use for student loan repayment subject to a lifetime limit of $10,000 per individual.4
Low fees and expenses
Saving for college for your child shouldn’t break the bank. That’s why investment expenses for the Michigan Education Savings Program are less than a quarter of the average 529 plan fees and less than half of what you’d pay for a broker-sold plan.5
When you open an account, you can enjoy a variety of no-cost perks like:
- NO application fees
- NO cancellation fees
- NO change–in–beneficiary fees
- NO change–in–investment-options fees
- NO loads or sales charges
- NO commissions
- NO transfer fees
The Michigan Education Savings Program offers a variety of professionally managed investment options to fit your life situation, risk tolerance and college savings goals. So, whether you’re a new or experienced investor, prefer to be hands-on or would rather “set it and forget it,” there’s a plan for you!
This 529 plan was created by the State of Michigan
The Michigan Department of Treasury selected TIAA-CREF Tuition Financing, Inc. (TFI) as the Direct Plan Manager. TFI is a wholly owned, indirect subsidiary of TIAA, one of America’s leading financial services organizations for over 100 years.Who We Are